Jaks takes step to kick mega project into life

By BTimes, June 28th, 2013

 

Malaysia’s Jaks Resources Berhad is taking a bold step to develop its long delayed, giant $2.25 billion coal-fired power plant in Vietnam.
In a document sent to Hai Duong Provincial People’s Committee on June 14, Jaks Hai Duong Power Company Limited – a wholly-owned subsidiary of Jaks Resources Berhad and also the investor of the project – said it was coordinating with its engineering, procurement and construction (EPC) contractor to organise a ground-breaking ceremony for EPC works “anticipated on June 28, 2013”.
The 1,200 megawatt project’s EPC contractor is China’s Wuhan Kaidi Electric Power Engineering Company, which also won EPC contracts for the construction of two other power plants in Vietnam.
The event will mark an important milestone for two-year-delayed project and help the investor to put the first 600MW turbine in the first half of 2018. This will also significantly contribute to Vietnam’s electricity supply in the future.
In a document of Jaks Resources Berhad sent to Malaysia stock exchange, Wuhan Kaidi Electric Power Engineering Company shall complete the first turbine 42 months from the date of the handover of the site to EPC contractor, and 48 months for the second turbine.
At present, site clearance has not been completely finished, but the Malaysian firm has urged the local authorities to timely complete site clearance and hand over it the land use rights certificate at the planned ground-breaking event.
Jaks Resources obtained the investment certificate in August 2011 to build Hai Duong thermal power plant under a build-operate-transfer (BOT) contract with Vietnam’s Ministry of Industry and Trade.
The project’s cost will be 80 per cent financed by debts and 20 per cent by equity. As of March 31, 2013, the firm said it had invested $31 million in this project.
Apart from signing EPC contract with Jaks Resources, Wuhan Kaidi Electric Power Engineering Company, is negotiating to acquire a 40 per cent stake in this project.
With the Kaidi’s involvement, Jaks Resources believed it would be able to leverage on Kaidi’s experience and track record in securing financing for the project.
Hai Duong thermal power plant is the second BOT power projects being built by foreign investors in Vietnam at present. The other one is 1,200MW Mong Duong 2 thermal power plant, invested by a consortium between the US’ AES Corporation, South Korea’s Posco Power and China Investment Corporation.

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