Minh Luong SHPP

Active

Minh Luong Hydro Power JSC (may be a subsidiary of HACO Group, Vietnam) developed the 22.5MW Minh Luong small hydropower plant, Ngoi Dien River, Van Ban district, Lao Cai province. The project consisted of two turbines of 11.25MW each and was expected to generate 102,430 MWh annually. Annual tariff was expected to be VND 590/kWh. Operating life was 30 years. Construction period 3 years. Corporate tax rate 15%. An MoU with EVN was signed in January 2005. The technical design was completed in July 2005. The EIA was approved by the Department of Natural Resources and Environment of the Lao Cai province in March 2006. The construction contract was signed in February 2007. The construction contract for the tunnel and foundation intake was signed in October 2008. Commissioning was expected for March 2012. Total capital cost was estimated at VND 369.5 billion (US$17.7 million), at 70/30 debt to equity. the ROE was estimated at 24.63% based on Morningstar International Cost of Capital (2006). The debt rate was estimated at 11.4%, based on Annual Report of State Bank of Vietnam (2006). The project applied for UNFCCC CDM financing. The financial closure date was unavailable. The project was expected to be closed in March 2012, but this was unconfirmed. Hence the project is reported as under development. Project location: 22o 02’38.5” North latitude 104o 05’30.5” East longtude http://cdm.unfccc.int/filestorage/N/5/I/N5ISR328DQPEK79YCFZMA6HTLGBV04/4991%20PDD.PDF?t=WE98bWkya2kxfDBnMhqUM2u_ha86FxR9T2JB