Thuong Kon Tum Hydropower Plant

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Vinh Son - Song Hinh Hydropower JSC was planning the development of the 220 MW Thuong Kon Tum Hydropower plant, on the Dak Nghe river, a branch of the Dakbla river, part of the Se San River located in the Ngoc Tem commune, Kon Plong district, Kon Tum province. The project was expected to produce 1.09 million MWh annually and was designed to consist of a reservoir, dam, water intake, penstock, pressurized well, power house and discharge channel. Vinh Son - Song Hinh Hydropower JSC was traded at VSH, Vietnam Stock Exchange. The output was to be supplied to the national grid via a 220 kV transmission line, connecting the plant with the Duc Pho 220 kV transformer station. Construction period is estimated at five years, and the total project lifespan is planned for 31 years. The electricity was expected to be sold for 720 VND/kWh in the project model. The output was to be taxed with a 2% resource tax, based on an April 9th 2009 law by the Ministry of Finance. The project was also faced with a 25% income tax. Commissioning was expected for December 2014. The EPC contract for the diversion system, including the 18 km tunnel, underground power house system, tailrace system etc. (or parts thereof) were awarded to China Railway 18th Bureau Group Co. LTD. Construction was expected to last 5 years. Electricity was expected to be VND 720/kWh ($0.0346 per kWh). Feasibility study was approved in June 2009. The first construction contract was signed in January 2010. Total investment was expencted to be VND 5.58 trillion ($267.1 million). The project applied for UNFCCC/CDM financing via the Swiss company Vietnam Carbon Assets Ltd. Financial closure date was unknown, but estimated here at January 2010 (signing of first EPC contract). The debt/equity ratio was 70/30. Cost of debt was 10.5%. http://cdm.unfccc.int/filestorage/Z/Q/8/ZQ8B3I74KMLUWSJ21CVPR6YF0EOX9A/TKT%20PDD.pdf?t=SGN8bTI3dXdyfDCTKH7o7sQkNH7FSpPfox-e "As of June 30, Electricity of Vietnam (EVN), the country’s power monopoly, owed Vinh Son-Song Hinh Hydropower Joint Stock Co. (VSH) an amount of 500 billion dong with the interest rate of 11.2 percent – 11.4 percent per year, VSH said in its reviewed fiscal report in the first six months of this year. Meanwhile, a group of shareholders holding three million shares (about 1.5 percent stake of VSH) said that this interest rate level was very low against the lending interest rate that VSH had to bear borrowing bank loans for its investment projects. The total debts were made at many periods, even including the debts that fell due, but EVN had no money to repay. These shareholders said that the debts of 500 billion dong are too big compared to the company’s chartered capital of 2.062 trillion dong, VSH should publicise information if the debts are actually overdue. Of VSH’s total chartered capital of 2.062 trillion dong, EVN holds 31.16 percent stake, State Capital Investment Corp (SCIC) owns 24.47 percent stake and the remainder of 44.37 percent held by outsider shareholders. Currently, VSH has not yet held its annual general meeting as it still failed to finish negotiations of electricity prices with EVN. The power price level in the company’s financial report in 2010 and the first six months of 2011 was equal to only 90 percent of the electricity price agreed since 2009. " Financial closure date was unavailable. www.scic.vn/english