Press Release

Long Phu - Song Hau Petroleum Power Project accelerated

  • Aug 20, 2014
  • Petrovietnam

On 14th August 2014, PetroVietnam Chairman of the Board of Directors Nguyen Xuan Son came to visit and work with Long Phu - Song Hau Petroleum Power Project Management Unit (PMU) in Soc Trang province.

Long Phu - Song Hau Petroleum Power PMU was established by PetroVietnam since February 2009 to act as the Project Owner’s representative for the direct management of construction investment into Long Phu Power Center (Soc Trang province) and Song Hau Power Centre (Hau Giang province) projects.

During the meeting, Mr. Nguyen Doan Toan, Head of Long Phu - Song Hau Petroleum Power PMU had a preliminary report on the implementation of the projects and indicated the advantages and disadvantages facing the projects.

Mr. Nguyen Doan Toan, Head of Long Phu - Song Hau Petroleum Power PMU, reported at the meeting

Regarding Long Phu Power Center (Soc Trang province) Infrastructure Project, so far, the construction of ancillary items, infrastructure of Long Phu 1 thermal power plant has been completed and put into use. Payment settlement dossiers have been finished for major infrastructure items such as site clearance - leveling, construction of bypass - access road to the center, power - water supply for construction and PMU management building.

In late 2013, the PMU completed selection of contractors, signature of EPC contract for the main plant with the contractor consortium of PM (Russia) - BTG (Slovakia) - PTSC (Vietnam). However, during the implementation of EPC contract for Long Phu 1 thermal power plant, the contractors’ works did not meet the schedule. Currently, the contractor consortium has not reached agreement and not proved the option for contract performance. This is the difficulty to which PVN and PMU are finding solution.

Regarding the projects at Song Hau Power Centre (Hau Giang province), so far, the PMU has completed 98% of site clearance, leveling work, and PMU management building has been accepted and put into use. The ancillary items such as power - water supply for construction, river embankment are under construction, basically meeting the schedule for construction of Song Hau 1 Thermal Power Plant.

Currently, the Government and ministries have approved in principle to assign Lilama as the EPC contractor of Song Hau 1 Thermal Power Plant Project. Under the schedule, the PMU will complete procedures for signing the EPC contract of the main plant in December 2014. That a local EPC contractor is selected will shorten the procedures and duration of organizing, selecting, negotiating contract.

PVN Chairman of BOD Nguyen Xuan Son addressed at the meeting

Chairman Nguyen Xuan Son highly appreciated Long Phu – Song Hau Petroleum Power PMU for the achievements in expeditiously constructing and completing the organizational structure, recruiting manpower, promoting resources with good results recently.

In order that Long Phu – Song Hau Petroleum Power PMU continues the works in accordance with the schedule, Chairman Nguyen Xuan Son noted: it is necessary for PMU and the contractors to determine that Long Phu and Song Hau projects must be implemented quickly and on schedule. Particularly, attention should be paid to promptly solving problems during implementation. In addition, the PMU should coordinate with local authorities to resolve the problems arising from external factors. At the same time, efforts should be made to assert the role of the focal unit. There should be close coordination with related companies under the Group, and discussion with the local and foreign contractors on the works that the units under the Group can undertake. Apart from small works and unforeseen circumstances requiring support from units outside the Group, the works shall be done by the units under the Group if they can afford.