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Hydropower plant set to resume construction

Ensuring safety

The expanded plant project invested by Vietnam Electricity (EVN) was launched on January 10, 2021 but 10 months later, a landslide was discovered outside its foundation, halting construction.

A representative of EVN reports on construction of the expanded Hoa Binh Hydropower Plant

Following the directions of Deputy Prime Minister Pham Van Thanh, representatives of the Ministry of Industry and Trade (MoIT), Ministry of Construction, People's Committee of Hoa Binh Province and EVN, as well as the design consultant and contractor, conducted a site inspection in November 2021, and discussed solutions to ensure the safety of the construction works.

On July 29, 2022, EVN requested the MoIT’s permission to resume construction. According to Bui Phuong Nam, Director of EVN Power Projects Management Board No.1 (EVNPMB1), the expanded plant is of great significance for ensuring the safe and stable operation of the national power system from 2025 onwards, especially in the current context of a change in the power source structure.

However, the project has had to halt construction for 10 months, causing great difficulties for the investor, contractors as well as directly affecting the progress and investment efficiency of the project,” Nam said.

Easing difficulties

Discussing contractors’ recommendations on price adjustments due to fluctuations in the prices of petrol and input materials, as well as the costs of the construction suspension, Nam said the contract was based on fixed unit prices and any unexpected material price increase can only be approved by competent authorities, while adjustment factors must be considered in comparison with the total investment.

The Ministry of Construction has reported the difficulties and obstacles in the management of the construction investment costs to the Prime Minister.

Accordingly, the ministry has only proposed solutions for contracts based on modifiable unit prices, while there is no specific solution yet for package contracts or contracts based on fixed unit prices.

Minister of Industry and Trade Nguyen Hong Dien inspects the construction site

Regarding the emerging costs incurred due to the construction suspension, EVNPMB1 coordinated with contractors to prepare relevant documents since November 2021 relating to human resources, construction machinery, and measures to ensure environmental protection, security and order in construction areas. On that basis, the EVNPMB1 will review the regulations and report to the investor to make recommendations as prescribed.

Removing obstacles is vital in order to ensure the project’s speedy resumption, and relevant parties and contractors will therefore boost their resources and solutions to speed up construction progress to partially offset the overall delays.

Thu Huong

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