Credit Agreement Signed for O Mon 4 Thermal Power Plant Project
On July 24, 2026, in Hanoi, the Vietnam National Oil and Gas Group (Petrovietnam) held a ceremony to sign the credit agreement for financing the O Mon 4 Thermal Power Plant project. The event was attended by the Vietnam Bank for Investment and Development (BIDV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank). This marks a significant milestone in implementing this national priority energy project.
Overview of the O Mon 4 Thermal Power Plant Project
The O Mon 4 Thermal Power Plant is a key coal-fired thermal power project within the framework of Vietnam's Power Development Program VIII. The project has a total investment of approximately $2.3 billion, with a designed capacity of 1,250 MW, utilizing modern, environmentally friendly technology. This project is implemented under the Build-Operate-Transfer (BOT) model, with an operation period of 25 years, after which it will be transferred to the Vietnamese state.
The project is being constructed within the existing premises of the O Mon Thermal Power Plant in O Mon district, Can Tho city. The implementation of this project aims to meet the growing electricity demand in the Mekong Delta region and contribute to national energy security.
Details of the Credit Agreement Signing Ceremony
The ceremony to sign the credit agreement for the O Mon 4 Thermal Power Plant project took place at Petrovietnam's headquarters in Hanoi. The event was attended by senior leadership from Petrovietnam, BIDV, and VietinBank. This represents a crucial step in securing funding to implement the project according to schedule.
The credit agreement was signed with a total value of $1.8 billion, with BIDV providing $900 million and VietinBank providing $900 million. The loan has a term of 15 years, including both the construction and operation phases of the power plant. The interest rate applied follows a floating mechanism, adjusted according to legal regulations and the contract terms.
Information on Participating Parties
| Entity | Role | Contribution |
|---|---|---|
| Petrovietnam | Project Investor | Providing equity capital ($500 million) |
| BIDV | Primary Financial Bank | Financing $900 million |
| VietinBank | Primary Financial Bank | Financing $900 million |
| Vietnam Machinery Installation Corporation (Lilama) | Main Contractor | Construction of the power plant |
| Mitsubishi Power (Japan) | Technology Provider | Equipment supply and technology transfer |
Significance and Importance of the Project
The O Mon 4 Thermal Power Plant project holds particular importance for the national power system and socio-economic development in the region:
- National Energy Security: The project contributes to diversifying electricity supply sources, reducing dependence on imports, and ensuring stable electricity supply to key areas.
- Regional Economic Support: The power plant will provide stable electricity to industrial zones and urban areas in the Mekong Delta, promoting socio-economic development.
- Modern Technology Application: The plant uses supercritical technology with high efficiency, reducing greenhouse gas emissions compared to traditional thermal power plants.
- Job Creation: The project is expected to create approximately 5,000 direct and indirect jobs during the construction and operation phases.
Technical and Economic Information of the Project
The O Mon 4 Thermal Power Plant is designed with advanced technical specifications:
| Parameter | Value |
|---|---|
| Designed Capacity | 1,250 MW |
| Installed Capacity | 2 x 625 MW |
| Technology | Supercritical (SC) |
| Fuel | Coal (approximately 3.5 million tons/year) |
| Thermal Efficiency | ~45% (5-7% higher than conventional supercritical) |
| Flue Gas Treatment System | Electrostatic precipitator system, SOx and NOx removal systems |
| Construction Period | 48 months |
| Operation Period | 25 years (BOT) |
Implementation Plan and Expected Timeline
According to the plan, the O Mon 4 Thermal Power Plant project will be implemented in the following main phases:
- Phase 1 (2026-2027): Complete legal procedures, land clearance, and financial preparation.
- Phase 2 (2028-2030): Construct main components of the power plant.
- Phase 3 (2030-2031): Install equipment and conduct testing and acceptance.
- Phase 4 (2031): Complete and put into commercial operation.
The project is expected to be completed and operational in the fourth quarter of 2031, contributing additional capacity to the national power system during the 2032-2035 period.
Impact on Vietnam's Energy Sector
The signing of the credit agreement for the O Mon 4 Thermal Power Plant project has a positive impact on Vietnam's energy sector:
- Stable Electricity Supply: The project will add significant capacity to the national power system, particularly in the southern region.
- Energy Transition Promotion: Despite using coal, supercritical technology reduces emissions and creates conditions for future transition to clean energy.
- Foreign Investment Attraction: The project involves international contractors and technology providers, contributing to enhancing domestic industrial capabilities.
- Capital Market Development: Mobilizing large capital from domestic commercial banks for priority energy projects contributes to developing Vietnam's financial market.
Conclusion
The signing of the credit agreement for the O Mon 4 Thermal Power Plant project marks a significant step in implementing this priority energy project. With the participation of Petrovietnam, BIDV, and VietinBank, the project will be implemented according to schedule, contributing to ensuring national energy security and promoting socio-economic development in the Mekong Delta region.
The project not only brings economic and social benefits but also demonstrates Vietnam's commitment to developing a stable electricity supply while applying modern technology to minimize environmental impact. This serves as a testament to the effective cooperation between state-owned enterprises and commercial banks in implementing the country's priority projects.
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