Environmental NGOs submitted request letter regarding EPC risk on Van Phong project in Vietnam

On April 2, 2019, NGOs in Japan, Korea, and Australia submitted written the request letter to the Japan Bank for International Cooperation (JBIC), a public financial institution in Japan, to raise economic risks associated with the Van Phong 1 coal-fired power plant project and withdrawal loan consideration.

This Van Phong 1 project is to build 2 units of 660 megawatt (MW), SC (super critical) coal-fired power plant at Ninh Phuoc commune, Ninh Hoa, Khanh Hoa province, in Vietnam. Sumitomo Corp. is planning to sponsor this project, JBIC is considering to provide finance and  NEXI is considering to cover insurance. Japanese major banks, Sumitomo Mitsui, MUFG, Mizuho may also financially support this project.

For this project, it is reported that Korean company, Doosan Heavy Industries, participates as EPC (engineering, procurement, and construction). However, the financial rating of Doosan Heavy Industries is rapidly falling. It is pointed that the company has difficulties to continue its business planning to take part without the public support of the Korean government. Also, in South Korea, criticism against coal-fired power is increasing, and some politicians in the Korean Diet have objected to continuous support to coal using public funds.

Although this request document is written in English, the EPC risk in the plan is clear considering down grading of Doosan Heavy Industries. We strongly request immediately to stop considering a loan to this project that adopts a low efficient outdated technology.

Full paper of our requet(PDF)