The Vietnam Electricity (EVN), Power Project Management Board 2, and the Power China - Vietnam Machinery Erection Corporation (Lilama) consortium signed an EPC (Engineering, Procurement, Construction, Testing, and Commissioning) contract for Component Project 1 (Power Plant) of the Quang Trach II LNG Thermal Power Plant project, with a total contract value exceeding VND 25.202 trillion.

The signing ceremony was attended by Party Central Committee Member and Acting Minister of Industry and Trade Le Manh Hung, alongside representatives from various departments and agencies under the Ministry of Industry and Trade. Also in attendance were representatives from the Ministry of Finance, the Ministry of Construction, and the Economic Security Department of the Ministry of Public Security; the Embassy of the People’s Republic of China in Vietnam; leaders of Vietnam Electricity, representatives of Power Project Management Board 2, and executives of the Power China - Lilama consortium, as well as representatives from the project’s financing banks, including Vietcombank, VietinBank, BIDV, and Agribank.

Increasing the share of green power

The Quang Trach II LNG Thermal Power Plant project is built at Hon La Economic Zone, Phu Trach commune, Quang Tri province, with EVN as the investor and the Power Project Management Board 2 directly managing and implementing the project. This is a nationally important energy project under Power Development Plan VIII with a capacity of 1,612.8MW (2x806.4MW), utilizing combined cycle gas turbine technology. It plays a key role in shifting the power source structure toward a green transition, contributing to energy security, enhancing power system reliability, and fulfilling Vietnam’s commitments to reducing greenhouse gas emissions.

The project has a total investment of over VND 52.490 trillion, with 20 percent consisting of equity and 80 percent from commercial loans. The overall project comprises two components: Component 1 - Power Plant, with a total investment of VND 40.123 trillion, and Component 2 - LNG Terminal and Port, with an expected investment of VND 11.800 trillion. The project is co-financed by a group of four domestic commercial banks: Vietcombank, VietinBank, BIDV, and Agribank.

Under the signed EPC contract, the consortium performing the works includes Power Construction Corporation of China (Power China) and Vietnam Machinery Erection Corporation (LILAMA). The EPC consortium will execute the full package of design, procurement, construction, installation, testing, and commissioning of the plant, ensuring the project is completed in line with the Power Development Plan VIII schedule while meeting high standards for quality, safety, and the environment.

Once operational, Quang Trach II LNG Thermal Power Plant is expected to provide approximately 10 billion kWh per year to the national power system, contributing to energy security, increasing the proportion of green energy sources, and achieving energy transition goals under Power Development Plan VIII.

Contractors committed to project progress, quality, and safety

Speaking at the ceremony, Dang Hoang An, Chairman of the EVN’s Board of Members, emphasized that the signing of the EPC contract for the Quang Trach II LNG Thermal Power Plant is a significant milestone, demonstrating EVN’s determination to implement large-scale, modern, and environmentally friendly power projects. The investor places special importance on the quality and progress of the project and believes that the cooperation between two experienced domestic and international partners in the energy sector will create synergy to help the project achieve its set goals.

Representing the contractor consortium, Tran Quan Phuc, Deputy General Director of the Power China, committed to working closely with the investor and relevant units. He pledged to apply advanced technical solutions, strictly comply with contract terms, Vietnamese laws, and international practices, and mobilize full resources to ensure quality, progress, and safety throughout the project implementation.

The signing of the EPC contract for the Quang Trach II LNG Thermal Power Plant project is a clear demonstration of the effectiveness of international cooperation in the energy sector. It also contributes to enhancing the capacity of domestic enterprises, promoting sustainable development, and meeting the country’s electricity demand for the country’s socio-economic growth.