Petrovietnam takes drastic actions to carry out Ninh Thuan 2 nuclear power project

With an urgent timeline to put the plant into operation by 2030 or 2031, the project faces significant challenges and requires a shift to a more flexible, accelerated management approach.

Special mechanisms, policies in place

Associate Prof. Dr. Ngo Tri Long, former Director of the Price and Market Research Institute under the Ministry of Finance, noted that the approval of special mechanisms and policies for the Ninh Thuan nuclear power project will make it easier for the project’s developers to move forward. Specifically, the mechanisms allow simultaneous negotiations with international partners for construction cooperation and credit arrangements, helping to fast-track the project and avoid delays caused by prolonged administrative procedures. This will help shorten construction timelines and speed up the plant’s operational start, he held.

Additionally, the simplified contracting procedures for critical tenders will optimise time and reduce complexity, he said, adding that the flexibility to raise funds from multiple sources enables Petrovietnam to secure financing without needing approval or asset collateral. Moreover, exempting domestic banks from credit limits when financing the project is a major advantage, ensuring a steady flow of capital for its execution, Long underlined.

Meanwhile, energy expert Nguyen Thanh Son from the Electric Power University pointed out that nuclear power projects worldwide often experience significant cost overruns during construction. With an estimated 12 billion USD investment required to build a nuclear plant, there are also unpredictable operational costs, such as expenses for nuclear fuel, uranium reserves, waste disposal, and decommissioning.

He stressed the need for comprehensive government-backed guarantees to give investors confidence, citing the UK Government's studies from the 1980s and early 2000s, which found that in a free electricity market, energy companies would not build nuclear plants without governmental subsidies and guarantees.

Petrovietnam's steering committee for the implementation of the Ninh Thuan 2 nuclear power project convenes its first meeting in February 2025. (Photo: VNA)

Agreeing with Son, Long said that establishing contingency funds to address unforeseen challenges and securing long-term, stable electricity purchase agreements are also seen as key solutions to ensure the project's financial viability.

Petrovietnam’s quick moves

Tran Quang Dung, Permanent Deputy Secretary of Petrovietnam’s Party Committee, stated that after the Prime Minister assigned the group to work as the investor of the Ninh Thuan 2 nuclear power project, Petrovietnam has acted decisively and swiftly. The group has already submitted a report to the Ministry of Industry and Trade on the special mechanisms related to investment procedures, selection of contractors, staffing, financing, and nuclear safety standards.

The firm has established a steering committee to oversee preparations for the project. It has worked with Ninh Thuan’s provincial authorities to agree on land clearance measures for 2025 and included the project in the province’s land use planning, Dung said.

At the same time, to prepare the workforce for the nuclear power plant, Petrovietnam has sent requests to its subsidiaries to assign staff to the project and has begun receiving project documents from Vietnam Electricity (EVN) Group for review. In mid-February, Petrovietnam hosted a specialised workshop on nuclear energy to gather experts' feedback on technical and policy issues.

Petrovietnam Chairman Le Manh Hung stated that the Ninh Thuan 2 nuclear power plant is not only a crucial task entrusted by the Party and State but also an honour for Petrovietnam, aligning with the company’s goal of becoming a national energy and industrial powerhouse. With the pressing target of putting the plant into operation by 2030 or 2031, the project presents a significant challenge, and a more flexible management approach is needed to meet the deadlines, he said.

Hung said that Petrovietnam is the second-largest electricity producer in Vietnam after EVN, with extensive experiences from implementing 13 large-scale power projects. Additionally, with a BB+ credit rating independent of the government, Petrovietnam has strong financing capabilities and accumulated resources to support large energy projects. The technology for the nuclear power plant will be provided by licensed contractors under the strict supervision of the International Atomic Energy Agency (IAEA), ensuring the project’s successful implementation.

According to the baseline scenario, the Ninh Thuan 1 nuclear power plant will consist of two reactors with a capacity of 1,200 MW each, while the Ninh Thuan 2 nuclear power plant will also feature two 1,200 MW reactors.