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Four major Vietnamese coal projects may be delayed as result of new law

November 03, 2020

Reuters:

A new law in Vietnam could delay four major coal-fired power projects worth a combined $9.1 billion, a U.S.-based think tank said on Tuesday, as the Southeast Asian country looks to up the amount of energy it generates from renewable sources.

The Institute for Energy Economics and Financial Analysis (IEEFA) said Vietnam’s revised law on public-private partnerships could affect the Nam Dinh 1, Vung Ang 2, Vinh Tan 3 and Song Hau 2, coal projects, which each have a capacity of 1.2 to 2.0 gigawatts.

The new law, IEEFA said, lacks clear provisions for sovereign guarantees, introduces more rigid requirements for contracts and makes Vietnamese law mandatory as the governing law, all of which could create hurdles for foreign lenders and investors. 

[Khanh Vu]

More: New Vietnam law threatens to delay major coal projects – think tank

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