Restart of $1.5 Billion Long Phú 1 Power Plant Project in Vietnam After 16-Year Standstill
A national priority project valued at over 39,000 billion VND has unexpectedly been restarted after being stalled for nearly a decade. Will this be the boost Vietnam needs to address electricity shortages, or will it continue to serve as an expensive lesson about delays and cost overruns?
After years of legal hurdles, contract issues, and impacts from international sanctions, the Long Phú 1 Thermal Power Plant project has officially entered the restart phase with the participation of GE Vernova International LLC from the United States. This is seen as a positive signal for one of the largest power source projects in the Mekong Delta region.
Project Overview
The Long Phú 1 Thermal Power Plant has a total capacity of 1,200 MW consisting of 2 generating units, with total investment capital of approximately $1.5 billion, equivalent to over 39,000 billion VND at current exchange rates. The project is expected to add approximately 7 billion kWh of electricity to the national power system annually upon completion.
| Long Phú 1 Power Plant Project Summary | |
|---|---|
| Project | Long Phú 1 Thermal Power Plant |
| Capacity | 1,200 MW |
| Total Investment | Approximately 39,000 billion VND |
| Expected Electricity Output | 7 billion kWh per year |
| Location | Mekong Delta Region |
| Target Operation | 2027 |
| New American Partner | GE Vernova International LLC |
Why the Project Was Stalled for Many Years
| Timeline | Developments |
|---|---|
| 2014 | Project launch with EPC consortium of Power Machines and PTSC |
| 2018 | Power Machines of Russia subjected to US sanctions |
| 2019 | Russian contractor withdraws from the project |
| 2019-2025 | Construction stalled for an extended period |
| 2026 | Restart with many new contract packages |
| 2027 | Target for commercial power generation |
According to public documents, when Power Machines of Russia was subjected to US sanctions, many international subcontractors, including General Electric of the United States, faced difficulties in continuing contract implementation. This caused serious delays in the project and stopped it when only about 78% of the work had been completed.
Current Restart Situation
The most notable point in this restart is that GE Vernova International LLC has been designated to carry out the technical service package for the turbine and generator systems with a contract value of approximately 158.8 billion VND. This is one of the most important items determining the operational capability of the entire plant.
In addition, Petrovietnam has also signed other contracts with PTSC and China Tianchen Engineering Corporation to complete the remaining parts of the project.
Significance for Vietnam's Energy Security
If completed according to schedule in 2027, Long Phú 1 will bring many important benefits:
- Add approximately 7 billion kWh of electricity annually
- Reduce electricity pressure in the southern region
- Utilize tens of thousands of billion VND in already invested assets
- Create additional jobs and revenue for the locality
- Increase stability for the national power system
| Indicator | Long Phú 1 |
|---|---|
| Capacity | 1,200 MW |
| Total Investment | Approximately 39,000 billion VND |
| Duration | Nearly 16 years |
| Electricity Production per Year | 7 billion kWh |
| Current Status | Being restarted |
The participation of a leading American energy technology corporation in the restart shows that confidence in the project's completion potential has significantly improved. However, challenges remain substantial as many pieces of equipment have been at the construction site for many years and need thorough evaluation before being put into operation.
Vietnam is entering a phase of rapidly increasing electricity demand due to the development of industry, data centers, AI, and high-tech manufacturing. In this context, bringing Long Phú 1 to completion is not just the story of a thermal power plant but also a test of Vietnam's ability to handle trillion-dollar stalled projects.
Conclusion
The restart of the Long Phú 1 power plant project represents a significant development in Vietnam's energy sector. After being stalled for 16 years due to various challenges including international sanctions and contractual issues, the project is now back on track with new international partnerships.
With the participation of GE Vernova, a leading American energy technology company, there is renewed hope that the project can be completed by 2027. However, the road ahead is not without challenges, as the project has already faced significant delays and cost overruns.
As Vietnam continues to develop its industrial base and digital infrastructure, the reliable supply of electricity becomes increasingly critical. The successful completion of the Long Phú 1 project could provide a much-needed boost to the country's energy security and support its economic growth objectives.
Only time will tell whether this project will serve as a model for successfully restarting stalled mega-projects or continue to be a case study in project management challenges.