Song Bung 5 Hydropower Plant in the central Quang Nam Province. Photo courtesy of Power Engineering Consulting Jsc 1 (PECC1).
A Vietnam Electricity (EVN) unit will auction a loss-making hydropower plant for the fourth time after previous attempts failed to attract a single bidder.
The Power Engineering Consulting Jsc1 (PECC1) has approved the auction of its 57 MW Song Bung 5 Hydropower Plant in central Quang Nam Province at a starting price of VND1.39 trillion ($60.1 million). The auction is to be conducted at the end of this month.
It has auctioned the plant three times in recent years at a base price of up to VND1.69 trillion. Its initial investment was VND1.37 trillion.
The plant’s board said in a statement that lowering the price to market value increases the chance of a successful deal.
The plant, which began operations in 2012, posted a loss of over VND50 billion last year while missing its revenue target by 12 percent at VND85 billion.
PECC1 chairman Pham Nguyen Hung has explained the sale, saying the plant gets below market price rates for its power and is saddled with high debts.
The company, in which national utility EVN has more than a 54 percent stake, hopes to use the money earned from this deal to pay off its debts.