Vitality on Nam Muc Hydropower Plant Construction Site

Dien Bien province is characterised by steep mountains and river systems; favourable conditions for the development of small and medium-sized hydropower plants. The economic crisis has drained off the capital of many investors; thus, many projects have been far behind schedule. Overcoming many difficulties, Nam Muc Hydropower Joint Stock Company kicked off the construction of river breakwater, a turning point for the project, on November 26, 2010.

 

Kicked off in December 2006, Nam Muc hydropower plant project encountered many difficulties. In the next few years, the project was implemented slowly, with separate bids for design drawings, site clearance, and road construction. The primary cause of this was the economic crisis coupled with financial market instability and investors’ inability to arrange capital.

 

In September 2009, Mr Nguyen Ky Quang was appointed Director of Nam Muc Hydropower Joint Stock Company. At that time, the project was a sea of trouble. The land compensation for site clearance was around the corner. Many managers and workers felt discouraged and applied for leave. By experience, he knew that he stood before a real challenge. Financial difficulties could be solved but the confidence of staff, local government and people are hard to regain once lost. To complete the project, the company’s management board and all employees had to show and prove their highest determination. One month before he was named the leader of the company, the project had been suspended by the governing People’s Committee of Dien Bien province. In June 2009, the province decided to resume the project and the Vietnam Bank for Investment and Development, Dien Bien Branch, also continued funding the project. On August 6, 2009, the company signed a credit agreement with BIDV, Dien Bien Branch, to borrow VND600 billion. Related organs in the province also joined to resolve difficulties facing the project.

 

At present, the Northern Power Corporation (EVN-NPC) is the largest shareholder of the Nam Muc hydropower project with 73.4 percent stake. The Board of Directors also decided to sign an EPC contract with Binh Minh Production Trading and Export Import Company (Bitexco). It also inked an electromechanics equipment supply, installation and testing agreement with Hua Dong Hydropower Research and Survey Institute, China; and signed a hydraulic equipment supply, installation and testing contract with Construction Machinery Corporation (COMA). Other contracts are being concluded in 2011. Mr Nguyen Ky Quang said singling out contractors is a key requirement for any hydropower project. A contract must have good operating and financial capacity.

 

On November 26, 2010, Nam Muc Hydropower Joint Stock Company and EPC contractor Bitexco started work on the first batch of river blockading in Muong Mun commune, Tuan Giao district, Dien Bien province, marking an important step for the Nam Muc hydropower project. The 44 MW hydropower plant, costing VND1,200 billion in total, is designed to generate 176.33 million kWh of electricity a year. By August 2011, the foundation work was basically completed. New items for plant construction and operation were also kicked off.

 

To keep the construction on schedule, the company had to overcome existing difficulties. Specifically, the 45 km of road from Tuan Giao Town to the construction site needed to be reinforced and expanded in narrow sections to bring equipment and materials to the site. As a nearby quarry has a small reserve and low quality, the company plans to sign new deals with quarrying companies for larger stone reserves.

 

The company is determined to start operating the first turbine in late 2012. This is an arduous but worthwhile journey, for commitments to be fulfilled for the honour of the company and the responsibility to the historic Dien Bien land.