The Korean and Vietnamese governments have accelerated efforts to cooperate on the construction of nuclear power plants in the Southeast Asian country.
Expectations are high “Team Korea,” headed by Korea Electric Power Corps., will win nuclear power plant orders from Vietnam.
Minister Ahn Duk-geun struck an MOU on cooperation in the nuclear power sector with his counterpart, Vietnamese Minister Nguyen Hong Dien, in Hanoi, on Aril 14.
Team Korea, comprising of KEPCO, Doosan Enerbility and Hyundai E&C, held a technology explanation session targeting the Vietnamese Ministry of Trade and Industry and nuclear power procurement companies.
Officials from Korea Eximbank and Korea Trade Insurance Corp. also participated in the session to promote the Korean government’s capabilities in offering financial support to project proponents.
The Vietnamese government announced the revision of the Power Development Project 8 (PDP8), calling for the inclusion of nuclear power to the country’s power generation resources last year. Vietnam decided to revive the Ninh Thuan 1 and 2 nuclear power plant projects it had pushed as Vietnam’s first nuclear project back in 2009.
At that time, the projects each called for two reactors — a combined four reactors with 4.8GW capacity.
RosAtom of Russia and Japan Atomic Power Company were selected as preferred negotiators for the nuclear power plant projects, worth $8.9 billion (12.7 trillion won), but the projects were cancelled after the nuclear disaster at Japan’s Fukushima Nuclear Power Plant, caused by a strong earthquake.
In 2011, KEPCO conducted a feasibility study for two nuclear power plants in Vietnam’s central region, apart from the Ninh Thuan 1 and 2 nuclear power plants.
At the time, the Korean state-run power company evaluated the economical, technology feasibility and site conditions of the APR-1400, the Korean next-generation pressurized water reactor (PWR) standard.
A Vietnamese government official said, “The Vietnamese parliament gave the go-ahead to the resumption of the Ninh Thuan 1 and 2 nuclear power plants projects, after the Vietnamese government announced the restart late last year, and the resumption of the nuclear power project in Vietnam’s central region will be known when the Vietnamese government comes up with the revision of its Power Development Project.”
If the Vietnamese government decides the restart of the nuclear power project in Vietnam’s central region based on the past feasibility study, expectations are high that KEPCO will be selected as the preferred negotiator of the project.
Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy poses with his counterpart Vietnamese Minister Nguyen Hong Dien after they signed an agreement during the Korean- Vietnamese Ministerial Meeting in Lotte Hotel in Sogong-dong, Seoul, on Feb. 25. (Photo: MOTIE)
At that time, the feasibility study involved the construction of two APR-1400s, each with 1.4 GW capacity. If Team Korea, led by KEPCO, wins, the value of the project is expected to stand at some 12 trillion won.
In consideration of the value of the Czech two APR-1000 units project in which Korea has been selected as the preferred negotiator, which was estimated at 24 trillion won, some industry analysts said the value of the nuclear power project in Vietnam’s central region was expected to surpass the value of the Czech project.
A Korean nuclear power industry official said KEPCO has solidified its presence in the Vietnamese power market and by operating the Nghi Son 2 Coal-fired power plant with a 1.2GW capacity and building the Bong Ahn 2 thermal power plant and the Vietnamese government’s reliability toward KEPCO is high.
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