The Ministry of Industry and Trade has issued Document 4579/BCT-DL, dated July 1, 2024, announcing the termination of the BOT contract for the Song Hau 2 Thermal Power Project. The contract was signed between the Ministry of Industry and Trade, Toyo Ink Group Berhad (investor), and Song Hau 2 Power Company Limited (project enterprise) on December 29, 2020.
Song Hau 2 Power Company Limited is a wholly-owned subsidiary of Toyo Ink Group Berhad, a member of Toyo Ventures Holdings Berhad.
In an official statement, Toyo Ink Group Berhad said it is assessing the impact of this announcement and will seek legal advice to take appropriate remedial measures in accordance with the terms of the BOT contract. The company will provide continuous updates on any significant developments related to the project as it navigates through this phase.
In the 2023 annual report, Tuan Haji Ir. Yusoff Bin Daud, Chairman of Toyo Ventures Holdings Berhad, mentioned that the company had arranged financing for the project with credit support from EXIM-bank Malaysia. “We are doing everything to ensure the success of the Song Hau 2 Thermal Power Plant project. This is a historic project for the group. Toyo Ventures Holdings Berhad also received support from the China Energy Investment Corporation,” he shared in the annual report published in January 2024.
Memorandum of Understanding signing ceremony for the development of Song Hau 2 Thermal Power Project between the Ministry of Industry and Trade and Toyo Ink Berhad.
In a separate development, Construction Consulting Joint Stock Company 2, the EPC general contractor for the project, is facing significant impacts following this news. Specifically, TV2’s stock has fallen to its lowest point for the second consecutive session, trading at 40,450 VND per share. The sell volume at this price reached nearly 4 million units, representing more than 5% of the company’s capital.
Previously, TV2’s stock price had been on an upward trend from May 15, 2024, to June 10, 2024, increasing by 46% to a peak of 53,100 VND, despite a reminder about the potential suspension of the project. However, it has since entered a downward trend, closing at 43,400 VND on July 4 and falling further to 40,450 VND on July 5.
The Song Hau 2 Thermal Power Plant project, located in Chau Thanh district, Hau Giang province, is implemented by Toyo Ink Group as a BOT project. It covers an area of 116.61 hectares, with a designed capacity of 2,120MW and a total registered investment capital of 72,000 billion VND.
Nearly a decade ago, on August 1, 2013, Toyo Ink Group and the General Directorate of Energy (Ministry of Industry and Trade) signed a memorandum of understanding for the development of the Song Hau 2 Thermal Power Project as a BOT project. It was expected that the first unit of the project would be put into commercial operation in the second quarter of 2021, and the entire plant would be operational in the second quarter of 2022.
In December 2020, Toyo Ink Group also signed a BOT contract with the Ministry of Industry and Trade and a PPA with EVN for the Song Hau 2 project. However, the project has not completed compensation and resettlement support work. According to the Power Planning No. 8, the Song Hau 2 Thermal Power Plant is one of the five coal-fired power plants that are behind schedule and facing challenges in changing shareholders and arranging capital.
At the beginning of June 2024, Toyo Ink Group Berhad signed a loan agreement worth $980 million with Eximbank Malaysia for the Song Hau 2 Thermal Power Project to facilitate the project’s design, equipment procurement, construction, and operation.
The Great TV2 Stock Dump: Over 5 Million Shares Plummet as Ministry Scraps Strategic Project Contract
The morning session of July 4, 2024, witnessed an intriguing development as the shares of TV2, a consulting firm specializing in power construction, took center stage on the HOSE (Ho Chi Minh Stock Exchange). With a staggering over 5 million shares left unsold, TV2’s stock performance captivated the market, leaving investors and traders alike wondering about the reasons behind this unusual scenario.
The Great Fire Sale: A Tale of Unraveling Fortunes
The Song Hau 2 Thermal Power Plant project is an impressive undertaking by the renowned Toyo Ink Group, who are employing their expertise in a Build-Operate-Transfer (BOT) venture in Chau Thanh district.
