A rendering of the Song Hau 2 Thermal Power Plant project.
Closing on July 5th, VT2 shares of Power Construction Consulting Joint Stock Company 2 fell to the floor, down 6.9% from the previous session to 40,450 VND per share, with 94,600 traded units.
This was the second floor session for VT2 shares, with prices falling 6.69% to 43,450 VND per share in the July 4th session, with more than 257,000 traded units.
Previously, from May 15th to June 10th, 2024, TV2 shares strongly attracted investors, with a 46% increase to a peak of 53,100 VND per share. Subsequently, TV2 shares entered a downward trend, with only one rising session out of the last 10 sessions (July 1st).
On July 4th, TV2 shares fell to the floor immediately after the Ministry of Industry and Trade announced to Song Hau 2 Power Company Limited about the termination of the BOT Contract for the Song Hau 2 Thermal Power Plant Project.
TV2 share price continues to “plunge”, lying on the floor in the last 2 consecutive sessions. Source: Cafef
The BOT Contract for the Song Hau 2 Thermal Power Plant Project was signed between the Ministry of Industry and Trade and Toyo Ink Group Berhad (investor) and Song Hau 2 Power Company Limited (project enterprise) on December 29, 2020.
According to Clause 23.2 (b) of the BOT Contract, the Ministry of Industry and Trade issued Document No. 7756/BCT-DL dated December 2, 2022, notifying Song Hau 2 Power Company Limited of its failure to comply with an important clause of the BOT Contract by not achieving Financial Close on the Mandatory Financial Close Date as stipulated in the BOT Contract.
As Song Hau 2 Power Company Limited has not been able to resolve the financial arrangement within the time limit specified in Clause 23.2 (b) of the BOT Contract, this has constituted a “Project Developer Breach” as per Clause 23.2 of the BOT Contract.
On November 9, 2023, the Ministry of Industry and Trade issued Document No. 7921/BCT-DL to Toyo Ink Group Berhad and Song Hau 2 Power Company Limited regarding the timing and conditions for resolving the financial arrangement for the Project.
According to Clause 23.4 of the BOT Contract and following Document No. 7921/BCT-DL, the Ministry of Industry and Trade issued Document No. 2109/BCT-DDL dated April 1, 2024, notifying Song Hau 2 Power Company Limited of the “Project Developer Breach” and the intention to terminate the BOT Contract.
After the expiry of 90 days from the date of issuance of the “Notice of Intention to Terminate” by the Ministry of Industry and Trade, Song Hau 2 Power Company Limited still failed to resolve the financial arrangement for the Project.
Therefore, in accordance with Clause 23.4 of the BOT Contract, the Ministry of Industry and Trade also officially notified Song Hau 2 Power Company Limited of the termination of the BOT Contract for the Project.
In the Song Hau 2 Thermal Power Plant BOT Project, Power Construction Consulting Joint Stock Company 2 (HoSE: TV2) is the EPC general contractor. This project was once expected to start in early July 2024, contributing a total revenue of VND 26,500 billion in the period of 2024 – 2028 for TV2, equivalent to 70% of the company’s total revenue in this period.
The Song Hau 2 Thermal Power Plant was assigned by the Government to Toyo Ink Berhad to implement under the Build-Operate-Transfer (BOT) form in March 2013.
The project has a capacity of 2,120 MW, consisting of 2 units, using super-critical parameter steam technology with imported coal as the input fuel.
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.
The City of Ho Chi Minh Ends Contract with Investor for the BOT Road Project Connecting Vo Van Kiet Street
The project, a collaborative effort between Yen Khanh Joint Stock Group Corporation (as investors) and BOT TP Ho Chi Minh – Trung Luong One-Member Limited Company (as the project enterprise), commenced in 2015.
