Following the first wind power project in Binh Dinh – Phuong Mai 3 Wind Power Plant, which came into operation since 2020, Halcom Vietnam JSC. expects to start the construction of Clean Water Supply System in Nhon Hoi Economic Zone Project in July, 2021
The project is executed on a total area of 4.9 ha (only the plant part). The project includes 3 phases: Phase 1 (2020-2025) with the capacity of 20,000m3/day; Phase 2 (2026-2030) with the capacity increase to 50,000m3/day; and Phase 3 (after 2030, depending on actual demand) with the capacity increase to 100,000m3/day.
Total estimated investment in phase 1 is nearly 300 billion VND. The project’s internal rate of return is about 26%, the payback period is 10 years. The project duration is 48 years. Loan is expected to be 70% in 12 years (2 years with grace period for principal payment) with an average interest rate of 10%, cost of equity 12%. Halcom is also approaching international banks to reduce the average loan interest rate to about 6% along with the province’s preferential investment cost support. Then the project will have better financial performance. Several European investment funds and a large domestic corporation are also negotiating to develop the project.
The water plant in Nhon Hoi Economic Zone is expected to operate and produce water from the 3rd quarter of 2022. This will supply water for industrial, commercial and service purposes for the entire economic zone to meet the development planning of forming new industrial zones, large-scale eco-tourism area, concentrated urban residential area of the area. The construction of a new water supply system like this is very necessary to meet the water demand in the region, when the supply of clean water for Nhon Hoi economic zone by 2030 will be short of about 41,000-52,000m³/day, and by 2040, there will be a shortage of about 63,000-79,000m³/day with an estimated population size of 200,000-250,000 people in 2040.
The detailed construction planning of 1/500 scale of the water supply system of Nhon Hoi economic zone by the investor was approved according to Decision No. 3787/QD-UBND dated October 11, 2017 of the People’s Committee of Binh Dinh province. This aims to the goal of gradually building complete technical infrastructure of Nhon Hoi economic zone in accordance with the approved plan, connecting the water supply system in the area to serve the projects that have been and will be implemented in the future, creating conditions to attract investment and deploying construction for projects in the economic zone and at the same time, contributing to speeding up the implementation of the General Plan of Nhon Hoi Economic Zone, the approved Construction Master Plan of Quy Nhon City and its vicinity until 2035, with a vision to 2050.
The project will exploit the surface water of Dai An river, a tributary of the Kon river with a basin of more than 3,000 km2, 178 km long with sufficient abundant reserves to meet the demand for water exploitation for the project. This is also a source of water that meets the clean water standards of the Ministry of Health after being treated.
The clean water supply system in Nhon Hoi Economic Zone uses clean water treatment technology to ensure the output meets the QCVN 02:2009/BYT standard on domestic water quality that’s offered by the leading experts on clean water in Finland. The project also approved an environmental monitoring program to ensure control of environmental standards based on the approved DTM report.
Mr. Nguyen Quang Huan, Chairman of the Board of Directors of Halcom Vietnam JSC, the investor of the clean water supply system project in Nhon Hoi Economic Zone
Mr. Nguyen Quang Huan, Chairman of the Board of Directors of Halcom Vietnam JSC stressed, “The implementation of the Water Supply System in Nhon Hoi Economic Zone Project will make an important contribution to promoting economic, social and infrastructure development and attracting investors to the economic zone, creating more jobs and increasing revenue for the local budget. It addresses the urgent needs of water use, which are seriously lacking in the service areas and fully meet the needs of people in the area for safe water and sanitation, creates a basis for meeting the needs of the people in the area and supports the socio-economic development of Nhon Hoi EZ in particular and Binh Dinh province in general. At the same time, the project brings reasonable and sustainable financial efficiency to investors. This is also the sustainable development goal that Halcom Vietnam always aim for. We look forward to continuing to receive continuous support and facilitation from the Economic Zone Management Board and Binh Dinh provincial authorities, such as the Phuong Mai 3 wind power project that has been operated, in order for the project to be completed on schedule, meeting the local demand for clean water”.