New Vietnam law threatens to delay major coal projects - think tank
A new law in Vietnam could delay four major coal-fired power projects worth a combined $9.1 billion, a U.S.-based think tank said on Tuesday, as the Southeast Asian country looks to up the amount of energy it generates from renewable sources.
The Institute for Energy Economics and Financial Analysis (IEEFA) said Vietnam’s revised law on public-private partnerships could affect the Nam Dinh 1, Vung Ang 2, Vinh Tan 3 and Song Hau 2, coal projects, which each have a capacity of 1.2 to 2.0 gigawatts.
The new law, IEEFA said, lacks clear provisions for sovereign guarantees, introduces more rigid requirements for contracts and makes Vietnamese law mandatory as the governing law, all of which could create hurdles for foreign lenders and investors.
The law, which comes into effect from January next year, will put particular pressure on Japanese and South Korean investors who are already pushing hard to close deals, as their governments and global financial institutions signal an accelerated exit from fossil fuel investments, the report said.
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