The transfer aims to reduce pressure on the group to arrange the necessary capital, in order to focus on other major State-owned coal, oil and gas projects, PetroVietnam said.

In September 2017, the Ministry of Industry and Trade had requested the Prime Minister reduce pressure on PVN regarding investment capital in several key thermal power projects including Long Phu 3, Nhon Trach 3 and Nhon Trach 4.

Should PV Power choose to contribute 100 per cent of owner’s equity in the two projects, it will have to mobilise VND2.39 trillion ($106.4 million) worth of development investment funds, while divesting up to VND4.6 trillion ($204.8 million) from its subsidiaries and increasing its chartered capital via additional share issuances in the next three years, up to VND2.9 trillion ($129.1 million).

This is an increase from PVN’s previous plan to mobilise around 30 per cent of the estimated owner capital, at VND9.9 trillion ($440 million), and take out loans worth about VND23.3 trillion ($1.03 billion) for the rest.

With an estimated total investment of VND33.3 trillion (US$1.48 billion), the two liquid natural gas-fuelled power plants have a yearly capacity of 750-800MW each. They are set to be operational by 2020.

PV Power also hinted at entering a joint venture with other investors, holding 51 per cent of total equity.

However, according to the Ministry of Industry and Trade, the establishment of a joint stock company may mean delayed construction, hindering the objective of providing power for Southern regions.

PV Power has a charter capital of VND21.7 trillion, currently operating eight power plants nationwide with a combined annual capacity of 4,208 MW.