Groundbreaking Ceremony of 110kV Ha Tien - Phu Quoc Undersea Cable Project

This is the most complex and longest project in Southeast Asia with an investment capital of nearly 2,336 billion VND, the first time it has been implemented in Vietnam.

The 110kV Ha Tien - Phu Quoc submarine cable project was started by the Southern Power Corporation on the morning of November 17 in Ham Ninh commune, Phu Quoc district, Kien Giang province.

This is the final project in the investment project to bring national grid electricity from the mainland to Phu Quoc island by 110kV submarine cable.

Mr. Vu Huy Hoang - Minister of Industry and Trade said that this is the most complex and longest project in Southeast Asia with an investment capital of nearly 2,336 billion VND, the first time it has been implemented in Vietnam.

"The 110kV Ha Tien - Phu Quoc submarine cable project not only contributes to promoting the economy and improving people's spiritual life, but also contributes to maintaining national sovereignty and ensuring national defense and security," Mr. Vu Huy Hoang emphasized.

According to the commitment of the contractor Prysmian Powerlink SRL, the installation of the submarine cable and connection will be completed on January 13, 2014. It is expected that the power can be turned on during the Lunar New Year 2014, ensuring a stable power supply for Phu Quoc in the context of high demand that diesel generators cannot meet.

From then on, Phu Quoc residents will only have to pay the same price for electricity as on the mainland, about 1,508.85 VND/kWh, which is 1/3 of the price currently paid from the Phu Quoc diesel plant, averaging 5,060 VND/kWh. The electricity industry will also save on compensation for losses due to oil-based electricity generation.

Mr. Nguyen Thanh Duy - General Director of Southern Electricity Company said that in 2012, the electricity industry had to compensate for a loss of 157 billion VND, in 2013 it is expected to compensate for a loss of about 200 billion VND due to oil-fired power generation in Phu Quoc.

Despite the high average electricity price, only 88% of households in Phu Quoc currently use electricity from on-site diesel sources managed by the electricity industry, while the rest have to buy their own generators.

Meanwhile, according to the plan, in the next 10 years, Phu Quoc tourist island will welcome 2-3 million visitors per year. The demand for electricity consumption on Phu Quoc island will therefore increase rapidly; from now until 2015 it will be 1,386 kWh/person/year, in 2020 it will be 2,614 kWh/person/year, by 2030 it will be about more than 4,200 kWh/person/year.

Therefore, the 110kV Ha Tien - Phu Quoc submarine cable project not only ensures sufficient electricity supply, promotes socio-economic development, national security and defense, and contributes to quickly making Phu Quoc the Pearl of Vietnam, according to Mr. Le Van Thi - Chairman of the People's Committee of Kien Giang province: "When the project is completed, electricity from the national grid will be spread to Phu Quoc, which is an important and indispensable boost for Phu Quoc to take off as well as making Phu Quoc closer to the mainland, and certainly the Pearl Island will truly be an ideal destination for tourists. The project also contributes to protecting and improving the environment of the island district, enhancing competitiveness, making Phu Quoc an important economic zone, a high-quality tourist area of ​​the country... This is not only the joy of the people but also good news for investors in Phu Quoc".

According to Mr. Huynh Quang Hung, Vice Chairman of Phu Quoc District People's Committee, in the past two to three years, many investors have implemented large projects and works on the island district, especially in the tourism sector, which always requires a stable power source, but frequent power shortages have caused great obstacles, slowing down the construction progress. Therefore, when there is a stable national power source, the district will attract more investors; hotels and resorts will have more conditions for production and business and improve the quality of tourism services.

“If the power source from the national grid increases, Phu Quoc’s growth will increase significantly. Some investors have planned to wait for electricity to increase investment in expanding rooms and attracting tourists to Phu Quoc,” said Mr. Hung.

Currently, according to some hotel and resort owners in Phu Quoc, the cost of electricity is about 9,000 VND/kWh from purchasing electricity and separate generators, accounting for 40 to 42% of the room price. Mr. Pham Xuan Hai - Deputy Director of Saigon - Phu Quoc Joint Stock Company, estimated that with a scale of 98 rooms, the company has to spend from 900 million to 1 billion VND on electricity every month. This has greatly limited the development and expansion of tourism facilities, services and people's lives.

Currently, Phu Quoc island district still has 4 communes: Ganh Dau, Bai Thom, Hon Thom, Tho Chau without grid electricity. Here, many households have pooled together to buy gasoline generators and only dare to keep the lights on until 9pm, but still have to pay an average cost of 600,000 - 800,000 VND/month/household.

Therefore, when they learned that the national grid project was coming to Phu Quoc, the people were very happy and excited. Because soon they would be able to relieve their "electricity thirst" for many years.

By 2014, when the 110 kV Ha Tien - Phu Quoc underground cable project is completed and energized, 95% of households on Phu Quoc island will be able to use national grid electricity at the same price as on the mainland.

Ms. Nguyen Thi Hong in Bai Thom commune said she will buy electronic appliances such as washing machines, televisions, and refrigerators to use when the national grid is available. These are household appliances that she never thought of when she had to use electricity at a price of 20,000 - 25,000 VND/kWh.

Previously, Co To island district (Quang Ninh province) had grid electricity, soon Ly Son island district (Quang Ngai province), Kien Hai (Kien Giang province) and in early 2014, Southern Power Corporation will take over electricity management in Con Dao.

Thus, by 2014, Vietnam Electricity Group will manage the power grid in 10/12 island districts of the country. In particular, Southern Power Corporation alone will complete the delivery of electricity to 100% of island districts in the management area, creating important conditions to promote socio-economic development, improve people's lives, demonstrate its responsible role and contribute effectively to maintaining the sovereignty of the sacred sea and island areas of the Fatherland.

According to VOV