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The government of Vietnam has approved the development of the Hon Khai island deepwater port public private partnership (PPP) project.
In January 2015 Bechtel and Van Phong Company signed a deal to conduct a feasibility study for the port PPP project. The study evaluates, among others, the demand for a coal import port at Hon Khoai.
The government will prepare the tender process for the project with construction works scheduled to begin in late 2016.
The port will be located 15 km off the southwest coast of Nam Can District, a rural district of Cà Mau Province in the Mekong Delta region of Vietnam. It will serve as a major transhipment point for fuels in the Mekong Delta where several thermal power plants are located.
According to the to Ca Mau Province's Department of Planning, the new 320 hectare deepwater port will include 12 transhipment berths. Six of these berths will be used for handling coal shipments, two for handling oil, two for handling containers and the remaining two will be used for handling commodities.
The total project investment is estimated at US$2.5 billion. According to sources, 85% of the total project investment could be financed with loans from the US Export-Import Bank.
A previous feasibility study for the project was conducted in September 2014 by the Vietnam Marine Administration in partnership with N&M Commodities. The Australian firm proposed building 24 piers at the port, with half of them able to handle 250,000-DWT vessels supplying coal to thermal power plants and the remainder used for other goods. The firm estimated the project would cost US$3.5 billion and take two years to complete.
We have recently reported on several port PPP projects globally