Upon signing the novated EPC Contract “Engineering, Procurement and Construction” – Nam Neun 1 Hydropower Project on July 11, 2024. The Joint Venture (JV) Contractor led by Construction Joint Stock Company 47 (HOSE: C47) promptly carried out the preparatory work for soon construction of the project.

Nam Neun 1 Hydropower Project is built in Ban Phianghong, Muang Nonghet, Xiangkhouang Province, Lao PDR, invested by Nam Neun 1 Hydropower Co., Ltd. The project consists of 2 units, with total capacity of 124 MW. As per the signed contract, the construction period is 48 months, the project is expected to be completed in the third Quarter of 2028 and export electricity to Vietnam.

According to the signed EPC contract, the JV Contractor will execute the following tasks: Site Survey, Design; Construction of the Work Items (Main Dam, Spillway, Headrace Tunnel, Penstock, Powerhouse, Switchyard, Cofferdams, Quarries, etc.), and procurement and installation of various equipment.

With the extensive construction experience and capacity for many key national projects such as: Dong Nai 4 Hydropower Project (Dak Nong Province), Da Nhim Hydropower Plant Expansion Project (Lam Dong and Ninh Thuan Provinces), Thuong Kon Tum Hydropower Project (Kon Tum Province), Trung Son Hydropower Project (Thanh Hoa Province), Bac Ai Pumped-Storage Hydropower Project (Phase 1), and RCC Dam Projects of Tan My Irrigation System (Ninh Thuan Province), Dinh Binh Reservoir, Dong Mit Reservoir (Binh Dinh Province), Nuoc Trong Reservoir (Quang Ngai Province), etc. C47 has fully mastered construction technologies, experienced staffs and modern equipment to organize the construction ensured the project schedule.

Nam Neun 1 Hydropower Project is a large-scale and crucial project for the Owner, with strict requirements on the quality and construction progress, so the JV Contractor is required for construction organization in scientific, methodical, urgent and highly responsible manner. Therefore, completing the project on schedule is the top target that the JV Contractor and experts of the JV Members are aiming for.

On July 11, 2024, in Vientiane Capital, Lao PDR, after the contract negotiation process, Nam Neun 1 Hydropower Sole Co., Ltd (Project Owner) and the Contractor Consortium, leaded by Construction Joint Stock Company 47 (HOSE: C47) and Power Engineering Consulting Joint Stock Company 3 (PECC3) entering into and signing the novated EPC Contract for “Engineering, Procurement and Construction” of Nam Neun 1 Hydropower Project, with total value of USD184,999,999.

Nam Neun 1 hydropower project is a large-scale project with the strict construction requirements and high responsibility of the internationally-sized contractor. The Powerhouse includes 2 units, with total capacity of 124MW to be bult in Phianghong village, Nonghet district, Xiengkhuang province, Lao PDR.

Over nearly 50 years of establishment and development, C47 is a nationally leading unit on the construction of irrigation and hydropower works. C47 has executed a hundred of large and small works in Vietnam, especially the national impotant projects such as Trung Son Hydropower Project, 260MW (Thanh Hoa province), Da Nhim Hydropower Plant Expansion Project, 80MW (Lam Dong province), Thuong Kon Tum Hydropower Project, 220MW (Kon Tum province) and so on. All projects were undetaken by us ensured on the timely progress and good quality which highly appreciated by the Government, the Central Ministries and the Employers.

Besides of Nam Neun 1 Hydropower Project, C47 is currently ongoing execution of Hoa Binh Hydropower Expansion Project, 480MW (Hoa Binh province) and Nam Phak Hydropower Project (Champassak province, Laos), 128MW, etc. At the same time, C47 is also undertaking the construction of key water-dam projects such as: Phu Phong Dam Project, Tan An – Dap Da irrigation system (Binh Dinh province), Ta Hoet Dam Project, Ka Zam Dam Project (Lam Dong province) and so on.

By signing and receiving the EPC Contract for Nam Neun 1 Hydropower Project, C47 continues to affirm its position, capacity, reputation, and professionalism in management, operation, and construction of domestic and international hydropower and irrigation projects.

As of date, the work items under Nam Phak Hydropower Project, Lao PDR are being constructed by Construction Joint Stock Company 47 (HOSE: C47) with the highest determination, ensuring the project progress as well as quality. Some work items have been constructed ahead of the 2024 projected milestones.

Mr. Vo Manh Hung – Deputy Site Manager of Nam Phak Project reported that, until now, the foundation excavation work have been executed by C47, reaching 80% of volume for Nam Phak dam and 99% of volume for Nam Pha dam. As of date, C47 has excavated with a total of more than 2,480,000 m3 of soil and rock in all kinds. For Nam Pha dam, is currently transfering into the phase of dam filling work, C47 has filled more than 100,000 m3 of rocks in all kinds, ensuring the requirements of the construction schedule.

To speed up the project progress, C47 has reviewed, consolidated and arranged the qualified, experienced and certified personnel to operate the construction work at the project site. In addition, the quality management was also given special attention by C47, in particular has established the site quality control team to ensure the project to be carried out according to the required plan, the construction progress, and meeting the technical and safety standards.

Nam Phak Hydropower Project is a high-level professional project, with complicated terrain and geology, but thanks to the timely direction of the C47’s BOD, along with the cohesion and tireless efforts of team of experienced engineers, skilled workers and enthusiastic labours along with a new, modern and synchronous construction equipment line has accelerated the project progress, ensure the works safety and quality.

Nam Phak Hydropower Project has total installed capacity of 128MW, located in the southern of Lao PDR. Taking advantage of 700m height variation between the plateau and the plain to the south, the project will gather some of water flows on the plateau in the northwest, southwest directions and transfer through two river flows to Nam Pha reservoir. The preferred scheme includes two reservoirs and two power generation facilities, the larger of which is located on the Houay Namphak bank at the cliff foot of the plateau.

At present, the weather in Laos is in rainy season, which is favorable for the rock filling work. Therefore, C47 is focusing on manpower and equipment, coordinating with the project contractors, trying to accelerate the construction of Nam Pha dam filling plan to ensure the overall schedule of the project.

On April 28, 2024, at the 11th floor Hall, Building C47 – Hai Au Bien Cuong Hotel, No. 8 Bien Cuong Str., Quy Nhon City, Binh Dinh Province, Construction Joint Stock Company 47 (HOSE: C47) held 2024 Annual General Meeting of Shareholders. Attending the meeting were 39 delegates who owned and were authorized to represent 18,919,741 voting shares, accounting for 52.06% of total number of voting shares.

The General Meeting listened to the Board of Directors’ (BOD) Operating Report, BOD’s Independent Member’s Operating Report in Audit Committee in 2023 and the 2024 Operating Plan; and the BOD’s proposals to the General Meeting of Shareholders.

Chairman Pham Nam Phong speaking at the General Meeting: In 2023, the overall economy background faced many difficulties, inflation and tight banking credit, disbursement and payment of the outstanding debts from the clients for some projects were slow, affecting the cash flow to implement the production plan. The BOD always closely followed the actual situation, production and business conditions, flexibly and promptly responded to the Company’s production activities at each stage, to ensure the progress and construction quality of key projects such as: Hoa Binh Hydropower Plant Expansion Project (Hoa Binh province); Phu Phong Dam Project, Tan An – Dap Da Irrigation System Project, Cat Tien – Diem Van Coastal Road Section Project, Becamex VSIP Binh Dinh (Binh Dinh province); Hoa Phat Dung Quat 2 Iron and Steel Complex Project (Quang Ngai province); Nam Phak Hydropower Project, Thaco-Agri Complex Project; Nam Neun 1 Hydropower Project (Lao PDR). Besides the construction field, the Hospitality – Tourism – Travel Service sector of the Company is also affected by the domestic and global economy difficulties, so number of tourists also lower than 2022. However, with timely direction and flexible adaptation policies of the BOD, Hai Au Hotels system also ensured stable growth. In 2023, C47 recorded total revenue of VND 1,000.8 billion, increased 25.9% higher than 2022 and reaching 100.1% of the plan as per the Resolution of the 2023 Annual General Meeting of Shareholders.

In the 2024 production and business plan orientation, C47 sets a target of total revenue of VND 1,000 billion, after-tax profit of VND 25 billion and a minimum dividend payout ratio of 5%, paid in cash or shares. C47’s core business is still the construction of domestic and international irrigation and hydropower projects and works. At the same time, C47 also promotes the development of domestic and international hotel, restaurant, and travel services to increase revenue and profit to ensure the harmony of interests of shareholders, investors and the Company in 2024 and the following years.

At the meeting, the General Meeting of Shareholders approved important contents such as: Audited financial statements for 2023; profit distribution and dividend payment for 2023; business plan for 2024; selection of an auditing unit to review semi-annual financial statements and audit financial statements for 2024; salary payment plan for the Board of Directors in 2023 and operating expenses in 2024; plan to offer shares to increase charter capital, the expected maximum number of shares offered is 30,000,000 shares; additional business lines; amendment of the Company’s charter, with an approval rate of more than 90.6%.

In addition, the C47’s BOD also submitted to the General Meeting of Shareholders the proposal to elect additional BOD members for 2020-2025 term as required in written by a group of shareholders holding 10.5% of C47 shares. Through voting results at the General Meeting with 14,604,648 voting shares, accounting for 77.807% of total voting shares which were not in approval. Thus, the C47’s BOD for 2020-2025 term is still 8 members.

At the 2024 Annual General Meeting of Shareholders, the shareholders highly appreciated the C47’s efforts, and expressed their desire continuing to support and assign the BOD and the Management Board to be proactive in management and operation, contributing to C47’s development and bringing practical benefits to shareholders, investors and employees.

Hoa Binh Hydropower Plant Expansion Project is built on right bank of the existing Hoa Binh Hydropower Dam. The power plant is located in Phuong Lam Ward, the intake and inlet canal are in Thai Binh, Phuong Lam, Thai Thinh Wards, Hoa Binh City, Hoa Binh Province. This is a special project approved by the Prime Minister in the Decision No.389/TTg-CN dated April 11, 2018. The project is of important significance in increasing the peak power generation capacity, improving the power regulation ability and stabilizing the frequency of the national power system, creating conditions for maximum exploitation of the annual surplus water discharged during the flood season of the existing Hoa Binh Hydropower Plant.

The project was commenced on January 10, 2021. Up to now, a lot of important project work items have been focused on by the Contractors with the highest determination, ensuring the progress and quality. In Package 01XL-HB “Construction and installation of Hoa Binh Hydropower Plant Expansion”, the largest package of the entire project costed more than VND3,100 billion undertaken by the Joint Venture of Truong Son Construction Corporation – Construction Joint Stock Company 47 (HOSE: C47) – Lilama 10 Joint Stock Company. In which, C47 undertaken construction work of the underground items including: Auxiliary Tunnel; Headrace Tunnel; Expanded Drainage Tunnel, New Drainage Tunnel and Vertical Shaft, etc.

With extensive construction capacity, along with an experienced team of staffs, engineers and workers, C47 has overcome difficulties, strived to speed up the construction progress, completed the important items such as the expanded drainage tunnel (reached 141.46m/141.46m); Auxiliary tunnel (reached 461m/461m), etc.; In addition, other work items also ensured the required schedule such as: Excavation of crowns of Headrace Tunnel No.1, No.2 reached 92%, excavation of foundation of Headrace Tunnel No.1, No.2 reached 52%; Excavation of Shaft No.1, No.2 reached 55%, etc. with excavation volume of more than 740,138 m3 of various types of soil and rock, shotcreting for tunnel support reached 27,950 m2, concreting more than 16,281 m3 and 890 tons of various steel.

2024 is the year determines the project progress, C47 has mobilized all manpower and machineries, accelerated the construction progress to soon complete the project target in 2024 such as: For Vertical Shaft item, complete excavation work in April and concrete work in November; For Headrace Tunnel, complete excavation work in May to move on to the tunnel lining concrete work.

Hoa Binh Hydropower Plant Expansion Project with total investment cost more than VND9,200 billion, installed capacity of 480 MW, the Employer is Electricity of Vietnam (EVN), and Power Project Management Board 1 as the Employer’s representative. Expected the Unit 1 will be generated in June 2025, the Unit 2 in July 2025, and the whole project will be completed in August 2025. Once completed, the Power Plant expected to annually supply around 500 million kWh to the national power system.