The C47 Nam Phak Hydropower Project marks a significant milestone in regional energy development, driven by Construction Joint Stock Company 47 (HOSE: C47), an esteemed associate of Vu Phong Energy Group. On July 24, 2022, C47, in strategic collaboration with Song Da 5 Joint Stock Company, officially secured a pivotal contract for the construction of critical dam infrastructure—Nam Pha, Nam Phak, and Phouphong Dams—in the Lao People’s Democratic Republic. This substantial agreement not only exemplifies a robust strategic partnership but also underscores C47’s formidable expertise and capacity to execute large-scale international construction projects, reinforcing its position as a trusted leader in the hydropower infrastructure sector.
The Contract Signing and Construction of the Nam Phak Hydropower Project
During the signing ceremony, two distinct contracts were formalized. The first contract pertains to the construction of the Nam Pha Dam, situated within the Nam Phak, Phouphong area. The second covers the comprehensive design, coordination, and subsequent experimentation phases of the entire Nam Phak hydropower project. Collectively, these agreements represent a substantial C47 construction contract valued at approximately 800 billion VND, with an ambitious completion timeframe of 1,458 days, highlighting the scale of this international construction project.
This significant milestone follows more than a year of diligent negotiations between Construction Joint Stock Company 47 (C47) and Song Da 5 Joint Stock Company with the project investor. A key component of this construction contract involves the excavation of approximately 6 million cubic meters of earth and rock, a task that leverages one of C47’s core strengths and expertise. Given its proven track record and extensive capabilities in hydropower infrastructure, C47 is well-positioned to deliver this project with the highest standards of quality, efficiency, and on-schedule advancement.
The Significance of the Nam Phak Hydropower Project
The Nam Phak hydropower project significance extends to its strategic location and considerable capacity. With a total installed capacity of 128 MW, it is situated in the southwestern part of the Bolaven Plateau, approximately 10 kilometers southwest of Paksong in the southern region of the Lao People’s Democratic Republic. This location capitalizes on a substantial 700-meter elevation difference between the plateau and the southern plains. The project design integrates flows from numerous plateau streams, converging them into the Nam Pha reservoir via two main channels. This sophisticated scheme features two reservoirs and two power-generating facilities, with the larger plant positioned strategically along the banks of Houay Namphak, adjacent to the plateau cliffs, underscoring its role in Laos hydropower development.
The successful execution of this pivotal bidding package is paramount to the overall quality and longevity of the project. The selection process rigorously demanded a reputable and experienced construction contractor. C47, recognized as a long-established leader in the construction of irrigation, hydroelectric, civil, and industrial projects nationwide, met all stringent criteria for this significant hydropower infrastructure development, thereby solidifying its position and trust within the energy sector growth.
Representatives of the units congratulated the successful signing ceremony.
The Value of C47’s Contracts, Including the Nam Phak Hydropower Project
By July 2022, the aggregate value of contracts secured by C47 with investors and strategic partners had surpassed VND 1,200 billion. This impressive figure, including the C47 Nam Phak Hydropower Project, demonstrates the company’s robust performance and its integral role in major development initiatives. Significant projects contributing to this total include:
- Site preparation for Hoa Phat Dung Quat Complex 2
- Bridge construction for the Coastal Road of Binh Dinh Province Project (Cat Tien – Diem Van section)
- Infrastructure development at Becamex Binh Dinh Industrial Park
- Leveling operations for Long Thanh International Airport – Phase 1
- Ongoing work for Hoa Phat Dung Quat Steel Integrated Complex Project – Phase 2
The momentum continues as C47 actively engages in negotiations with investors and partners to broaden its scope of work and secure additional contracts and annexes for ongoing projects. This proactive strategy aims to maximize revenue and profitability, further contributing to the company’s energy sector growth. Looking ahead, C47 is vigorously pursuing new bidding opportunities and contract negotiations for projects estimated at approximately 5,000 billion VND for 2022-2023, ensuring a robust pipeline of work for years to come. In 2021 alone, C47 initiated construction on projects totaling nearly VND 2,000 billion, with scheduled completion by 2025. These include the Expanded Hoa Binh Hydropower Plant, Phu Phong Weir Dam, a wastewater collection system in Da Nang, and the Ta Hoet reservoir, showcasing C47’s diversified involvement in international construction projects and domestic infrastructure.
A corner of Hoa Phat Dung Quat Steel Integrated Complex Project – Phase 2.
C47’s Post-Pandemic Business Expansion and Future Outlook
Following nearly two challenging years impacted by the COVID-19 pandemic, C47’s hotel, restaurant, and travel services industry segments are experiencing a robust resurgence in 2022. The company fully owns a two-hotel system, comprising the 4-star Hai Au Hotel with 170 rooms and the 3-star Hai Au Bien Cuong Hotel with 80 rooms. This hospitality portfolio is complemented by the Hai Au restaurant system, and on-site Cafe & Bar facilities. Furthermore, C47 wholly owns Seagull Travel Service Company Limited, a prominent organizer of domestic and international tours catering to clients across numerous provinces and cities. This division projects revenues exceeding 100 billion VND for 2022, with an EBITDA of over 30 billion VND, significantly bolstering C47’s annual business performance and demonstrating strategic alliances in diversified markets.
Construction Joint Stock Company 47 (C47) stands as a prominent leader in Vietnam’s construction sector, specializing in irrigation, hydropower, civil, and industrial projects. The company boasts a portfolio of multi-trillion VND key projects consistently earning high praise from investors and governing bodies, solidifying its reputation for quality and reliability.
Beyond its core construction activities, C47 has strategically diversified its business segments. These include a thriving hospitality division encompassing restaurants, hotels, and travel services, along with operations in construction machinery overhaul, mechanical engineering product manufacturing, fresh and precast concrete production, labor training and export, and electricity generation. C47 also engages in testing structural concrete, and the exploitation and transportation of construction materials, showcasing its comprehensive operational capabilities.
In a forward-looking approach, C47 is actively expanding into new high-potential segments to progressively enhance its revenue streams. These emerging areas cover highway projects, anti-flood and anti-salinity initiatives, river and sea embankments, Metro projects, airport and port infrastructure development, and a strong focus on renewable power plant projects, alongside civil building, factory, and industrial park infrastructure. This strategic expansion aligns with global demands for sustainable development and energy sector growth.
Particularly in the renewable energy sector, C47 has forged significant partnerships. In 2021, C47, in collaboration with Vu Phong Energy Group and STEAG (Germany), signed a Memorandum of Understanding (MoU). This agreement aims to provide expert consulting services for the development and implementation of wind power projects across Vietnam, further highlighting C47’s commitment to clean energy and its further details on the contract signing and project overview.
Vu Phong Energy Group
