US$95 million invested into Vung Ang thermo electric power plant

Two Japanese partners have agreed to provide credit worth US$95 million for investment into the Vung Ang No. 1 thermo electric power plant.

The credit contract was signed in Hanoi on August 12 between the Vietnam National Oil and Gas Group (PVN), and Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Cooperation (SMBC).

JBIC will lend 60 percent of the total, with SMBC contributing the other 40 percent.

In his speech at the signing ceremony, PVN Deputy General Director Nguyen Tien Dung, said the loan is of great significance for ensuring construction is completed on schedule. The contract marked the first collaboration between the PVN and JBIC under the framework of the Memorandum of Understanding (MoU) signed in June last year, Dung said.

The PVN-invested Vung Ang No. 1 plant is the first coal-run thermo electric power project to be built in Ky Anh district in the central province of Ha Tinh. The project, being built at a total cost of US$1.6 billion, is designed to run two generators with a capacity of 1,200 MW.

The plant is set to put generator No. 1 into operation in July 2012 while generator No. 2 will become operational in early 2013. – VOV

Tags: Vung Ang thermo electric power plant