S.Korean firm in $1.2-billion Vietnam power deal

A South Korean company has won a $1.2-billion contract to build a coal-fired power plant in energy-hungry Vietnam, one of the firms involved in the deal said Friday.

AES-VCM Mong Duong Power said it had awarded the engineering, procurement and construction deal to Doosan Heavy Industries and Construction at a signing ceremony in Seoul.

The plant in the northeastern province of Quang Ninh will be developed under a build-operate-transfer (BOT) framework, with commercial operation expected from the end of 2014.

“Mong Duong 2 is expected to be Vietnam’s first foreign invested coal-fired BOT project to be constructed,” said AES-VCM, an indirect affiliate of US-based power producer AES Corp, a Fortune 500 company.

State-owned minerals group Vinacomin has a minority stake in the 1,240 megawatt project.

The European Chamber of Commerce in Vietnam (Eurocham) has cited estimates that fast-growing Vietnam needs infrastructure investment of $120 billion over the next five to 10 years, much of it in the energy sector.

Vietnam draws more than one-third of its electricity from hydropower but suffers periodic blackouts and is trying to diversify its power sources.

In October the country signed a deal worth an estimated $5.6 billion with Russia for its first nuclear power facility. – AFP

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Posted by VBN on Dec 10 2010. Filed under Energy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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