A South Korean company has won a 1.2-billion-dollar 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 dollars 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 dollars with Russia for its first nuclear power facility.
S.Korean firm in 1.2-billion-dollar Vietnam power deal
A South Korean company has won a 1.2-billion-dollar contract to build a coal-fired power plant in Vietnam, one of the firms involved in the deal said.
Source: AFP
