The General Directorate of Energy under the Ministry of Industry and Trade signed an investment agreement for the Nam Dinh 1 build-transfer-operation (BOT) thermal power plant in Ha Noi.
The BOT agreement was signed with a consortium of investors including Taekwang Power and Aowa Power.
It is intended that the plant would have two turbines with total capacity of 1200 MW in the northern Nam Dinh Province.
The US$2 billion project would use domestic coal from the Vietnam National Coal and Mineral Industries Group (Vinacomin).
It is reported that after eight years of negotiations and signings, the project could ensure electricity supply for the province and northern localities as well as national energy security.
Speaking at the signing ceremony, Daejoo Jun, South Korean ambassador to Viet Nam said this is the first project that sees the participation of a South Korean private firm. According to Jun, this was the reason for why the project would receive support from the government. He added that this could be an opportunity for South Korean businesses investing in Viet Nam.
Minister Vu Huy Hoang said the project has a vital role in the Viet Nam's power master plan 7.
The Viet Nam-South Korea Free Trade Agreement (FTA) officially came into effect on 20 December 2015.
The signing ceremony is evidence of the strategic co-operation, Hoang said.
The province intends to facilitate investors in granting the investment licence, financial arrangement and land clearance for the project's commencement by the middle of 2016 year.
The plant is expected to become operational by 2020. The General Directorate of Energy has negotiated 19 other BOT projects.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/power/29042016/investment-agreement-signed-for-nam-dinh-thermal-power-plant-693/