Representatives of Vietnam's Ministry of Industry and Trade and investors sign the deal on Nam Dinh 1 Thermal Power Plant. (Photo: nangluongvietnam.vn)
A consortium of South Korea’s TaekWang and Saudi Arabia-incorporated Acwa Power and the Vietnamese Ministry of Industry and Trade on January 18 cut a deal to construct Nam Dinh 1 Thermal Power Plant in the northern province of Nam Dinh.
The plant, to be built under the Build-Operate-Transfer (BOT) format, will have two turbines with a combined capacity of 1,200MW and have an investment of over $2 billion. It will consume coal provided by Vietnam National Coal - Mineral Industries Holding Corporation (Vinacomin).
Its construction is slated for kick-off in mid-2016. Site clearance and resettlement will start once the project secures an investment license.
At a meeting with visiting Rajit Nanda, chief investment executive of Acwa Power, in September 2015, Vietnam’s Deputy Minister of Industry and Trade Hoang Quoc Vuong pledged to support the firm in boosting its presence in the country’s power market, including the possible purchase of shares of Vinacomin-Power Corporation.
State-run Electricity of Vietnam (EVN), the sole power distributor in the country, will need some 632 trillion dong ($28 billion) to develop its power infrastructure projects in the 2016-2020 period, up 28.5% from the previous five-year period.