AES-VCM
Mong Duong Power, a joint investment between US’ AES Corporation (51 per cent),
Korea’s Posco Power Corporation (30 per cent) and China’s Investment
Corporation of China (19 per cent), kicked-off its coal-fired power plant Mong
Duong 2 in northern Quang Ninh province.
This coal-fired plant, which will comply with
the Vietnam and World Bank environmental standards, has a net designed capacity
of 1,120 megawatts with two units of net 560MW each and is expected to produce
approximately 7.6 billion kilowatt per hours annually once fully operational in
2015.
The independent power producer plans to pump
approximately $2 billion into this project, which is invested under a
build-operate-transfer (BOT) contract with the Vietnamese government. AES Corporation
announced that commercial operation of the power facility would start in
mid-2015. This plant will be transferred to the government after 25 years of
operation.
“This extremely important milestone shows how
dedication, hard work and strong cooperation can bring historic results.
Through this project, we look forward to making a sustained contribution to
Vietnam’s economic growth,” said Paul Hanrahan, president and chief executive
officer of the AES Corporation.
AES Corporation estimates about 5,000 local
jobs will be created during the peak time of construction. Once the plant is
operational, it will directly employ approximately 200 employees on a long-term
basis, the majority of whom will be Vietnamese.
Mong Duong 2 is the second thermal power plant,
wholly invested by a foreign investor, has broken ground over the past two
weeks, also among the four foreign-invested BOT power plants in Vietnam. On
September 9, Malaysia’s Jaks Resources also kicked-off infrastructure work of
its $2.25 billion thermal power plant in Hai Duong province.
Once operational, these two power plants will
significantly contribute to ease existing power shortages in Vietnam.
During 2006-2010, electricity consumption grew
14 per cent on average, the highest growth in South East Asia , according the
Ministry of Industry and Trade. Vietnam's power demand is set to rise by 12 per
cent annually over the next 10 years, according to the government’s electricity
master plan VII.
The high consumption growth, in line with the
slow construction of new power generation projects, put Vietnam into a severe
power shortage. This has been forcing Electricity of Vietnam, the country’s
sole power distributor, to cut off electricity in shift for three two years.
Nhu Ngoc | vir.com.vn
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