Malaysian group signs deal with Chinese partner that should see delayed project get underway next year.
A deal over investing in a coal-fired power plant in Hai Duong province has been struck by JAKS Resources Bhd from Malaysia and China’s Power Engineering Consulting Group.
The investment capital for the power plant is $1.87 billion, with each side to contribute half. JAKS Resources is to be responsible for integrated water supply and other water related issues while the Chinese partner will provide technical consulting and financial support.
Located in Kinh Mon district in northern Hai Duong province and with a capacity of 1,200 MW, the power plant will be constructed under the build-operate-transfer (BOT) mode and was approved by the government in August 2011. The pace of the project is well behind schedule, however, having been originally planned to commence in 2014.
After finding a new partner JAKS Resources is now expected to the speed up the project, though it must still wait for approval from the Vietnamese and Chinese governments.
The group hopes to get construction underway in the first half of next year and complete it by 2020.
After operating it for 25 years JAKS will transfer the power plant to Vietnam. The group has already signed a deal to sell its electricity to Electricity of Vietnam (EVN) and the Vietnam National Coal - Mineral Industries Holding Corporation Limited (Vinacomin).