BOT agreement signed on January 18 for construction of thermal power plant in northern province.
On January 18 the General Directorate of Energy under the Ministry of Industry and Trade signed an investment agreement for the Nam Dinh 1 Thermal Power Plant in northern Nam Dinh province under the Build-Operate-Transfer (BOT) form.
The agreement was signed with a consortium of investors, including Taekwang Power and Aowa Power from South Korea. The 1,200 MW power plant, with total investment of over $2.2 billion, will be built in Hai Chau and Hai Ninh communes in Hai Hau district and use domestic coal from the Vietnam National Coal and Mineral Industries Group (Vinacomin).
The project will ensure electricity supply for the province and the northern region as well as national energy security.
Speaking at the signing ceremony, Minister Vu Huy Hoang said the project has a vital role in Vietnam’s power master plan. In addition, the Vietnam-South Korea Free Trade Agreement officially came into effect on December 20, 2015 and the signing ceremony is evidence of the greater strategic co-operation. He also asked the parties to quickly implement the project.
The province said it would facilitate the investors in granting investment licenses quickly, making financial arrangements, and conducting site clearance so the project can commence by the middle of this year.
The plant is expected to become operational by 2020.