Vietnam is reportedly planning to start construction of the $2.2bn Vung Ang II coal-fired power plant in December 2021.
The project developer Vung Ang II Thermal Power LLC (VAPCO) has already completed procedures required to start construction, reported Reuters, citing a company spokesman and local media.
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Planned to be built in the Vung Ang district, Ha Tinh province, the Vung Ang II ultra-supercritical coal-fired power plant is owned by Mitsubishi and Korea Electric Power.
The 1,200MW project is due to start commercial operations in the third quarter of 2025, said a company spokesman to Vietnam Finance newspaper
Construction contractors involved in the project include South Korea’s Doosan Heavy Industries & Construction and Samsung C&T, among others.
Construction of the project is planned to start on 5 December 2021.
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By GlobalDataPower generated from the Vung Ang II plant is planned to be sold to state-owned power utility Vietnam Electricity (EVN) for 25 years.
The project is backed by a $636m financing from the Japan Bank for International Cooperation (JBIC).
The loan is co-financed by Export-Import Bank of Korea (KEXIM) and private financial institutions. The total co-financing amount for the project touches approximately $1.76bn.
Recently, Vietnam Deputy Prime Minister Le Van Thanh urged miners and relevant authorities to boost production of domestic coal to help reduce dependence on imports.
Earlier this month, Vietnam submitted a draft plan for approval from the prime minister for doubling the installed coal-fired electric generation capacity by 2030.
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The new power plant will be located in in the Vung Ang district. Credit: cwizner/Pixabay.
