Korean Daewoo E&C has picked Phuoc Vinh Dong commune in the southern province of Long An as the site to construct its proposed $2.7 billion coal-fired thermal power plant.
The decision was announced at a recent working session with the leaders of Long An.
The reason for choosing Phuoc Vinh Dong commune was its proximity to 500kV line and the traffic infrastructure’s suitability for importing coal.
The project will be developed under the build-operate-transfer (BOT) model. The plant is expected to start operation by 2020, with an output capacity of 1,320 megawatts.
Pham Van Ranh, Chairman of the Long An People’s Committee, said that the province appreciated the group’s investment plan, however, it wants to ensure the priority of the environment above all. Thus, the investor has to apply modern technologies to power its manufacturing to avoiding environmental pollution.
Founded in 1973 in Seoul, Daewoo E&C is a leading global player in construction engineering.
In the field of power trading, Daewoo E&C has implemented 50 conventional thermal power stations, gas-fired plants, and tidal, hydroelectric, and nuclear power plants, with a total capacity of 30,000MW across Asia, Africa, and the Middle East.
This year, numerous foreign enterprises came to Vietnam seeking investment opportunities and signing cooperation deals.
Notably, in February, Thai Outgrow Energy Consult visited the central province of Thua Thien-Hue to seek a cooperation deal in the power sector. The company wants to build a thermal power plant fired by municipal solid waste.
Outgrow Energy Consult’s power plant investment have a total capacity of around 1,000MW, all gained from renewable resources like wind, solar power, geothermal energy, and solid waste.
In March, the Thua Thien-Hue People’s Committee and Thai Banpu Public Company Limited (Banpu) signed a memorandum of understanding to develop a 1,200\MW thermal power plant in Phong Dien district.
In early July, Thai EGAT International Co., Ltd. proposed the authorities to accelerate the evaluation of Quang Ngai thermal power plant’s pre-feasibility study, so that the investor can complete other procedures earlier.
According to the Ministry of Industry and Trade, Vietnam needs to secure an additional 36,000MW generated from thermal power plants by 2020, to ensure the nation’s power security. The growing demand for power supply is encouraging more and more foreign power companies to invest in Vietnam.
This year, the Vietnamese energy sector is expected to be the next driver for foreign direct investment (FDI) growth in the country. Industry insiders predicted that the FDI commitment level in this sector would touch a record high of $4-$5 billion in 2016.