US finances Vietnam’s power project

VNGOVNet – The Ministry of Industry and the US Trade and Development Agency (US-TDA) signed in the morning of March 6 in Hanoi an agreement on nonrefundable grant worth of US$ 332,900 for the Mông Dương 2 Power Project.

March 07, 2007 8:44 AM GMT+7

Photo: VNGOVNet

The 1,000-MW Power Plant Mông Dương 2 located in Quảng Ninh Province was approved by the PM as a joint-venture between the American Energy Services Incorporation (AES) and the Vietnam Coal and Mineral Group under a Building-Operation-Transfer (BOT) investment project.

The project will be realized in 2007, with a total investment of US$ 1.2 billion. The concerned contracts and documents, including BOT contract, Purchased Power Adjustment (PPA), coal supply arrangement (CSA), Government Guarantees and Undertakings (GGU) Agreement, are now under negotiation and will be submitted to the Government for approval. The plant is expected to be put into operation in 2011-2012.

The Government allowed the Ministry of Industry to take over the non-refundable grant of US$ 332,900 from the US Government through US-TDA for legal, technical and financial consultancy in negotiations on the project contracts with the Investor.

Hoàng Nguyên