China will invest a whopping USD 1.75 billion in energy-hungry Vietnam to build a 1,200-MW thermal power plant that will help promote the neighbouring communist nation’s economic development.
Chinese enterprises will build the new units at Vinh Tan 1 thermal power plant in Vietnam’s southern Binh Thuan province, state-run People’s Daily reported. With a total investment of USD 1.75 billion, the contruction of the plant, reportedly the largest project in Vietnam operated by Chinese companies, is expected to be completed in four years.
It is a joint investment venture of China’s Southern Power Grid Company, China Power International Development Company (95 per cent of investment) and the Power Corporation under the Vietnam National Coal-Natural Industries Corporation.
The project includes two generating units, with each 600 megawatts. The first unit will be put into use by the end of 2018, and the second one will be operated six months later. The plant, which is constructed under the build-operate- transfer contract, will help increase the power supply, create jobs, promote economic development and improve people’s livelihood, said Hu Zucai, deputy director of the National Development and Reform Commission of China, before the opening ceremony of the construction of Vinh in Hanoi on July 18.
Vietnam is struggling to meet its increasing energy demand and has been cutting coal exports to save the fossil fuel for its use. In the first half of this year, Vietnam’s coal exports dipped an estimated 76.3 per cent from a year ago to 1.08 million tonnes.