Vietnam to approve US firm’s coal-fired power plant

The government said Monday it aims to license US utility firm AES Corp early next year to build a coal-fired power plant in northern Vietnam at an estimated cost of US$1.4 billion.

AES would form a joint venture with state-owned coal producer Vinacomin to operate the 1,200- megawatt plant, which will be located in Mong Duong in the coal hub province of Quang Ninh, a government directive said.

It quoted Deputy Prime Minister Hoang Trung Hai as saying the government aims to issue a license to the joint venture within the first quarter of next year.

AES Corp would invest up to 90 percent of the estimated cost while state-run coal mine operator Vinacomin would contribute the remaining 10 percent, the media has reported.

While dominant utility Electricity of Vietnam is the developer of the majority of Vietnam's power plants, Hanoi encourages both foreign and private local firms to invest to expand power generation capacity.

Reuters

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