Vietnam signs $1.4 bln power-plant deal with AES Corp.

21 November 2006 — State-owned Vietnam Coal & Minerals Corp., or Vinacomin, has signed a contract with U.S.-based AES Corp. to build a 2,000 MW coal-fired power plant at a cost of $1.4 billion in Quang Ninh province, a Vinacomin official said. The province, rich in coal, is about 250 kilometers east of Hanoi.

This is the first and largest coal-fired plant to be built by a U.S. company in Vietnam and it is expected to start operating in 2010. The plant will be built under a build-operate-transfer contract in which investors build infrastructure, run it for a given period of time, then hand it over to the government.

Vinacomin will contribute 10 percent of the construction cost, while AES will contribute 90 percent. The plant is expected to consume 6 million tons of coal a year and would represent 17 percent of the current total power generation capacity in Vietnam.