AES gets financing for key Vietnam power plant project
AES has closed two deals to ensure financing for a 1,200 megawatt MW thermoelectric power plant project in Vietnam.
The American corporation has sold 30 and 19 per cent stakes in AES-VCM Mong Duong Power Co. Ltd to South Korea’s Posco Power Corp and China Investment Company of China. The agreements were signed in Seoul recently.
“The joint venture arrangements signed today will help ensure that the financing is properly obtained and the project construction schedule can be met successfully. We are very excited that strong partners like Posco Power and CIC are joining the project and we all share the common aim of making Mong Duong 2 a project that Vietnam will be proud of,” said Ian Fox, chief executive officer at AES-VCM Mong Duong Power Co. Ltd.
The $1.9 billion plant, which was granted an investment certificate last year, is one of Vietnam’s most important power projects. Once operational, it is expected to ease severe electricity shortages in the country.
AES said it was also waiting for Vietnamese government approval for the acquisition of 10 per cent stakes from the state-owned Vietnam National Coal, Mineral Industries Holding Corporation in the Mong Duong 2 coal-fired power plant in Quang Ninh province.