AES has closed a $1.5 billion long-term non-recourse construction financing from 12 commercial banks and two Korean government export credit agencies for its 1,200MW Mong Duong II coal-fired power plant.
Located in the Quang Ninh province of Vietnam, the electricity generated by the facility will be sold to state-owned power company Vietnam Electricity under a 25-year agreement. The company has signed a 25-year agreement with the Vietnam National Coal-Mineral Industries Group for the supply of locally sourced coal to the facility.
AES holds a 51% equity ownership interest in the $1.95bn project, while a subsidiary of POSCO Power and a unit of China Investment Corporation hold 30% and 19%, respectively.
Doosan Heavy Industries and Construction Co will serve as the engineering, procurement and construction contractor for the power project, which is expected to begin commercial operations in 2015.
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