Vinacomin to withdraw from Mong Duong project

Vinacomin will withdraw from the Mong Duong 2 electricity project to invest in other major thermal power projects.

A Vietnam National Coal and Mineral Group or Vinacomin leader told the VnExpress newswire that the group was making procedures to withdraw the Mong Duong 2 project. “We are trying to invest in some important projects as Hai Phong thermo power project and another one in Quynh Lap, Nghe An province”.

After Vinacomin asked to withdraw from the project, AES group will sell its 49 per cent stake in Mong Duong 2 project to Posco Power Group and China Investment Group.

The project had an initial capital of $1.4 billion but the cost has been raised to $1.9 billion. Work on the plant is scheduled to start by the middle of 2011. About $1.4 billion will be loans provided from international banks supported by South Korean export credit institutions.

Operation and maintenance of Mong Duong 2 project will be managed by AES and Posco Tower. Till now, Mong Duong 2 is the first coal-fired BOT plant and is the largest private project of Vietnam.