Vietnam approves fifth foreign-funded BOT power project

China will build plant at Binh Thuan province.

China Southern Power Grid’s project to build the Vinh Tan 1 Power Plant in Binh Thuan could be licensed by late September with the. official project awarding ceremony taking place in mid- October, said a senior Vietnamese government source.

The project will become the fifth foreign-backed build-operate-transfer (BOT) project licensed by Vietnam in the 27 years since the country opened its door to foreign direct investment. The first four licensed projects include Phu My 2.2, Phu My 3, Hai Duong and Mong Duong.

A memorandum of understanding to build the Vinh Tan 1 BOT project was signed in 2006, but negotiations for the project were over extended. The 1,200 MW project includes two 600 MW capacity turbines. The project cost was initially estimated at US$1.76 billion. China Southern Power Grid, however, has proposed that the project’s capital be increased to over US$2 billion, which includes a US$263.26 million emergency fund. The Chinese firm will own a 55% stake in the project. China Power International Holding Ltd will have 40% while Vinacomin will own 5%.