A model of the 1,200 MW-Hai Duong BOT Thermal Power Plant. The US$2.25 billion FDI project is the biggest in the history of Viet Nam's power sector. â€” Photo courtesy of JAKS Hai Duong Power Company Ltd.
HAI DUONG â€” A massive ceremony to break ground for infrastructure works of the biggest foreign direct investment (FDI) in a thermal power project, the Hai Duong 1,200MW Thermal Power Plant, was held in Kim Mon District, Hai Duong Province yesterday.
The Hai Duong Thermal Power Plant will have two 600MW-steam turbines run by JAKS Hai Duong Power Company Ltd under the Malaysia-based JAKS Resources Berhad Group with a total capital investment of US$2.25 billion.
Covering an area of more than 300ha spread over Phuc Thanh, Quang Trung and Le Ninh communes in Kim Mon District, construction for the plant is scheduled to start in June next year with the first turbine expected to be operational by the fourth quarter of 2016 and the other by the second quarter of 2017.
When it opens, the plant will use coal provided by the Viet Nam National Coal and Mineral Industries Holdings Corporation Ltd.
Managing Director of JAKS Resources Berhad Andy Ang Lam Poah said the plant would operate under the build-operate-transfer model as an independent power producer and be transferred to the Ministry of Industry and Trade after 25 years of operation.
"We strongly believe that the development of the Hai Duong Thermal Power Plant project will spur economic activity in Hai Duong and nearby provinces, creating employment and allowing small- and medium-sized enterprises to grow in the area," Poah said.
Secrectary of Hai Duong Province's Party Committee Bui Thanh Quyen said in the past few years, Hai Duong had tried to improve infrastructure and administrative procedures in order to attract investment, adding that Hai Duong had become one of the leading provinces nationwide in attracting FDI with 416 projects from 23 countries and territories.
"Thanks to those soft policies, the province has attracted the biggest FDI project in the power sector - the Hai Duong Thermal Power Plant - which will boost the province's economic growth by supplying electricity to northern provinces," he said.
At the event, Deputy Prime Minister Nguyen Thien Nhan emphasised that the plant marked a milestone in enhancing co-operation betwen Viet Nam and Malaysia.
Nhan requested that province authorities create favourable investment conditions, including clearing the site for the project to be carried out on time.
Contracts have already been signed including BOT, Government Guarantee, Land Lease, Power Purchase and Coal Supply between JAKS with Government, MoIT, Hai Duong's Natural Resources and Environment Department, Electricity of Viet Nam and Vinacomin.
The Hai Duong BOT Thermal Power Plant was approved by the Prime Minister in September 2008 and is part of Viet Nam's Power Planning Outline VI Initiative. â€” VNS