A consortium including Saudi-based ACWA Power and Taekwang Power Holdings Company Limited of Korea, has signed an agreement to develop a $2 billion power project in Vietnam.
Under the agreement, the group will develop the Nam Dinh 1 IPP Project, a 1200MW coal fired power plant located in Hai Hau District, 150km from Hanoi.
Nam Dinh1 IPP Project is to be developed on a build, own, transfer (BOT) basis with a total investment cost of more than $2 billion.
The buyer of power from the project will be Electricity of Vietnam (EVN), the government owned national utility.
The operation and maintenance of the project will be undertaken by the consortium with a leading role by NOMAC, a subsidiary of ACWA Power. POSCO E&C from Korea has been selected as a preferred bidder for the Engineering, Procurement and Construction (EPC) of the project.
Paddy Padmanathan, president and CEO of ACWA Power, said: "This project is yet another milestone in ACWA Power's strategic growth story, and its first foray into South East Asian power sector."
Rajit Nanda, ACWA Power's chief investment officer, added: "This project in Vietnam is really meaningful to ACWA Power; in fact, this will offer a stepping stone for ACWA Power to eventually expand into its strategic markets of Philippines and Indonesia which have similar cultures and market structures" "
ACWA Power is a developer, investor, co-owner and operator of a portfolio of plants with a capacity to generate 15,739MW of power and produce 2.4 million cubic metres per day of desalinated water, which has an investment value in excess of $22 billion.