ACWA Power and Taekwang Power to develop Vietnam power project

ACWA Power and Taekwang Power Holdings have signed an agreement to develop Nam Dinh 1 IPP Project, 1200 MW (first phase) coal fired power project in Vietnam.

The total investment is estimated at US2 billion. The project will be developed on a build, own, transfer (BOT) basis.

The buyer of power from the project will be Electricity of Vietnam (EVN), the government owned national utility. The coal will be supplied by Vinacomin, a government owned coal mine company.

The consortium will undertake the operation and maintenance of the project with ACWA’s subsidiary NOMAC. POSCO E&C from Korea has been selected as a preferred bidder for the engineering, procurement and construction (EPC) of the project.

Rajit Nanda, ACWA’s chief investment officer, stated:

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.

The project will be located in Hai Hau District, Nam Dinh Province, 150 Km Southeast of Hanoi, Vietnam. The new plant, which is a Greenfield Independent Power Project (IPP), will be equipped with a newly developed clean coal technology called Circulating Fluidized Bed Combustion (CFBC) as an alternative to Pulverized Coal Combustion (PCC).