Saudi-Korean tie up for $2bn Vietnam power project  Power and Energy

A $2 billion coal-fired power project is to be built in Vietnam’s Nam Dinh province by the consortium driven by Saudi Arabia’s ACWA Power and Taekwang Power Holdings from Korea.

The companies have entered a mutual agreement to develop the initial phase of the plant, the 1,200 MW Nam Dinh1 Independent Power Project (IPP) situated on a greenfield site in Nam Dinh Province, 150 km Southeast of Hanoi.

The coal-fired plant will be developed on a Build, Own, Transfer (BOT) basis, will be equipped with new applications a clean coal technology to generate power with coal called Circulating Fluidized Bed Combustion (CFBC) as substitute to Pulverized Coal Combustion (PCC) that will be supplied by the government owned companies Vinacomin and Electricity of Vietnam (EVN).

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

According to Paddy Padmanathan, president and CEO of ACWA Power – This project is the first step by ACWA into South East Asian power sector and a yet another milestone in the strategic development of the company.

The recent power project is very much important to ACWA Power which will also facilitate a stepping stone for the company to eventually extend into its strategic markets of Philippines and Indonesia which have similar cultures and market structures, says, Ranjit Nanda, chief investment officer, ACWA Power.