Vietnam News Service reported that the PetroVietnam Group inked a contract worth USD 1.2 billion with Petro Vietnam Technical Services Corporation in Ha Noi to build the Long Phu 1 coal fired thermal power plant.
Under the contract, PTSC would provide engineering, procurement and construction for PetroVietnam's 1,200 MW plant in the Cuu Long Delta province of Soc Trang.
Mr Nguyen Quoc Khanh deputy general director of PetroVietnam said that the contract marked an important step for the two sides to begin progress on the project, slated for January 2011.
It would be the first of three coal fired power plants located in the provincial Long Phu Power Centre to begin construction. To date, land clearance and the overall design for the 115 hectares plant has been completed and it would use hi quality coal imported from Indonesia and Australia.
Mr Le Duong Quang deputy minister of industry and trade spoke highly of PetroVietnam's efforts in ensuring the efficient funding and adequate coal supplies for the project. He called on further efforts from the two sides to implement the project on schedule, ensuring that the plant's first turbine would be put into commercial operation in 2014, with the second section operational in 2015.
The two turbines set to provide an annual output of 7.8 billion kWh would help to better ensure power for the region and the country as a whole. The ministry would also ask the government and the ministry of transport to facilitate the plant's construction and operation.
Late last week, the first turbine of Nhon Trach 2 thermal power plant, in the southern province of Dong Nai began generating electricity for the national grid, three months ahead of schedule.
The plant was invested in by PetroVietnam and contractors, the Viet Nam Machinery Erection Corporation and PetroVietnam Construction Joint Stock Corporation.
Viet Nam's power industry would have a total capacity of 20,900 MW by the year end. Of which, 10,400 MW was provided by EVN from 2006-10. This marks a 1.98 increase on 2005's figure. The average growth rate of residential electricity purchases from 2006-10 was 13.7%, double the GDP growth rate.
(Sourced from www.vietnamnews.vnanet.vn)
