Vung Ang 2 thermal power plant in the central province of Ha Tinh. — Photo pvpower.vn

Japan's Shikoku Electric Power Company has paid more than 10 billion yen (US$87 million) to buy a 15 per cent stake in the Ha Tinh-based Vung Ang 2 coal-fired power plant project in Viet Nam.

Reuters reported Shikoku paid between 10 billion and 20 billion yen to the Japanese trading house Mitsubishi Corp to buy the stake.

"We understand there are various opinions about the project, but we have decided to join it as the 1.2 gigawatts project is expected to contribute to the stable supply of electricity and economic development in Viet Nam," the Shikoku Electric spokesperson said.

The move is part of Shikoku Electric's efforts to expand overseas operations to boost growth. It aims to support the operation of the plant with the know-how derived from its domestic power business, the company said.

After the deal, Mitsubishi holds a 25 per cent stake in the project while another Japanese utility, Chugoku Electric Power Co Inc, owns a 20 per cent stake. — VNS