An image of Hai Duong coal-fired power plant in Viet Nam. — Photo icon.com.vn

HA NOI (Biz Hub) — Malaysian pipe-maker JAKS Resources Bhd has signed an agreement with China Power Engineering Consulting Group Co Ltd (CPECC) to set up a joint venture to build a coal-fired power plant.

The 1,200MW project, in northern Hai Duong Province, will be developed with an investment capital of US$1.87 billion under a build-operate-transfer (BOT) contract. It is designed to have two 600MW power generation units, whose construction will begin in the first half of next year, with their completion slated for 2020.

The project received an investment licence from Viet Nam's industry and trade ministry in April 2011. A month later, work on infrastructure development began; however, there has been no progress on the project since.

The agreement between JAKS Resources Bhd and CPECC is expected to speed up construction of the power plant.

According to the website baodautu.vn, besides the Phu My 3, Phu My 2 and Mong Duong coal-fired power plants, which are in operation, and the Hai Duong and Vinh Tan 1 plants, which are set to be built, many BOT power projects, with an estimated total capital of tens of billions of US dollars, are awaiting investment. — VNS