Representatives of PetroVietnam and Lilama signed a contract last Friday to develop the Song Hau 1 thermoelectric plant in Hau Giang. — File Photo

HA NOI (Biz Hub) — The Viet Nam Oil and Gas Group (PetroVietnam) and the Viet Nam Machinery Installation Corporation (Lilama) signed a contract last Friday to develop the Song Hau 1 thermoelectric plant in the southern province of Hau Giang.

PetroVietnam is to be the investor. With this "EPC" contract, Lilama is committed to carrying out the engineering, procurement and construction phases.

The factory has a total investment capital of more than VND43 trillion (US$2.05 billion) and will cover an area of some 115 hectares in the Cuu Long (Mekong) Delta province's Chau Thanh District.

The facility belongs to the Song Hau Electricity Centre, and will generate a total capacity of 1,200 megawatts (MW) with two turbines. It is expected to come into operation in 2019 and supply about 7.8 billion kilowatt-hours per year for the national grid.

The contruction site of Duyen Hai 1 thermoelectric plant. — File Photo

The project is among the key works outlined in a master plan adopted by the Government for national electricity development during the 2011-20 period, with a vision to 2030. It will help drive economic development of the delta and ensure the country's energy security.

On Friday, Lilama also inked a contract with South Korea's Doosan Group, which will provide the major equipment for the project.

Deputy Prime Minister Hoang Trung Hai asked the investor and contractors to guarantee close collaboration for the efficiency of the plant. PetroVietnam Nguyen Quoc Khanh undertook to protect the environment to achieve optimal socio-economic effects while carrying out the project.

Song Hau 1 will be among three thermoelectric factories of the Song Hau Electricity Centre, which are projected to have a combined generating capacity of 5,200 MW. — VNS