Deal worth $150m signed to build hydro plant
Deal worth $150m signed to build hydro plant
The Trung Son Hydropower Co Ltd, a subsidiary of Electricity of Viet Nam (EVN), yesterday signed a deal worth close to VND3 trillion (US$150 million) with a joint venture company to build and equip the Trung Son Hydropower Plant.
The joint venture is formed between Samsung C&T Corporation and Construction Company 47.
The total cost of the project is VND7.7 trillion ($410 million),with VND6.2 trillion ($295.2 million) being provided by the World Bank (WB), accounting for 80 per cent of the value. The remaining money has been invested by the Trung Son Hydropower Company Limited.
Speaking at the signing ceremony, Ngo Viet Hai, chairman and director of the Trung Son company said yesterday that the deal was the biggest so far on the project. He also confirmed that it is the first hydropower project that WB has financed in the country.
Keiko Sato, WB's Portfolio and Operations Manager, said he expected that the bank's capital would be used effectively.
Pham Le Thanh, EVN's general director asked the company to closely co-operate with the successful bidder and its consultancy units to ensure that targets set in the contract are met.
Located on the Ma River in the Quan Hoa District o central Thanh Hoa Province, the plant – with its eventual capacity of 260MW – is expected to provide 1.55 billion kWh to the national power grid every year. A reservoir will be created, covering an area of about 13.13 sq.km.
The project aims to meet growing domestic demand for electricity, and bring flood control and irrigation benefits to rural and poor communities in the province.
There are four components to the project; dam and ancillary construction, transmission line creation, social and environment impact management and capacity development. EVN wants to increase its capacity for preparing hydropower projects that meet international standards.
The first rotor is expected to generate electricity by 2017 and project completion is expected by 2018.
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