China joins Malaysia to build $1.87 billion power plant in VN
China joins Malaysia to build $1.87 billion power plant in VN
JAKS Resources Berhad (Malaysia) will cooperate with China Petroleum Engineering & Construction Corporation (CPECC) in a joint venture to build a power plant with capital amounted to $1.87 billion in Vietnam, according to Malaysia’s The Star.
The newspaper reported on July 7 that the project will build two turbines with a capacity of 600 MW under the support of TNHH JAKS Power Holding, an affiliate of JAKS Group.
The capital structure will include 25% of equity and 75% of capital raised from outside sources.
This project will commence in the first half of 2016 and is scheduled for completion in 2020.
The Star also said that on Monday the parties signed an agreement for the participation of CPECC in the project in the form of BOT (Build-Operate-Transfer) in Hai Duong Province, Vietnam.
CPECC received approval from the Chinese government to invest in the project with 50% capital contribution ratio.
The Ministry of Planning and Investment of Vietnam granted the investment certificate for JAKS to develop the power plant project in the form of BOT on August 26, 2011.
It will operate as an independent power plant in 25 years. When the contract expires, the power plant and the associated equipment will be transferred without compensation to the Government of Vietnam.
JAKS also signed a power purchase agreement with the Electricity of Vietnam Group (EVN) for 25 years and a coal supply agreement with the Vietnam Coal - Minerals Group during the contract period.
