The company comprises six Vietnamese businesses, including the Electricity of Vietnam and the Song Da Corp which will hold 60% of the equity.
The project, which will be built on a built-own-transfer basis, is Vietnam’s largest ever overseas investment and is located in Xecoong province, 35 km from the common border.
Construction of the 250MW plant began recently with commercial operations scheduled for 2008 when a 220kV transmission line connects the plant to the Vietnamese national grid in the central Quang Nam province.
Some US$203M in financing will come from the Development Assistance Fund and commercial banks.
After 25 years of operation, the plant will be transferred to Laos.
