China Power Engineering Consulting Group will invest in and build the 1200 MW coal-fired power project sponsored by JAKS Resources in Vietnam.
China Power will enter the project as a joint venture equity partner through an investment of RM1.2 billion (US$316 million). JAKS Power Holdings will allocate RM529 million (US$139 million) to the venture.
All relevant approvals from the Chinese authorities have been obtained by China Power. The company will own 50% of the equity, contributing technical expertise and financial security to the project.
Located in Hai Duong Province, Vietnam, the project will consist of two 600 MW coal-fired units with a total generating capacity of 1200 MW.
The project is based on a build-operate-transfer (BOT) model with a 25-year term. Upon expiry of the BOT contract, the power facility will be transferred back to the Vietnam government at no charge.
A 25-year power purchase agreement (PPA) with Vietnam Electricity is in place and a coal supply agreement with Vietnam National Coal-Mineral Industries Group will be effective for the duration of the BOT period.
With a total investment cost of US$1.87 billion, the project will be funded on a capital structure of roughly 75% debt and 25% equity.
Construction is scheduled to begin in the first half of 2016, with commercial operation expected to start in 2020.
IPP Journal has recently reported on a number of high-capacity coal-fired plants in the APAC region: