ACWA Power JV granted registration certificate for $2.3bn project
ACWA Power's JVC with South Korea’s Taekwang Power Holdings has been granted an investment registration certification for the implementation of Nam Dinh 1 Thermal Power Project
Vietnam’s Ministry of Planning and Investment has granted an investment registration certificate (IRC) to Nam Dinh First Power Holdings for the implementation of the 1,200MW Nam Dinh 1 Thermal Power Project.
The granting of the IRC follows the signing of the investment agreement by the Ministry of Industry and Trade and Nam Dinh First Power Holdings in January 2016.
Nam Dinh First Power Holdings is a Singapore-based joint venture company (JVC) comprising Saudi Arabia’s ACWA Power and South Korea’s Taekwang Power Holdings.
In a statement, ACWA Power said that the thermal power plant, which is being developed in the Hai Hau district of Vietnam’s Nam Dinh province, is being developed on a build-operate-transfer (BOT) basis over a 25-year term.
The project reportedly has a total project cost of approximately $2.3bn, 25% of which is funded through equity, while the rest project finance from international financial institutions.
According to ACWA Power, the plant will use locally sourced anthracite coal, which will be provide the state coal mining group, Vinacomin.
Meanwhile, electricity produced by the plant will be dispatched to the national 500kV grid and wholly purchased by Electricity of Vietnam.
Paddy Padmanathan, president and CEO of ACWA Power, commented: “While the granting of the IRC represents a significant step in the development of this project, more importantly it demonstrates the commitment of the Vietnamese government to protect foreign investors and to encourage the participation of private investors in infrastructure expansion in the country.
“We look forward to completing the financing arrangements and commence construction of the power plant to enable us to contribute to the development of Vietnam by delivering reliable, safe, and cost-effective electricity.”
The power plant’s first unit and power facility are expected to be operational 51 months and 57 months, respectively, after construction commences – which has been scheduled for early 2018.
Under the terms of the BOT contract, Nam Dinh First Power Holdings will oversee the commercial operations of the facility for 25 years, after which the power facility and its related assets will be handed over to the government of Vietnam.