Another major project along with the rural train project expected to finish construction work by the early 2016 is set to be built in Vietnam. A ceremony that announced the commencement of construction of the projects, named Vinh Tan 1 Thermal Power Plant, was held this Saturday in ha Noi.
It is estimated that the thermal electricity generation project will cost anywhere near US$1.7 billion. Around 95% of the project’s cost will be funded by the Chinese companies China Power International Holding Ltd. and China Southern Power Grid Co.
The last 5 per cent share of funding will be granted by the Vietnamese company Vinacomin, the national Coal Mineral Industries Holding company of Vitenam.
After the successful completion of the project, it is expected to supply power worth nearly 9 billion KWh every year. This will help increase the electric power supply of the country’s southern region and help in reducing the region’s dependence for electricity on hydropower – especially during the times of drought or low waterfall.
Operating under the build, operate, transfer model, the plant will be constructed in four years from now.
The plant is one of the four planned thermal power plants that are to be built in Vietnam’s central province Binh Thuan. These thermal power plants will collectively form the largest thermal power centre in the country and will have a production capacity of 5,600 MW.
The other three plants, Vinh Tan 2, parts of Vinh Tan 3, and Vinh Tan 4, all already been completely build, were funded by the Viet Nam Electricity Corporation of the country.
Of these, the plant Vinh Tan 2 is already battling criticism from residents for its effect in polluting the environment. The plant has been billowing black fumes from last year, known to affect the health and day to day lives of the residents if nearby places.