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The $1.27 billion agreement formed part of the national electricity development programme in the period 2006-15, approved by Prime Minister Nguyen Tan Dung.
Covering an area of 55hectares, the 1,080-MW Mong Duong 1 Thermopower Plant in Cam Pha town, Quang Ninh province, 250km northeast of Hanoi to was expected to generate 6.5 billion KWh annually.
The plant will use coal with thermopower technology suitable for Vietnam's low-quality anthracite coal.
This technology has a high capacity with low costs, in addition to ensuring environmental protection.
The plant will consume about 3 million tonnes of coal per year. The plant's first turbine is expected to become operational in the first quarter of 2015, with a second to follow in the third quarter of 2015.
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