Two foreign banks fund Mao Khe thermal power plant

April 08, 2011 | 08:30

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BNP Paribas of France and Bank of China will provide an export credit agency (ECA) worth $275 million to the Mao Khe Thermoelectric Power Plant.

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The ECA to the effect was signed by the Vietnam National Coal, Mineral Industries Corporation (Vinacomin) and the two banks in Hanoi on April 7.

At the signing ceremony, Deputy Minister of Industry and Trade Le Duong Quang said the signing of the ECA reflected the French and Chinese banks’ confidence in Vinacomin.

According to Vinacomin General Director Le Minh Chuan, the corporation has already signed an engineering, procurement and construction (EPC) contract worth $429.5 million with China’s KAIDI Electric Power Co. Ltd. for the $577 million plant. The 275 million ECA to fund the EPC contract is guaranteed by Vietnam’s Finance Ministry and insured by Sinosure of China for 13 years.

Invested by Vinacomin, the Mao Khe Thermoelectric Power Plant in the northern coal-mining province of Quang Ninh will include two turbines with a combined capacity of 440MW and consume dust coal from Mao Khe, Trang Bach, Khe Chuoi and Hong Thai mines to generate electricity.

Work on the plant was commenced on July 8, 2009. Once operational by the end of 2012, the plant is expected to provide around 2.6 billion kWh of electricity for the national grid per year.

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