News Room - Business/Economics

Posted on 07 Jan 2009

Malay firm plans US$1.5b power plant in Vietnam

Janakuasa Sdn Bhd, which is ultimately held by the major owners of a Perlis power plant, has won government approval to build a US$1.5 billion (RM5.22 billion) power plant in Vietnam.

 

It will fully own the proposed 1,200 megawatts ( MW) coal-fired power plant, which will be located in the southern province of Tra Vinh.

 

In a statement yesterday, the independent power producer said construction of Duyen Hai 2 will start in 2011.

 

Upon completion in 2014 or 2015, the power plant will deliver all electricity for sale.

 

However, it did not mention details of a power purchase agreement.

 

"We are proud to have been awarded Duyen Hai 2.

 

"In the past, foreign companies could not own companies in Vietnam unless through joint ventures with state enterprises or business cooperation agreements, that are heavily regulated by the government.

 

"But today, Vietnam's forward market economic policies and strong power demand has made this venture possible," said Janakuasa president and chief executive officer Ti Chee Liang.

 

Duyen Hai 2 is part of Vietnam's Power Development Master Plan VI to address dramatically rising power demand in Vietnam.

 

Power demand in Vietnam is expected to grow between 17% and 22% between 2006 and 2015 in tandem with its position as the fastest growing economy in Asia after China with a gross domestic product growth forecast of seven% this year, and higher in years to come.

 

In 2003, the shareholders of Janakuasa, who are also majority shareholders of Teknologi Tenaga Perlis Consortium Sdn Bhd, completed a 650MW gas fired power project in Perlis, which was built by Alstom, a French engineering group.

 

Completed in a record time of two-months ahead of schedule, Janakuasa intends to build Duyen Hai 2 with the help of Alstom.