Friday, August 17, 2007

New $800 million coal power plant for Vietnam

ITACO, VinaCapital to Build US$800Mln Power Plant in Southern Vietnam

Hochiminh Securities-listed Tan Tao Industrial Park Corp (ITA) and VinaCapital’s Infrastructure Fund (VNI) will jointly construct a 600-megawatt-coal-fired power plant and a coal-conveying port at a total cost of US$800 million in southern province of Long An.

ITA, which operates in various infrastructure projects and owns dozens of industrial parks in HCM City, will contribute 60-70 per cent per cent of the project’s total investment capital.

The London-listed VinaCapital will inject about 30 per cent-40 per cent in the plant.

Once operational, the plant will become the largest of its kind in Vietnam. Its generated electricity will be mainly sold to businesses in the ITA’s IP and part of it will be transferred to Electricity of Vietnam.

ITA and some partners recently invested US$62.5 million, with 51 per cent from ITA to set up electricity joint stock company ITA-POWER, securing the company’s footnote in power sector.
ITA spent US$15 million for a 50 per cent stake in North-West Power JSC in Lai Chau province.

The London-listed US$402-million fund is holding 2.5 million ITA shares, or 3.8 per cent stake valued at US$14.6 million, or VND90,000/share, and invested US$3.95 million to buy a 5.2 per cent stake in Ba Ria-Vung Tau thermal power plant with 389MW capacity.