A consortium including ACWA Power, the largest private sector water and power company in Saudi Arabia and Taekwang Power Holdings Company Limited of Korea, announced that they signed a joint development agreement to develop Nam Dinh 1 IPP Project, 1200 MW (first phase) coal fired power project, located in Hai Hau District, Nam Dinh Province, 150 Km Southeast of Hanoi, Vietnam.
Nam Dinh1 IPP Project is a Greenfield Independent Power Project (IPP) to be developed on a Build, Own, Transfer (BOT) basis with a total investment cost of more than US$ 2 billion. The plant is to be equipped with new application of clean technologies for coal utilization - Circulating Fluidized Bed Combustion (CFBC) as an alternative to Pulverized Coal Combustion (PCC) for power generation with the coal supplied by Vinacomin, a government owned coal mined company.
The off-taker for the Project will be Electricity of Vietnam (EVN), the government owned national utility. The operation and maintenance of the Project will be undertaken by the consortium with a leading role by NOMAC, a subsidiary of ACWA Power. POSCO E&C from Korea has been selected as a preferred bidder for the Engineering, Procurement and Construction (EPC) of the Project.
Paddy Padmanathan, President & CEO of ACWA Power stated “This project is yet another milestone in ACWA Power’s strategic growth story, and its first foray into South East Asian power sector”.
Thamer Al-Sharhan, MD of ACWA Power, stressed that, “the Project will aid the local economy and contribute to significant economic value retention within Vietnam”.
Rajit Nanda, ACWA Power’s Chief Investment Officer said “this Project in Vietnam is really meaningful to ACWA Power; in fact, this will offer a stepping stone for ACWA Power to eventually expand into its strategic markets of Philippines and Indonesia which have similar cultures and market structures” ”