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An Australian firm has accepted a Vietnamese government suggestion to increase the capacity of a thermal power plant it proposes to build in the Mekong Delta and will quadruple its investment.
Ensham Resources will up the capacity of the plant it will begin building next year in Kien Giang province from 1,000 MW to 3,600 MW.
The cost of the coal-fired plant will go up from the original US$1 billion to $4 billion and Ensham plans to offer a stake to other international investors.
Last September the local administration sought central government approval for the project in Kien Luong District to supply power for the province, particularly Phu Quoc Island.
While giving approval, the industry ministry and power supply monopoly Electricity of Vietnam asked the investor to increase the size of project to meet the province’s electricity needs.
The plant is sought to be built on Hon Chong Island under either the BOT (Build-Operate-Transfer) or BOO (Build-Operate-Own) mode.
Ensham will also spend $400 million to dredge the coast and build a deep seaport in Kien Luong for carrying coal from Australia.
The industry ministry said Vietnam welcomed private investment in electricity generation because of an imminent power shortfall.
The Vietnam Energy Institute has indicated that power generation growth should be double that of GDP growth to ensure sustainable development.
Vietnam targets annual GDP growth of 8 percent in 2006-10 but power supply is only expected to increase by 13 -15 percent despite buying from China.
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