The O Mon IV plant will provide a reliable supply of power to the Mekong Delta, support expanded industrial activity, spur new livelihood opportunities, and reduce dependence on hydroelectricity tapped from other regions.
O Mon IV, which is due for completion by June 2016, is projected to cost $793.5m.
The project will save about 600,000 tons of carbon dioxide emissions a year compared to coal-based alternatives, possibly qualifying the facility for carbon credits.
The new combined cycle gas turbine plant is one of four being developed at the O Mon thermal power complex in Can Tho province.
ADB Energy Division for Southeast Asia director Anthony Jude said Viet Nam desperately needs more electricity, and the additional power supply will support economic and social development in the Mekong Delta.
Germany’s KfW Bankengruppe will contribute $370m, with state-owned Electricity of Viet Nam (EVN) and the Government of Viet Nam together providing almost $113.6m.
A second plant at the complex is to be bid out to private investors, while the Government of Japan is funding two others in conjunction with EVN.
The complex, which will have 3,600 MW of generating capacity when complete.
