The $1.95bn thermal power plant has been constructed by AES-VCM Mong Duong Power, a joint venture between AES, Posco Energy and China Investment, under a build-operate-transfer agreement, and was financed with $1.5bn in non-recourse debt.
Featuring two generating units of 620MW gross capacity each, the power generation facility has a 25-year coal supply agreement with state-owned entity Vinacomin.
Electricity generated by the facility will be sold to state-owned power company Vietnam Electricity under a 25-year power purchase agreement.
AES president and CEO Andrés Gluski said: "Executing on our 7GW construction program is the main driver of our cash and earnings growth through 2018.
"Beyond Mong Duong 2, we see a number of potential opportunities for AES in Vietnam, to help meet their rapidly growing demand for electricity."
AES Global Engineering and Construction senior vice-president Michael Chilton said: "Our remaining 6GW under construction are progressing well and are on time and on budget."
The Vietnam Institute of Energy and the National Center for Socio-Economic Information and Forecast estimates Vietnam’s power demand and the gross domestic product to increase by 10.5% and 6.5%, respectively, over the next five years.
The Vietnam Government has set target to increase its installed capacity by more than 60GW over the next five years.
Image: The 1,240MW Mong Duong 2 power plant in the Quang Ninh Province of Vietnam. Photo: Copyright © 2009-2015 The AES Corporation.
