Under the $1.38 billion contract, Shanghai Electric would build the 1,244MW coal-fired Vinh Tan 2 plant in Vietnamese northern province of Binh Thuan. The plant is one of three power plants in the Vinh Tan power complex situated at Vinh Tan commune in Binh Thuan’s Tuy Phong district.

As reported, the plant is expected to provide between 7.5 and eight billion kwh of electricity a year. The Export-Import Bank of China would provide a preferential loan for construction of the plant.

The Vinh Tan 2 thermo-electric power plant, which is scheduled to be operational in 2013, will use environmentally friendly technology that would meet Vietnamese and international environmental protection standards. Transmission lines are being carried out by EVN to connect the plant with the national power grid.