Through the MOU, Sembcorp will be allocated land by Quang Ngai PC for the power project in the Dung Quat Economic Zone in the central Vietnamese province of Quang Ngai.

In last March, Sembcorp had signed a MOU with Vietnam’s Ministry of Industry and Trade (MoIT) for the development of the gas-fired power project under a 20-year build-operate-transfer arrangement.

Under the 2017 MOU, Sembcorp has concluded a feasibility study for the power project and has filed the report to MoIT earlier this year for additional review and evaluation.

Sembcorp Singapore, Southeast Asia & China head Koh Chiap Khiong said: “Having established a proven track record in Vietnam with our Vietnam Singapore Industrial Park projects and our first power plant, Phu My 3, we are confident of successfully developing this project.

“We are committed as a long term investor to Vietnam and hope to grow our offerings as an integrated energy player to support Vietnam’s move to cleaner energy sources to power the nation’s economic growth.”

Sembcorp Utilities is a wholly-owned subsidiary of Singapore-based utilities, marine and urban development group, Sembcorp Industries. The company’s energy division develops, owns and operates energy facilities, and has a total generation capacity of more than 11,000MW from thermal and renewable assets.

On the renewable front, the company had acquired Sembcorp Green Infra, an Indian renewable energy business from IDFC Private Equity Fund III in 2017 for $221.4m.

Earlier this week, Sembcorp Green Infra had given a contract to Siemens Gamesa to supply 143 of its SG 2.1-122 turbines for its 300MW wind farm to be built in the Indian state of Gujarat. The Sembcorp subsidiary had bagged the wind farm project during the third nationwide wind power auction conducted by Solar Energy Corporation of India (SECI).