~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2002]

Financing finalized for Vietnam power project

HANOI - Vietnam on Friday finalized the financing of the landmark 480 million dollar Phu My 2.2 gas-fired power plant, the World Bank said. The project for the first time shifts the provision of infrastructure services in Vietnam from the public to the private sector, Klaus Rohland, World Bank country director for Vietnam, said in a statement.

It is the first time such a big project has been selected through an international competitive bidding process in Vietnam. The bidding process means the price of the electricity from the project will amongst "the most competitive in Asia and in the world", according to Anil Malhotra, World Bank energy adviser and manager of the project, The 715-megawatt project in the southern province of Ba Ria-Vung Tau will be developed, owned and operated by Mekong Energy Co. Ltd (MECO), a consortium led by EDF International (EDFI), a subsidiary of Electricite de France.

EDFI has a 56.2 percent stake in MECO. Japan's Sumitomo Corp. has 28.2 percent, with TEPCO International, a subsidiary of Tokyo Electric Power Co. holding the remaining 15.6 percent stake. The project will be financed through a combination of 140 million dollars of equity and debt of 340 million dollars.

Economic expansion and industrialization has fueled robust growth in demand for power in Vietnam. Demand has been growing 13-15 percent faster than GDP over the last five years. The World Bank estimates that to sustain expected annual economic growth of 6-8 percent over the next five years, Vietnam needs to increase its electricity supplies at the rate of about 10-14 percent a year.

Agence France Presse - December 20, 2002.