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.
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