HCMC – A US$-2.58 billion thermal power plant has started commercial operation in the south-central province of Khanh Hoa, increasing electricity supply for production, business and household use in the region and the country.
Japanese firm Sumitomo Corporation, the investor of the project, and Van Phong Power Company Limited held an inauguration ceremony yesterday, March 13, of the Van Phong 1 power station in the Van Phong Economic Zone in Ninh Phuoc Commune, Ninh Hoa Town.
The thermal power plant consists of two units with a designed capacity of 1,432 MW, employing advanced boiler technology.
Once operational, the plant is expected to supply around 8.5 billion kWh of electricity per year, accounting for 3% of the nation’s total electricity output.
As the largest foreign direct investment project in Khanh Hoa, Van Phong 1 power plant was developed under a build-operate-transfer (BOT) contract signed with the Ministry of Industry and Trade. The facility will be transferred to Vietnam after 25 years of operation.
Nguyen Tan Tuan, chairman of Khanh Hoa Province, said that the new power plant would incentivize investors to set up shop in the Van Phong Economic Zone, bolster industrial growth, and fuel economic growth in Khanh Hoa and the south-central region as a whole.
He said the project would create employment for many locals and contribute about VND1 trillion in taxes to the local budget annually.
