Samsung C&T Corp on Wednesday clinched a Memorandum of Understanding (MoU) with the Ministry of Industry and Trade to develop a $2.5 billion thermal power plant in central Vietnam.
Accordingly, the South Korean construction conglomerate will be the main developer of the Build-Operate-Transfer (BOT) Vung Ang 3 Thermal Power project in the central province of Ha Tinh.
The 2,400-MW plant, located at Vung Ang Economic Zone, will be fueled by imported coal. The first phase of the project will be completed by January 2022, while the entire project will come online 6 months later.
This is the first project in the field of thermal power that Samsung will be the main investor and developer in Vietnam, and the MoU signing ceremony is the important milestone in the development of projects, said Joon Suk Choi, vice president of Samsung C & T at the signing ceremony.
Talking with Tuoi Tre, Le Van Luong - deputy director of the Department of Planning and Investment of Ha Tinh Province, Japanese industrial conglomerate Mishubishi has also planned to invest in Vung Ang 2 Thermal Power project with the same amount of capital.
According to the Samsung representative, it has explored and studied six places to seek for a suitable thermal power project coal project to pour money into and decided to invest in Vung Ang as this is the best place in Vietnam.
Vung Ang Thermal Power 3 is the first project in the field of thermal power Samsung to invest in Vietnam.
This is the also first project under Samsung’s bigger plan to invest in Vietnam after the South Korea's conglomerate signed a MoU with the Ministry of Planning and Investment, in addition to the projects of Samsung Electronics.
Earlier, on October 14, 2013, Samsung sent a letter to the Ministry of Industry and Trade Minister formally announced its intention to invest in Vung Ang 3 Thermal Power Plant.
Samsung wants Ha Tinh Province to support Samsung so that the Ministry of Industry and Trade will give the green light.
With two financially-strong affiliated companies, Samsung C&T said it don’t have to worry about capitals. Moreover, with extensive experience in the implementation of BOT projects in other markets, Samsung is committed to timely implement the thermal power project in the central province.