China Southern Power Grid and its partners have commenced construction of the 1200 MW Vinh Tan 1 coal-fired power plant in southern Vietnam.

The project represents an investment of $1.75bn with China Southern Power Grid owning a 55 per cent stake while China Power International Development and Vietnam National Coal-Mineral Industries (Vinacomin) hold 45 per cent and 5 per cent, respectively.
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In the largest ever investment by China in Vietnam, the project will be constructed under a 25-year build-operate-transfer (BOT) contract with the Vietnamese Government.

Designed to help ease power crisis in Vietnam’s southern region, the power plant’s first generator is planned to be commissioned in December 2018 followed by the second in June 2019.

The project is expected to generate 2.8 per cent of the total power generation in the country.