Acwa Power joins $2bn Vietnam power project
Saudi Arabian firm makes its debut in South East Asian energy sector.
Acwa Power has made its first foray into the South East Asian energy sector as part of a consortium to develop a $2bn coal-fired power project in Vietnam.
The largest private sector water and power company in Saudi Arabia has teamed up with Taekwang Power Holdings of Korea on the 1,200 MW Nam Dinh 1 Independent Power Project (IPP) on a greenfield site in Nam Dinh Province, 150 Km Southeast of Hanoi.
The plant, to be developed on a Build, Own, Transfer (BOT) basis, will be equipped with a newly developed clean coal technology called Circulating Fluidized Bed Combustion (CFBC) as an alternative to Pulverized Coal Combustion (PCC), Acwa Power said in a statement.
Government owned companies Vinacomin and Electricity of Vietnam (EVN) will supply the coal and purchase the power offtake respectively.
The operation and maintenance of the project will be undertaken by the consortium with a leading role by NOMAC, a subsidiary of Acwa Power. Korea’s POSCO E&C has been selected as a preferred bidder for the Engineering, Procurement and Construction (EPC) contract.
Paddy Padmanathan, president and CEO of Acwa Power, said: “This project is yet another milestone in ACWA Power’s strategic growth story, and its first foray into South East Asian power sector.”
Rajit Nanda, ACWA Power’s chief investment officer, added that the project would offer a stepping stone for the company to expand into its strategic markets of Philippines and Indonesia which have similar cultures and market structures.”