New Power Plant to Spur Development in Viet Nam’s Mekong Delta

November 24, 2011

MANILA, PHILIPPINES – The Asian Development Bank (ADB) has approved a loan of $309.89 million for a new 750 megawatt (MW) power plant in Viet Nam that will provide critically needed electricity to the country’s energy-starved south.

“Viet Nam’s power consumption has been growing 15% a year over the past decade, and will continue rising at a double-digit pace for the foreseeable future,” said Anthony Jude, Director of ADB’s Energy Division for Southeast Asia. “Viet Nam desperately needs more electricity, and the additional power supply will support economic and social development in the Mekong Delta.”

The O Mon IV plant will provide a more reliable supply of power to the Mekong Delta, support expanded industrial activity, spur new livelihood opportunities, and reduce dependence on hydroelectricity tapped from other regions. It is aligned with Viet Nam’s power sector development plan, which aims to more than triple energy capacity from 18,500 MW in 2010 to 60,000 MW by 2020.

The new combined cycle gas turbine plant is one of four being developed at the O Mon thermal power complex in Can Tho province, about 250 kilometers south of Ho Chi Minh City. The project will save approximately 600,000 tons of carbon dioxide emissions a year compared to coal-based alternatives, possibly qualifying the facility for carbon credits.

O Mon IV, which is due for completion by June 2016, is projected to cost $793.5 million. Germany’s KfW Bankengruppe will contribute $370 million, with state-owned Electricity of Viet Nam (EVN) and the Government of Viet Nam together providing almost $113.6 million.



Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: