Chinese Shanghai Electric Group signed an engineering, procurement, and construction (EPC) contract with Electricity of Vietnam Friday in Hanoi to help it build a thermal power plant.
Under the contract, the Shanghai Electric Group will conduct the designs, construction, installation and equipment supply for the Vinh Tan thermal power plant in Vietnamese northern province of Binh Thuan. The contract is valued at $1.3 billion.
The Vinh Tan thermal power plant is expected to provide between 7.5 and 8 billion kWh of electricity a year, said Zhou Zhizhu, vice president of the Shanghai Electric Power Generation Group at the signing ceremony.
The plant is an important project, which would help meet the country's demand for electricity in the coming years, said Pham LeThanh, General Director of the EVN.
The plant is scheduled to be put into operation in 2013. The Export-Import Bank of China will provide a preferential loan for building the plant.