Kepco inks W2.6tr deal to construct coal-fired plant in Vietnam

Korea’s utility provider Korea Power Electric Corp. signed a 2.6 trillion won ($2.3 billion) deal to construct a coal-fired plant in Vietnam, the company said Thursday.

A consortium of Kepco and Japanese trading firm Marubeni will be in charge of construction as well as the operation of the 1,200-megawatt power plant in the Nghi Son 2 economic zone in the central province of Thanh Hoa, about 200 kilometers south of Hanoi.

Kepco CEO Cho Hwan-eik (first from right) poses for a picture with Deputy Minister of Industry and Trade Hoang Quoc Vuong (second from right) and Marubeni Power Project & Plant Group CEO Masumi Kakinoki (second from left) after signing a contract for the Nghi Son project Wednesday. (Kepco)

The Korean state-run utility provider has a 50 percent share in the project, and the Japanese trading firm owns the other 50 percent.

Kepco expects to receive around 14.8 trillion won through the plant’s operation over a 25-year period.

The construction will begin later this year with the aim of completion by the end of 2021.

The consortium singed a turnkey-basis contract with Doosan Heavy Industries and Construction to build the coal-fired plant, the company added.

The Export-Import Bank of Korea will invest 75 percent of the 2.6 trillion won needed to build the power plant, Kepco said.

By Shim Woo-hyun (ws@heraldcorp.com)