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HANOI, Oct.26 (Reuters) – Vietnam will begin construction of the controversial Vung Ang 2 coal-fired power plant in December, a spokesperson for the company and local media said on Tuesday, as the country continues plans to scale up its electricity production from fossil fuels.
The investor, Vung Ang II Thermal Power LLC (VAPCO), has completed the procedures necessary to complete the $ 2.2 billion project, Deputy Managing Director Hoang Trong Binh told Vietnam Finance newspaper.
The 1,230-megawatt power plant in central Ha Tinh province has been the subject of global calls to phase out fossil fuels to help reduce global greenhouse gas emissions.
Vung Ang 2, owned largely by Mitsubishi Corp (8058.T) and Korea Electric Power (015760.KS), is expected to start producing commercial electricity in the third quarter of 2025, Binh said.
South Korean companies Doosan Heavy Industries & Construction (034020.KS) and Samsung C&T (028260.KS) were among the construction contractors involved in the project, he added.
A spokesperson for VAPCO said construction work on the project would begin on December 5.
Vietnamese Deputy Prime Minister Le Van Thanh, in a statement released Monday, called on his miners and relevant authorities to increase domestic coal production as the country increasingly relies on imports.
Vietnam could double the amount of coal-fired power generation it is installing by 2030 under a draft plan submitted to the prime minister for approval earlier this month. Read more
Editing by James Pearson
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