AES agrees to sell Mong Duong 2 coal-fired plant in Vietnam

15:00 | 06/01/2021 Companies

(VEN) - The AES Corporation (NYSE: AES) signed an agreement on December 31, 2020 to sell its entire equity interest in the 1,242 MW Mong Duong 2 coal-fired power plant in Vietnam to a consortium led by a US-based investor.

Mong Duong 2 coal-fired power plant in Vietnam

This transaction is expected to close in late 2021 or early 2022, subject to customary approvals, including from the Government of Vietnam and the minority partners in Mong Duong 2.

AES owns a 51% equity interest in Mong Duong 2, Posco Energy Company Limited owns 30% and Stable Investment Corporation, a subsidiary of China Investment Corporation, owns the remaining 19%.

The construction of Mong Duong 2 was completed in 2015 under a Build-Own-Transfer (BOT) contract, with a 25-year Power Purchase Agreement (PPA) with Vietnam Electricity (EVN).

Andrés Gluski, AES President and Chief Executive Officer, said: “We have had a very positive experience in developing, building and owning Mong Duong 2 and Vietnam remains an important growth market for AES, where we look forward to contributing to the country’s transition to a more sustainable energy future.”

“In line with our global strategy to invest in renewables and LNG infrastructure, in Vietnam, we continue to make good progress on the development of the 450 TBTU Son My LNG terminal with PetroVietnam (PVN) and the 2,250 MW Son My 2 combined cycle gas power plant”, he added.

My Phung