Mong Duong 2 BOT Power Plant: Quenching the thirst for electricity

US$2.1 billion for the biggest power plant

In parallel with economic growth, energy consumption is continuously growing in Vietnam. According to the Vietnam Institute of Energy and National Center for Socio-Economic Information and Forecast, electricity demand and GDP of Vietnam will record growth of 11 percent and 7 percent, respectively, in the next five years. Vietnam is seen as an important market with many potential opportunities, especially after the negotiation phase of the Trans-Pacific Partnership (TPP) agreement ended successfully. Investment in new powerprojects plays a very important role in helping to ensure national energy security.

On August 7, 2011, the Mong Duong 2 BOT Power Plant held a ground breaking ceremony in Mong Duong Ward, the city of Cam Pha. The AES-VCM Mong Duong Power Company, the owner of the Mong Duong 2 BOT Power Plant, is a joint venture between the AES Corporation and the Posco Energy and China Investment Corporation, in which the AES Corporation is the largest shareholder with 51 percent ownership.

The Mong Duong 2 BOT Power Plant has two units with a total gross capacity of 1,240MW and investment of approximately US$2.1 billion. The plant was built under a BOT agreement and will be transferred to the government after 25 years. The power plant uses pulverized coal-fired boiler technology and is the first private sector power plant in Vietnam.

After almost four years of construction, in April 2015, the Mong Duong 2 BOT Power Plant entered full commercial operation, approximately six months ahead of the schedule.

Since the synchronization, both units have contributed more than four billion kWh to the national grid. The plant is expected to provide more than 7.6 billion kWh annually, equivalent to seven percent of total capacity of the national power system.

David Stone, the Managing Director of AES-VCM, said that the government of Vietnam has provided great support for the project over the years. The AES-VCM Mong Duong Power Company is very proud that the majority of the work was performed by the dedicated, skilled and focused Vietnamese workers. This is a significant accomplishment which is not typical in most developing countries. The project has also accomplished 46 million man-hours safely throughout the construction phase.

“This project has received great support from the government of Vietnam which has made a significant contribution to the success of the project. Besides, the project has received attention and support from the leadership of the People’s Committee of Quang Ninh Province and Cam Pha, thereby, contributing to the early completion of the project,” David Stone said.

Great contribution to the local community

The success of the Mong Duong 2 BOT Power Plant is a clear demonstration of close cooperation through the years between AES and the government of Vietnam and relative agencies.

Not only providing a significant amount of electricity, contributing to the country’s energy security, the project has created more than 7,000 jobs, as well as professional training of local employees. Quality of work is always AES’ top priority. AES can assure that its power plant, regardless of its location in the US or Vietnam, has the same quality, which shows AES’ commitment to investment for the development of the local community.

Besides creating jobs for local workers, AES-VCM always puts safety and environment as its priority. Throughout the construction phase, the power plant always ensured the highest environment requirements of the AES Corporation and the World Bank as well as had a periodically monitoring team with many years of experiences in safety and environment protection. The company has also developed a robust corporate social responsibility (CSR) program that engages the community to improve the livelihoods and the environment in the communities. Great support was also given to education by providing computers, books, furniture and facility upgrade to 10 local schools with about 4,600 students in neighboring areas.

In the coming years, with strong economic growth, the demand for electricity will increase. Power projects which were completed and are under operation such as the Mong Duong 2 BOT Power Plant will have important implications for the development of the national economy. David Stone said that after the success of this project, AES has been very interested the Quang Ninh 3 Thermal Power Project. AES has proposed that the government implement this project under the Power Master Plan VII in order to meet the demand for power in future years.

Hien Dang