The AES-VCM Mong Duong Electricity Ltd Company kicked off construction of the 2.1 billion USD Mong Duong 2 Thermal Power Plant in the northern Quang Ninh province on Sept. 16.

This is a wholly foreign investment project being implemented under Vietnam ’s Build-Operate-Transfer (BOT) regulatory form. The Mong Duong 2 is the largest private sector power project in Vietnam .

Le Duong Quang, Deputy Minister of Industry and Trade, said the plant is one of three thermal power plants to be implemented under the BOT form.

In coming time, the Ministry of Industry and Trade will continue negotiations with foreign investors to implement 11 other thermal power plants with a total capacity of 14,000 MW, Quang said.

The investor of the plant, AES-VCM Mong Duong Electricity Ltd Company, is a joint investment by affiliates of the AES Corporation of the United States (51 percent), Posco Power Corporation of the RoK (30 percent) and China Investment Corporation of China (19 percent).

The project's EPC contractors include Doosan Heavy Industries Vietnam Co Ltd and its subsidiaries.

The coal-fired plant has a designed capacity of 1,120 MW with two units of 560MW each and is expected to produce approximately 7.6 billion kWh annually, once fully operational in 2015. It will be transferred to the Government of Vietnam after 25 years of operation./.