04/27/2012 | Editor: Marcel Dröttboom
Sembcorp Industries has been granted an in-principle approval to develop a 1200 megawatt coal-fired power plant in Vietnam. The project is expected to cost around USD 2 billion. Sembcorp is currently assessing the feasibility of this project.
Singapore – In a ceremony witnessed by Their Excellencies, Singapore President Tony Tan Keng Yam and Vietnam President Truong Tan Sang, Sembcorp’s wholly-owned subsidiary, Sembcorp Utilities, was granted an in-principle approval from Quang Ngai PC to develop a 1200 megawatt coal-fired power plant, to be located in Dung Quat Economic Zone in Quang Ngai province. Sembcorp is currently assessing the feasibility of this project, for which the Group had in January 2012 signed a memorandum of understanding with Quang Ngai PC to explore.
At the same ceremony, Sembcorp’s Vietnam Singapore Industrial Park (VSIP) joint venture was awarded the investment certificate by the People’s Committee of Quang Ngai Province (Quang Ngai PC) for its fifth VSIP project. The joint venture will invest a total of USD 337.82 million in VSIP Quang Ngai. The estimated total equity of USD 40 million will be funded through the joint venture’s internally generated funds. VSIP Quang Ngai will comprise a 600-hectare industrial park located within the Dung Quat Economic Zone as well as a 520-hectare site zoned for commercial and residential development near downtown Quang Ngai city. To kick-start the project, the joint venture will focus on a start-up area of 160 hectares for the industrial park and 100 hectares for commercial and residential development. In addition to Quang Ngai province’s strategic location, manufacturers located in the VSIP Quang Ngai will also be offered government-supported special economic zone incentives.
VSIP is a joint venture between Vietnam’s Becamex IDC Corporation with 49 per cent shareholding and a Singapore consortium holding 51 per cent share. Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries, holds 79.29 per cent share in the Singapore consortium. The joint venture currently has two projects located in the southern economic zone of Binh Duong province, and two projects located in the northern economic zone’s Bac Ninh province and Hai Phong city.
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