Egat International (Egat-I), a unit of Thailand's Electricity Generating Authority, has enhanced its Asean presence by joining with the Vietnamese Industry and Trade Ministry to develop two power projects in Vietnam's Quang Tri province.
The two partners signed a memorandum of understanding (MoU) on Tuesday that outlined Egat-I will be the investor and developer of two thermal power plants in the Quang Tri Special Economic Zone (SEZ).
Thana Putarungsi, Egat-I's acting managing director and Egat's deputy governor for transmission systems, did not reveal the amount of the investment or the projected revenue generated from the project.
More details will be revealed after Egat-I signs a similar MoU with the Quang Tri local administration in mid-July, he said.
The two thermal cogeneration plants will produce 600 megawatts each. The first coal-fuelled power plant is scheduled to complete construction and go online in June 2021, with the other starting production in December 2021.
Egat-I will have to submit feasibility and environmental impact studies to the Vietnamese ministry by December. Once the ministry approves the project, negotiations on a power-purchasing contract, term of concession and contract guarantee with the Vietnamese government can begin.
The Quang Tri power project is part of the Vietnamese's seventh master power development plan, which spans 25 years and covers build-operate-transfer programmes.
Vietnam Electricity plans to buy the output and feed the electricity to the SEZ, which is projected to be an industrial hub in central Vietnam.