Mitsubishi Corp., Japan's largest trading house, and CLP Holdings Ltd joined forces with Vietnam's state-owned utility to build a coal-fired power plant in the Southeast Asian nation.
Hong Kong-based OneEnergy, a joint venture between Mitsubishi and CLP, will set up a venture with state-controlled Electricity of Vietnam to build the plant in the southern Vietnamese province of Binh Thuan, OneEnergy said in a faxed statement.
Vietnam is under pressure to speed up construction of power infrastructure to end shortages. The country buys electricity from China to keep pace with growing demand, particularly during summer, when domestic output from hydroelectric plants falls.
"The project's close proximity to HCM City, its natural deep-harbour characteristics and the strong market fundamentals of Vietnam combine to make it an exceptional opportunity,'' OneEnergy CEO Mark Takahashi said in the statement.
The plant, with 2,000 megawatts of capacity, will be located in the Vinh Tan Power Complex. Construction work is due to start in late 2010 with operations to begin by 2014, the statement said.
The companies have not disclosed costs. The Nikkei English news reported today that investors will spend about 200 billion yen (US$2 billion) for the plant.
Mitsubishi's shares rose 5.2%, breaking a five-day losing streak to trade at 1,669 yen at 10:29 a.m. in Tokyo, the biggest gain since September 22. CLP climbed 5.2% to HK$60.30 in Hong Kong trading, the largest gain since June 2.
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