Korea East-West Power Company (EWP) has jumped into the construction and operation business of coal-fired power plants in Vietnam in an alliance with Taekwang Group. On March 5, Lee Gil-gu, CEO of EWP signed an MOU with Park Yong-taek, CEO of Taekwang Power Holdings, the legal entity of Taekwang group that is in charge of electric power projects. The MOU is to build and operate a coal-fired power plant in Nam Dinh Province, located in northern Vietnam. Taekwang Group will carry out the project in the form of BOT (Build, Operate, Transfer), constructing and operating a 2,400 MW capacity - coal-fired power plant over two project phases.
The first phase of the plant construction is slated to be completed by 2017 and the second phase by 2021. Upon completion of the construction, EWP and Taekwang will operate the plant for the following 25 years. The project is a US$4.5 billion project, with electric power sales from the plant during the 25 year-operation anticipated to generate US$250 billion in revenue. Various additional benefits from the power plant construction led by the Korean companies, such as the manpower needed for construction and operation of the plant, revenue from consistent export of equipment needed for the construction and operation, and the significant revenue from electric power sales are expected to greatly contribute to the Korean economy.
EWP's unrivaled technology and knowledge in operating fluidized bed thermal power plant facilities, in which EWP is the only company in Korea to possess such technology, was a significant factor behind the signing of the MOU with Taekwang Group. The coal-fired power plant project was approved to Taekwang Group by the Prime Minister of Vietnam on January 14 as a BOT project, with its detailed negotiations regarding contracts for the project expected to progress rapidly upon MOU signing of Taekwang Group and the Vietnamese government scheduled for March 30.
Vietnam has been suffering from a shortage of electric power due to rapid economic development, and the joint EWP and Taekwang Group project is expected to help resolve the country's prolonged problem. Taekwang Group's fame and networks built over many years of successful operation in Vietnam combined with EWP's cutting edge technology are expected to lead to future projects in Vietnam and other parts of Southeast Asia.
Back in January, EWP signed an MOU with Tata group company Tata Power, India's largest integrated private power utility, agreeing to initiate technical cooperation in the field of operation and maintenance opportunities relating to third party generation assets in Asia, the Middle East and Africa, as well as cooperation and the seeking of new business development in the field of thermal, renewable energy. EWP has been constantly working to cooperate with Tata Power since 2008 in order to create a new growth engine by visiting and exchanging information and technologies. Under the signed MOU, EWP and Tata Power will cooperate to develop and promote various projects in foreign countries, using Tata Power's prestigious brand value in the markets of West Asia, the Middle East and Africa combined with EWP's abundant experience and technologies.