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POSCO to build second coal-fired power plant

Released at: 16:45, 12/05/2017

POSCO to build second coal-fired power plant

Vietnam Coal-Fired Thermal Power Plant in Quang Ninh province (Photo: poscoenergy.com)

Nghe An plant the group's second in Vietnam after Mong Duong 2 in Quang Ninh.

by Van Dao

The POSCO Group from South Korea has been granted approval to build a second coal-fired power plant in Vietnam.

Valued at $2.5 billion, the Quynh Lap 2 project will be built in Hoang Mai commune, north-central Nghe An province, on a land area of 171 ha and 37 ha of water surface. It will be POSCO’s second coal-fired power in Vietnam, following Mong Duong 2 in northern Quang Ninh province.

Quynh Lap 2 will consist of two units with a total capacity of 1,200 MW and be invested in the build-operate-transfer (BOT) form, with ownership transferred after 25 years of operations.

The project is expected to begin in 2022 and be completed in 2026. POSCO said at a meeting with provincial leaders that the ratio of equity and loans is 25 and 75 per cent. A loan will come from direct export credit funds and an export credit loan guaranteed by Korea Eximbank and Korean Financial Group, with a 15-year term.

Construction of Quynh Lap 1 began in October 2015 with total investment of $2.2 billion and Vinacomin as the investor. It is expected to begin operations in 2020.

POSCO (formerly the Pohang Iron and Steel Company) is a multinational steel-making company headquartered in Pohang, South Korea. It had an output of 42 million tonnes of raw steel in 2015, making it the world’s fourth-largest steelmaker by volume. In 2010, it was the world’s largest steel manufacturing company by market value, and in 2012 was named the 146th largest corporation in the world in the Fortune Global 500.

POSCO also operates 25 domestic subsidiaries and affiliates in areas such as construction, architecture, IT services, and research, etc. It also has 23 overseas subsidiaries and affiliates in countries such as Hong Kong, China, Myanmar, the US, Japan, Brazil, Thailand, South Africa, and Vietnam. It also has plans to increase the number of processing plants overseas to more than 40.

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