Asia-Paciﬁc Awards PFI
Power Deal of the Year – AES Mong Dnong 2
The US$l .4bn 1 8-year debt facility for US$l .95bn AES Mong Duorrg Power Co has been selected as PFI’s power deal of the year for Asia-Paciﬁc, The l_240MW Morrg Duong 2 power plant is being developed on a build, operate and transfer (BOT) basis.
It boasts a solid contractual str’uct1n’e that was developed using the well-tested Vietnamese BOT framework and comprises a 25-year power purchase agreement (PPA) with state-owned Electricity of Vi etnarn, a BOT contract with the Ministry of Industry and Trade (MOIT), govemnrent guarantee and undertakings (GGU) with the Vietnam govemrnent and a coal supply agreement (CSA) with Virracornin, plus certain ancillary contracts such as the landlease and the water supply agreements.
It is the biggest power plant in the country so far, bigger than the Phu My power plants that were the last plants offered to international investors. Indeed, it has been some few years since international developers have been involved in Vietnarn’s power sector. AES Corp canre into the picture when rt approached the Vietnamese govemrn ent in 2005 following forecasts that armual derrrand would grow by nr ore than 15%.
Another key development, or a turning point, in the progress of the project was AES’s decision to appoint a South Korean contractor — Doosan Heavy Industries & Construction — and its being able to pull in new partners — Posco Power Corp of South Korea and China lrrvestrnerrt Corporation (CIC) of China with 30% and 19% stake respectively.