Phu My 2.2

active

In January 1999, Mekong Energy Company won the competitve bidding process to build the Phu My 2.2 power plant, a 715 MW, gas-fired combined cycle plant located at the Phu My power complex in the Tan Thanh district of Ba Ria-Vung Tau province. Gas was to be provided by PetroVietnam (the state-owned gas company) from the Nam Con Son offshore gas field under a gas supply agreement signed in September 2001 for 0.85 billion cubic meters per year. The plant was to sell power to state-owned utility Electricite de Vietnam (EVN) at US$ 4.04 cents per kWh under a 20-year power purchase agreement. Mekong Energy was owned by Electricite de France International (56.25%), Sumitomo Corp (28.125%), and Tokyo Electric Power Co (Tepco, 15.625%). This build, operate, transfer (BOT) project was expected to cost US$480 million. Financial closure was reached on October 31, 2002. Total debt was US$340 million and was comprised of a US$75m World Bank (IDA) Political Risk Guarantee (PRG) facility, US$25m ADB PRG facility, US$50m ADB ordinary capital resource (OCR) facility, US$150m Japan Bank for International Cooperation (JBIC) direct loan facility and a US$40m Proparco direct loan facility. Finally, a commercial loan of US$100m was covered by ADB and IDA. Construction started on January 2003, and the plant was formally inaugurated in October 2005.