Vietnam awards power license

Wed, 23 May 2001 | Source: REUTERS

HANOI (Reuters): Vietnam on Tuesday granted a license for energy giant BP to go ahead with a US$359 million gas-fired power plant in the south of the country, officials said.

The Planning and Investment Ministry license issued at a ceremony in Hanoi was for the Phu My 3 power plant in Ba Ria-Vung Tau province.

It will take natural gas from the offshore Nam Con Son basin as part of an integrated project worth about $1.3 billion.

BP executives signed a build-operate-transfer contract for the 720-megawatt plant with the Industry Ministry.

At the ceremony, BP also received a government guarantee and undertaking allowing it to convert Vietnamese dong profits into dollars and state utility Electricity of Vietnam signed a contract to purchase the power.

BP holds a 100 percent stake in the Phu My 3 project after the withdrawal this year of Norwegian partner Statoil. The plant will be built by Germany's Siemens.

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