Sumitomo Corp. has signed a memorandum of understanding with the Vietnamese Government to build and operate a coal-fired thermal power plant in the country.
Sumitomo Corp. said it planned to work with a Vietnam construction company, Hanoinco, to build a Y200bn ($2.25bn), 1.32GW supercritical power plant in Khanh Hoa province, south-central Vietnam.
The company aims to sign with the government next summer will give the consortium the right to operate the plant for 25 years, with commercial operations to begin in 2015, according to a spokesman.
The power plant will use coal imported from Australia, which is likely to cost less than coal produced in Vietnam.
