AES has secured a $1.5bn loan to begin construction at its planned 1,200MW Mong Duong II coal-fired power plant in Quang Ninh Province, Vietnam.
The company received the loan from 12 commercial banks and two Korean Government export credit agencies to construct the $1.95bn plant.
AES holds 51% equity in the plant while PSC Energy Global and Stable Investment will own 30% and 19% interest respectively.
Doosan Heavy Industries and Construction and its affiliates will act as the engineering, procurement, and construction contractor, and Vietnam National Coal-Mineral Industries Group will supply locally sourced fuel to the facility, following a 25-year coal supply agreement.
The project is expected to begin commercial operations by the second half of 2015 and will sell electricity to Vietnam Electricity, under the terms of a 25-year power purchase agreement.
Mong Duong II project will comply with the Vietnamese and World Bank environmental standards and will allow lenders to meet the requirements of the equator principles.