State-owned Petrovietnam has awarded two contracts worth $1.2bn to its subsidiary units to build a 1.2GW coal-fired plant in northern Vietnam.

Petrovietnam Construction received a contract to purchase, install and test-run equipment, including two generators at the planned Quang Trach 1 plant.

Petrovietnam Investment Consultancy and Engineering bagged a $17.6m contract to design the plant, which will use thermal coal imports from Indonesia and Australia.

The first and the second generators, having a combined annual output of 8.4 billion kWh, are expected to commence operations by June 2015 and December 2015 respectively.

Construction at Quang Trach 1 plant, which will sell electricity to state utility Vietnam Electricity group, will start this month, reports Reuters.