The plant, worth VND2 trillion (US$112 million), will be the largest locally invested project in the province. The 100MW power plant would be built on 22.7ha in Dai Tu District’s An Khanh Commune, the company said. The plant would use local coal and was expected to generate jobs for 400 residents.
The company said it would commence construction of the plant early next year, aiming to generate power for the national electricity grid by 2012.
The provincial authorities created favourable conditions for the investor, while offering the firm incentives such as reductions in land rental, corporate income tax and tariffs on machine and equipment imports.
An Khanh will be the second thermo-electric power plant in Thai Nguyen. The first was Cao Ngan Plant of the Viet Nam Coal and Mineral Industries Group which began operating in 2007.
The province has developed a list of projects calling for domestic and foreign direct investment by next year with the focus on industry, mineral processing, agriculture and construction.
Because of the economic crisis, the province has attracted only two foreign investment projects, capitalised at a modest $4.6 million, during the past seven months, ranking 29th among 36 provinces and cities in terms of investment attraction.