Czech's CEZ Signs Deal on Big Power Project in Vietnam
Skoda Praha, a subsidiary of the state-controlled Czech power giant CEZ September 13 signed a memorandum of understanding to build a US$4.5-billion thermo-power plant in Vietnam, a company source said.
The preliminary agreement between Skoda Praha and the state-owned Electricity of Vietnam Group (EVN) was signed during an official visit to Prague by Prime Minister Nguyen Tan Dung, accompanied by a delegation of business representatives.
Skoda Praha will act as the general contractor and will cooperate with some other Czech and Slovak firms to realize the project, said Skoda spokeswoman Ladislav Kriz.
The company has chosen EVN as a dominant Vietnamese counterpart, Kriz said, adding that EVN was in talks with the state Czech Export Bank on financing.
The coal-fired power station will have six 500-MW blocks and will be built in Tra Vinh province in the Mekong Delta region.
Czech and Vietnamese prime ministers backed the deal on September 12, though Czech premier Mirek Topolanek said he believed it was still far from realization.
A Czech delegation will travel to Vietnam in mid-November and CEZ hopes to advance in talks on the power plant with its Vietnamese partner by then.
If possible, the project should cover a fifth of country's power consumption, Czech News Agency (CTK) quoted Dung as saying.
Vietnam, now heavily reliant on hydroelectricity, will give priority to the development of thermal power sources after 2010. (beta.malaysia.news.yahoo.com Sep 13,
www.interfax.com))
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