Mong Duong power station

From Global Energy Monitor

Mông Dương power station is a 2,320-megawatt (MW) coal plant complex in Quảng Ninh province, Vietnam.


The undated satellite photo below shows the plant site, which is in Mông Dương ward, Cẩm Phả city, Quảng Ninh province.

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Mông Dương-1

In 2006, the Vietnamese government applied for a loan from the Asian Development Bank for the construction of Mông Dương-1, a proposed two-unit, 1,080-MW, mine-to-mouth coal-fired power plant in the Mông Dương district of Cẩm Phả city, in the heart of Vietnam's coal mining region. At the time, Electricity of Vietnam (EVN), the sponsor of Mông Dương-1, was going through privatization.[1][2]

In October 2011, after years of apparent delays, construction on Mông Dương-1 broke ground, with Hyundai Construction & Engineering, a subsidiary of Hyundai Motor Group, serving as engineering & construction contractor.[3] The first unit went online in March 2015, and the second unit in October 2015.[4][5] By May 2015, both units had been successfully tested;[6] however, both units were apparently still under construction at that point.

In December 2014, a financing agreement for the project was closed. The Asian Development Bank and Export-Import Bank of Korea provided US$1,440.85 million in loans.[7]

Unit 1 was completed in September 2015 and Unit 2 was completed in December 2015.[8]

Mông Dương-2

In December 2008, the Vietnamese government agreed to grant an investment license to AES-VCM Mong Duong Power Company — a joint venture of U.S. company AES, Korea's POSCO, and China Power Investment Corporation — to build the 1,200-MW Mông Dương-2.[9] The project is also listed at 1240 MW (2 x 620 MW).[10] In Dec. 2010, with all necessary permits in hand, AES hired Korea's Dooson Heavy Industries, a subsidiary of the Doosan Group, to build the plant, with completion scheduled for 2015.[10]

AES began construction in Sept. 2011, after gaining $1.5 billion in financing from 14 banks & credit agencies for the $2 billion project.[11][12] Korea Trade Insurance Corporation (K-Sure) provided US$839 million in coverage for the portion of the financing provided by private banks, leaving US$280 million uninsured. The Export-Import Bank of Korea provided US$342 million of the total debt financing.[13]

The plant will revert to Vietnamese government ownership after 25 years of operation.[14] Unit 1 was completed in March 2015,[15] and Unit 2 was completed in May 2015.[16]

In August 2019 a refinancing package for Mông Dương-2 was announced.[17] This involves a US$1.1 billion new debt package aimed at refinancing the remaining outstanding loan for the plant, whereby the proceeds from a new loan and bond issue will be used by AES-VCM Mong Duong Power Company to purchase the original project loan from the existing lenders. Citi, HSBC, Standard Chartered and Sumitomo Mitsui Finance Group are the main arranging banks on the refinancing package.

In January 2021, AES announced its intention to sell the entirety of its 51% equity stake in the Mong Duong II power station, in line with its goals to make its operations more sustainable. The purchaser was said to be "a consortium led by a U.S.-based investor", but specific entities were not named. The transaction was expected to be finalized by late 2021 or early 2022.[18]

According to AES' annual SEC report published in February 2022, the sale was expected to close in early 2023. The agreement was subject to approval by the Vietnam government.[19]

Project Details

  • Sponsor: Electricity of Vietnam (Mông Dương-1); AES-VCM Mong Duong Power Company (Mông Dương-2)
  • Parent company: Electricity of Vietnam (Mông Dương-1); AES, POSCO, and China Power Investment Corporation (Mông Dương-2)
  • Location: Mông Dương ward, Cẩm Phả city, Quảng Ninh province, Vietnam
  • Coordinates: 21.07324, 107.34847 (exact)
  • Status: Operating (Mông Dương-2); Operating (Mông Dương-1)[12]
  • Gross Capacity:
    • Mông Dương-1 - 1,080 MW (2 x 540 MW)
    • Mông Dương-2; 1,240 MW (2 x 620 MW)
    • Note: Revised Power Development Plan VII lists Phase I at 2 x 500 MW and Phase II at 2 x 600 MW[20]
  • Type: Circulating fluidized bed (Mông Dương-1)[15]
  • In service: Mar. 2015 (Mông Dương-1 Unit 1); May 2015 (Mông Dương-1 Unit 2); Mar. 2015 (Mông Dương-2 Unit 1); Q3/4 2015 (Mông Dương-2 Unit 2)
  • Coal Type: Anthracite
  • Coal Source: Vinacomin (Mông Dương-2)
  • Source of financing: Mông Dương-1: Export-Import Bank of Korea 40%, Asian Development Bank 60%;[16]

Mông Dương-2: US$1,461.29 million in debt from HSBC, ING Group, Sumitomo Mitsui Banking Corporation, BNP Paribas, Standard Chartered Bank, CIC Bank, Natixis, Societe Generale, Credit Agricole Group, UniCredit, DZ Bank, Mizuho Financial Group, and Export-Import Bank of Korea; US$487 million in equity from POSCO, AES Corporation, and China Investment Corporation;[13] US$1,163.91 million in refinancing debt from HSBC, SMBC Nikko Securities, Citigroup, and Standard Chartered Bank[21]

Articles and resources


  1. Mong Duong 1 Thermal Power Project In Vietnam, Devex website, accessed Jan. 2014.
  2. ADB Electric Power Investment in Vietnam, U.S. Chamber of Commerce Vietnam, Sept. 21, 2007.
  3. Nhiệt điện Mông Dương 1, Power Engineering Consulting JSC I website, accessed Jan. 2014.
  4. Mong Duong 1 Thermal-Power Plant: 1B Steam Drum Successfully Installed, Quanh Ninh provincial website, Aug. 30, 2013.
  5. Mong Duong Thermal Power Plant 1 to soon connect to grid, Vietnam Economic Times, 10 Jan. 2015.
  6. Tổ máy số 2 Dự án Nhiệt điện Mông Dương lần đầu hòa lưới điện Quốc gia thành công, EVN press release, 29 May 2015.
  7. "Preview of Mong Duong 1 Thermal Power Plant | Transaction | IJGlobal". Retrieved 2020-11-30.
  8. Jung Min-hee, "Vietnamese Thermal Power Plant - Hyundai E&C Completes Mong Duong 1 Thermal Power Plant Construction in Vietnam," Business Korea, 19 January 2016
  9. Vietnam to Approve AES Coal-Fired Power Plant, Reuters, Dec. 28, 2008.
  10. 10.0 10.1 Doosan Heavy to Build 1240 MW Coal Power Plant in Vietnam, Power Engineering, Dec. 14, 2010.
  11. AES Starts Building Mong Duong II Power Plant After Securing US$1.5 billion Financing, EnergyAsia, Sept. 2, 2011.
  12. 12.0 12.1 Tổ máy số 1, Nhà máy Nhiệt điện Mông Dương II tiến hành đốt dầu lần đầu vào ngày 27 và 28-2, Bao Quang Ninh, Feb. 15, 2014.
  13. 13.0 13.1 "Preview of Mong Duong 2 Coal-Fired Power Plant (1.24GW) IPP | Transaction | IJGlobal". Retrieved 2020-11-30.
  14. BOT Power Plant to Start Operation Next Year, Vietnam Breaking News, Oct. 17, 2013.
  15. 15.0 15.1 Mong Duong coal-fired power plant enters operation, Vinacomin press release, 12 Mar. 2015.
  16. 16.0 16.1 AES Achieves Commercial Operation of 1,240 MW Mong Duong 2 Plant in Vietnam, AES Corp press release, 11 May 2015.
  17. Mong Duong Finance eyes $485m to take out project financing, Global Capital Asia, 12 Aug 2019.
  18. US energy giant to pull out of northern coal-fired power plant, VnExpress, Jan. 7, 2021
  19. Form 10-K Aes Corp, United States Securities and Exchange Commission, February 28, 2022
  20. DANH MỤC CÁC DỰ ÁN NGUỒN ĐIỆN VÀO VẬN HÀNH GIAI ĐOẠN 2016 - 2030, Ban hành kèm theo Quyết định số 428/QĐ-TTg ngày 18 tháng 3 năm 2016 của Thủ tướng Chính phủ (LIST OF POWER PROJECT IN OPERATION PERIOD 2016 - 2030, Issued together with Decision No. 428 / QD - TTg of March 18, 2016 by the Prime Minister)
  21. "Preview of Mong Duong 2 Coal-Fired Power Plant (1.24GW) Refinancing 2019 | Transaction | IJGlobal". Retrieved 2020-11-30.

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