Sembcorp Signs Agreement To Explore Developing A 1,200 Megawatt Power Plant In Vietnam

Sembcorp Industries (Sembcorp) is pleased to announce that its wholly-owned subsidiary, Sembcorp Utilities, has signed a memorandum of understanding (MOU) with the People’s Committee of Quang Ngai Province (Quang Ngai PC) to explore the feasibility of developing a 1,200 megawatt coal-fired power plant in Dung Quat Economic Zone, located in central Vietnam’s Quang Ngai province.

The MOU was signed by Ng Meng Poh, Executive Vice President & Head of Singapore and ASEAN (Utilities) of Sembcorp, and Cao Khoa, Chairman of Quang Ngai PC. The signing took place in Quang Ngai province earlier today and was witnessed by Le Tuan Phong, Deputy Director General, General Directorate of Energy, Vietnam Ministry of Industry and Trade, Low Sin Leng, Executive Chairman of Sembcorp Industrial Parks & Deputy Chairman of Sembcorp Utilities, and Vo Van Thuong, Party Secretary of Quang Ngai province.

Commenting on Sembcorp’s latest development plan in Vietnam, Mr Ng said, “Dung Quat Economic Zone’s rapid industrial development has in recent years supported the tremendous economic growth of Quang Ngai province. It has been earmarked by the Vietnamese government to become a multi-sectorial economic zone and a base for oil refining and petrochemical industries. As such, Sembcorp certainly sees opportunities to invest and further establish our utilities presence in this fast growing region.

“With our combined expertise and proven track record, Sembcorp is well-positioned to offer integrated solutions for Dung Quat Economic Zone’s present and future power needs. We look forward to working closely with Quang Ngai PC on this project.”

This is the second agreement Sembcorp has signed with Quang Ngai PC in the recent six months. Earlier in September 2011, Sembcorp’s Industrial Parks business, through its joint venture in the Vietnam Singapore Industrial Park, also signed a MOU with Quang Ngai PC to conduct a comprehensive feasibility study of a 1,020-hectare integrated township and industrial park in Quang Ngai province. This comprised a 500-hectare industrial park located within Dung Quat Economic Zone and 520 hectares of land zoned for commercial and residential purposes near downtown Quang Ngai city.

“We are pleased that the Group is able to build on the strong relationship that our Industrial Parks business has established in Vietnam and with the Quang Ngai PC. We are confident that, with Sembcorp’s group strength and capabilities, we will be able to offer an integrated approach to support the development of Dung Quat Economic Zone,” said Ms Low.