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7 March 2007 - Australia's Ensham will pump in $4bn to increase capacity of a thermoelectric plant in southern Vietnam to 3600 MW.

Construction work on the plant is scheduled to start in late 2008 in Kien Giang province, and become operational in 2012. The company will pour $400m into building a deepwater port in the province to serve coal transport from Australia to Vietnam to fuel the plant.

In 2006, Ensham was licensed to invest $1bn in constructing the power plant with capacity of 1000 MW. The project will be implemented in the mode of either build-operate- transfer (BOT) or build-operate-own (BOO).

Vietnam's electricity demand is forecast to annually grow 15-16 percent until 2010, according to the Hanoi's industry ministry. It plans to increase its electricity capacity to 25 000-26 000 MW in 2010 from 11 400 MW in 2005, meeting demand for its socio- economic development.

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