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Itaco to build $7.8 bln power plant

HANOI, April 3 - Vietnam industrial park developer Itaco ITA.HM plans to invest up to $7.8 billion in a coal-fired power plant and port complex to meet soaring energy demand, the company's president said on Thursday.

The power plant, to be located in the southern province of Kien Giang, will use 100 percent imported coal, Itaco President Dang Thi Hoang Yen said in a telephone interview from Ho Chi Minh City.

"Our plan is to start construction of the power plant and the port by the fourth quarter of next year at the latest," Yen said.

"At the moment we are working with several top international financial organisations and banks on financing plan and we are looking for the most profitable scheme," she said.

In addition to bank loans, Yen said the company, which has a market capitalisation of about $500 million, would also issue new shares and bonds to raise funds for the investment.

Yen said the power plant, which would become operational by the end of 2013, would sell electricity directly to industrial users at Itaco's industrial parks around the country via the state-owned utility group EVN's grid.

She also said Itaco had secured a deal with EVN under which EVN would purchase all extra power supply from the plant.

Shares in Itaco closed up 0.69 percent at 73,000 dong ($4.6) on Thursday.

Itaco operates Tan Tao Industrial Park in Ho Chi Minh City and is developing a host of industrial parks and real estate projects in Vietnam.

Source: Reuters