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ITACO To Invest $6.7 Billion To Build Coal-Fired Pwr Complex-Official

Tan Tao Investment Industry Corp (ITA.VH), or Itaco, plans to invest $6.7 billion to build a 4,400-megawatt coal-fired power complex in Kien Giang province, a company official said Tuesday.

The province is 250 kilometers west of Ho Chi Minh City.

'Itaco has received government approval to build the country's largest private power center - the Kien Luong thermal power center - for operations starting from 2013,' said company Vice Chairman Nguyen Tuan Minh.

Itaco will also build two ports valued at $1 billion in the province to receive coal, which will be imported from Australia and Indonesia, for the power complex, said Minh.

'We are seeking to sign a contract with Australia's BHP Billiton (BHP) to secure coal supply for our future plants,' Minh said, noting that the Kien Luong plants will consume up to 10 million tons of coal a year when they run at full capacity of 4,400 MW by 2016.

Itaco will soon sign strategic cooperation agreements with banks and financial organizations to raise funds for its investment plans, Minh noted.

Itaco will sign technical consultation contracts later today with U.S.-based Black & Veatch Holding Co. to build the power plants, and with China's FHDI Power Engineering Co. to build the ports.

According to its plans, Itaco will build the first plant with a generation capacity of 600 MW from 2009 for operation from 2013 and is expected to complete construction of the complex by 2016, he said.

Itaco shares ended up 1.3% at VND75,500, higher in comparison with the performance of Vietnam's key index, which was up 1.1% at 548.56.

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