The Phu My project is the largest in Vietnam, comprising a series of power plants with a combined capacity of up to 3,900MW. It is located in the village of Phu My in Ba Ria-Vung Tau province in the southern part of Vietnam. The complex includes the Phu My 1, 2-1, 2-2, 3 and 4 plants. Together, they meet about 40% of the country’s energy needs.

Vietnam has a severely underdeveloped electricity infrastructure but a rapid growth in electricity demand. The government’s policy of opening the market has created rapid economic growth. It has therefore encouraged rapid expansion in generation capacity to meet this. It is estimated that Vietnam needs to increase its electricity generation from 27 million MW in 2000 to 80 million MW in 2005, 80 million MW in 2010 and 200 million MW in 2020. To do this, the country will need several more power plants.

Phu My 1 Power Plant

The Phu My 1 power plant was built by Mitsubishi Heavy Industries (MHI). It has three combined-cycle gas turbines with outputs of 230MW each, as well as a steam turbine producing 360MW. It is estimated that the project cost $530m.

The turbines are linked in a combined cycle. The plant was ordered in September 1998 and commissioned in May 2000. The steam turbine was added in December. The fully operating power plant can produce 1,090MW.

Japan’s Overseas Economic Co-operation Fund (OECF) and its Overseas Development Agency (ODA) was involved in the financing. Japan provided 85% of the finance and the Vietnamese government contributed 15%.