The 1,240MW Mong Duong-2 (MD2) coal-fired thermal power plant was developed in the Quang Ninh Province of Vietnam by AES-VCM Mong Duong Power Company, a joint venture between AES Corporation (51%), Posco Energy Company (30%) and China Investment Corporation subsidiary Stable Investment Corporation (19%).

Constructed on a build-operate-transfer (BOT) basis, the power plant comprises two generating units of 620MW gross capacity each.

Mong Duong-2 is Vietnam’s first and biggest coal-fired BOT project and is also the biggest private sector power project undertaken in the country. The $2.1bn project was developed with 100% foreign direct investment. Ownership will be transferred to the Government of Vietnam after 25 years of operation.

A ground breaking ceremony for the project was held in September 2011, and the 620MW first unit was grid-connected in June 2014. The second unit was operational by May 2015.

The project created approximately 6,000 construction and 200 operational jobs. It generates up to 7.6 billion kilowatt hours of electricity annually, which is enough to power more than two million Vietnamese households.

In December 2020, AES Corp signed an agreement to sell its entire stake in Mong Duong-2 power plant to a consortium led by a US-based investor. The transaction is expected to close in late-2021 or early-2022, subject to required approval from the Government of Vietnam and the remaining stakeholders of the coal plant.