Vung Tau Energy Company Limited
MIGA insurance totaling $36 million covers an equity investment by Wärtsilä Vietnam Power Investments Limited in a build, operate and transfer (BOT) power project in Vung Tau Province, south-east of Ho Chi Minh City. MIGA coverage is issued against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves the construction and operation of a 120 megawatt fuel-fired power plant. It will be the first independent power project to be completed in Vietnam after the establishment of the BOT regulations in 1994. The project will create a much needed increase in southern Vietnam's generating capacity.
Wärtsilä Vietnam, incorporated in the Cayman Islands, is a wholly owned subsidiary of Wärtsilä NSD Corporation of Finland, a leading designer and manufacturer of medium-speed diesel engines for power generation. The project enterprise will benefit from substantial transfer of technology from Wärtsilä's international affiliates, and some local businesses will provide engineering, project management, and design-review contractors for the project. Extensive training programs will be provided to local staff to develop their technical and managerial skills.