Russia, Vietnam agree deal on nuclear power plant construction
Project may require at least $22 billion investment
Russia and Vietnam signed an inter-governmental agreement on cooperation in construction of the Ninh Thuan 1 nuclear power plant in Vietnam, Russia's state nuclear energy corporation Rosatom said on Monday.
Vietnam needs to secure more electric power as it has faced major power blackouts because demand from its huge industrial sector and expanding middle class often outpaces supplies, strained by more frequent extreme weather, including droughts and typhoons.
The project is part of Vietnam's strategy to boost power generation capacity. Communist-ruled Vietnam has traditionally maintained close ties with Russia.
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Rosatom, the world's leading nuclear power plant builder, said the agreement outlines the terms and main areas of cooperation between the parties in implementing the construction project. No details on cost were specified.
Vietnam's Ministry of Industry and Trade estimates the Ninh Thuan nuclear power project will require investment of at least $22 billion, based on a cost of $5,500 per kilowatt under its draft amendment to the Power Development Plan VIII.
The agreement foresees construction of two Russian-designed power units with a combined capacity of 2,400 megawatts (MW).
According to earlier plans, the total capacity of Ninh Thuan 1 and Ninh Thuan 2 nuclear plants was set at 4,000 MW, with investment estimates previously ranging between $10.8 billion and $12.2 billion.
Work on nuclear plants in central Vietnam started in the early 2010s but was halted in 2016 when Hanoi suspended its nuclear power programme over safety and budget concerns.
Russia had already been awarded the Ninh Thuan 1 project and was expected to sign the deal.
After resuming its nuclear energy programme in 2024, Vietnam asked Japan and Russia to implement the projects. In December, Tokyo decided to drop out of plans to build a nuclear power plant in the country.
The trade ministry is also considering scenarios requiring nuclear capacity of between 4,800 MW and 9,800 MW, citing high investment needs for renewable energy and rising fuel costs.
Under current procedures, a nuclear power project could take about 148 months to bring its first turbine into operation and 158 months for the second, suggesting Ninh Thuan 1 could begin generating power from mid-2037.
However, Prime Minister Pham Minh Chinh has urged authorities to accelerate the timeline, targeting completion by end-2030 or end-2031.
