In order to generate sustainable and predictable income stream, JAKS has diversified into power generation on the international front in 2011, through JAKS Hai Duong Power Company Limited ("JHDP"). JHDP has been granted the Investment Certificate by the Ministry of Planning and Investment of Vietnam on June 2011 to develop a 2 x 600 MW Coal Fired Thermal Power Plant Project in Phuc Thanh Commune, Kinh Mon District, Hai Duong Province, Vietnam ("Hai Duong BOT Thermal Power Plant"), under the form of Build-Operate-Transfer ("BOT") for 25 years.
On August 2011, JHDP has successfully executed main project agreements for the Hai Duong BOT Thermal Power Plant, which include the BOT Contract, Power Purchase Agreement, Coal Supply Agreement, Land Lease Agreement, Government Guarantee and Undertaking Agreement with the Government of Vietnam and other government related entities.
On July 2015, JAKS formed a joint-venture with China Power Engineering Consulting Group Co Ltd ("CPECC"), an integrated power engineering service provider that have been involved in engineering and construction of approximately 49,000 MW of power plant projects, to jointly build and run the USD1.87 billion Hai Duong BOT Thermal Power Plant. (For more information on CPECC, please visit: www.cpecc.net)
Further to this, JHDP had in August 2015, awarded Golden Keen Holdings Limited ("GKHL"), a wholly-owned subsidiary of JAKS, the engineering, procurement and construction contract ("EPC Contract") for a contract sum of USD454.5 million. Under the EPC Contract, GKHL is responsible for the engineering, procurement and construction of certain key infrastructure assets that will support the Hai Duong BOT Thermal Power Plant.
Construction of Hai Duong BOT Thermal Power Plant has commenced in the first half of 2016 and has progressed on schedule in 2017 and 2018. The plant is scheduled to commence generation of power in 2020.