A memorandum-of-understanding (MoU) for an electricity project was signed between HCM City and SembCorp of Singapore on May 11.

Under the MoU, an air turbine power plant, with a designed capacity of 700 MW, will be built on an area of four ha in the Hiep Phuoc Industrial Zone (Nha Be district). A total investment of US$400-450 million will be spent on the project in the form of BOT (build-operate-transfer) over a period of 30 years.

Procedures for the investment license of the project are expected to be finalised this year.