The Viet Nam National Chemical Corporation (Vinachem) and the Huan Qiu Corporation of China inked a contract on November 15 to construct a fertiliser plant in northern Ninh Binh province.

The 493 million USD contract covers engineering, procurement and construction (EPC) for the plant including investment of 250 million USD in loans from China ’s Eximbank and the remaining from Vinachem and domestic sources.

The project has a total investment of 694 million USD.

Addressing the signing ceremony, Chinese Ambassador Hu Qianwen said the project was an example of modern and environmentally-friendly development through its use of Shell’s advanced technology.

Slated for completion in 2010, the plant is expected to turn out 560,000 tonnes of nitrogenous fertiliser from coal dust and some 71 million kWh of electricity every year.

The plant is expected to join other local fertiliser plants to meet 78 percent of the domestic demand for fertiliser.

Source: Vietnam Agency