The Viet Nam Chemical Corporation (Vinachem) has received the nod from the Prime Minister to enter a contract with its Chinese partner in building a fertiliser plant in northern Ninh Binh province.

The Engineering, Procurement and Construction (EPC) contract for the project will be signed between Vinachem and China’s Huan Qiu company.

The PM requires Vinachem to work with the Finance Ministry and the Ministry of Planning and Investment for the use of a preferential export credit worth 500 million USD for the project from the Chinese government.

The Ninh Binh fertiliser-coal plant will be capable of churning out 560,000 tonnes per year.

Scheduled to be completed by 2009, the plant will provide enough fertiliser for farmers in northern Viet Nam, who usually spend over 90 million USD per year to import fertiliser.

The project is expected to generate more than 71 million kWh of electricity per year.