WASHINGTON: Plans to build a new coal plant in Vietnam are drawing scrutiny from rich nations that bankrolled a multi-billion dollar finance package designed to help the South-East Asian nation shift away from the fuel.

At issue is the 2.1 Gigawatt Song Hau 2 power plant, now advancing with a grid connection agreement and a nearly US$1bil loan, according to filings.

The plant’s construction could put the country in breach of a limit on coal power generation embedded in the US$15.5bil Just Energy Transition Partnership - or JETP - announced in 2022.

In an emailed statement, the US State Department said it and other international partners continue to encourage Vietnam to pursue its JETP targets for deploying renewable energy and transitioning away from coal-fired power.

“We are closely monitoring reports of possible additional coal plant construction and operation that could complicate those efforts,” the State Department said.

 - Bloomberg