The first six of these IPPs have already begun generating power with a total capacity of 43.1 MW, said the Ministry of Industry and Trade.

The six privately invested IPPs are located in south central Binh Dinh province, the central highland provinces of Gia Lai, Dak Lak and Dak Nong, central Thanh Hoa province and northern Lao Cai province.

Private investors and joint stock companies have been the main financiers of these IPPs following the adoption of a government policy that encourages all economic sectors to invest in building power plants.

The Ministry said that by early April this year, investors had registered to build 217 IPPs with a combined capacity close to 4,100 MW. In 2009, the electricity sector is expected to have another 16 IPPs with a combined capacity of 282 MW.

The electricity industry has called for more investment, saying it is only capable of providing half of the US$3.83 billion per year required in the 2006-2010 period.