Update: 05:00 | 13/01/2018
(BGO) – The DNP Water Joint Stock Company (DNP-Water) recently signed an investment contract with the International Finance Corporation (IFC), a World Bank Group member specializing in supporting the private economic sector in developing countries.
Building and developing clean water plants are DNP-Water’s strengths.
DNP-Water is the first private Vietnamese firm in the water sector to successfully raise capital from IFC. It is currently headquartered in Bac Giang province.
Under the contract, IFC will sponsor a total of 24.9 million USD for DNP-Water to assist the company’s development strategy for investing in clean water factories in provinces and cities of Vietnam. It pledged to provide 15.3 million USD in the first phase under the form of a loan that could be converted into bonds. The provision of the remaining sum will be considered after the disbursement for the first phase completes.
IFC and shareholders of DNP-Water also signed an agreement to ensure that the company follows the orientation of sustainable development under international standards.
“We highly value IFC’s long-term sponsorship for the water sector, an important sector with swift changes at present. The extensive specialized experience in the water sector of IFC will help us apply the best international practices in Vietnam’s water sector and improve standards sustainably,” said Chairman of DNP-Water Board of Directors Vu Dinh Do.
Meanwhile, Kyle Kelhofer, IFC Country Director for Vietnam, Cambodia, and Laos said expanding the opportunity to use clean water at reasonable costs is an important development goal. IFC’s investment will encourage other private investors to take part in this important project as well as the water sector, which is being equitised in Vietnam.
Kyle said the IFC fund for a private water supply company will help ease the burden of capital investment for the Government and promote the private investment in essential infrastructure to boost the growth of domestic businesses.
DNP-Water, a member of the Dong Nai Plastic JSC - DNP Corp, specializes in operating clean water supply and production factories in Vietnam. It currently owns two water plants and is building two new ones in four localities with a total designed capital of 260,000 cubic meters per day.
In Bac Giang province, DNP-Water is accelerating the construction of a clean water plant with a total investment of nearly 1.5 trillion VND. The project includes two phases, including the first one (2016-2018) with the capacity of 19,500 cubic meters per day, and the second phase (2020-2022) with the capacity of 59,000 cubic meters per day, which could be increased to 80,000 cubic meters per day.
Once completed, the project will provide clean water for An Ha, Yen My, and Tan Dinh communes, Voi and Kep towns as well as urban and residential areas in the south and southwest of Bac Giang city; Dinh Tri, Tan Tien, Dong Son, and Song Khe communes (Bac Giang city); Noi Hoang and Huong Gian (Yen Dung district); Van Trung (Viet Yen district); current and future industrial parks and clusters in Song Khe – Noi Hoang, Van Trung, Dinh Tram, Hoang Mai, Quang Chau, Viet Han, Fuji, and the logistics centre. The plant will be put into operation in late 2018.
Apart from IFC, DNP-Water JSC earlier inked a strategic cooperation agreement with Japan’s Kobelco Eco Solutions Co., Ltd to build and transfer Japan-standard clean water production technology to Vietnamese water plants. DNP Water has set to become a leading clean water investor in scale, advanced technology and international management standards in Vietnam in the next five years.
The IFC, a member of the World Bank Group, is the largest global development institution focusing exclusively on assisting the private sector in developing countries. It has supported more than 2,000 private businesses worldwide. With financial capacity, professional and influence, the IFC has worked to create markets that give new opportunities to people in the world’s most challenging regions.
In the fiscal year 2017, the IFC’s long-term investment in developing countries totaled 19.3 billion USD, helping the private sector make significant contributions to the global efforts to mitigate poverty and bolster prosperous development.