Donors support sustainable infrastructure financing for Vietnam
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| Photo: baogiaothong. |
The four countries – Australia, the Netherlands, Switzerland and the United Kingdom – are supporting Mr Nooy’s visit to Vietnam to highlight the continued opportunity for InfraCo Asia to support Vietnam in achieving its objective of accelerating infrastructure development, as set out in Vietnam’s 2016-20 Socio-Economic Development Plan.
The World Bank estimates that, given its rapid economic growth rate, Vietnam will require up to USD $25 billion per year to finance its growing infrastructure needs.
Ahead of the visit, Mr Nooy said: “Vietnam’s economic transformation over recent decades has been the envy of the world. But to sustain its rapid growth, Vietnam will need to continue to increase its spending on infrastructure and we recommend to amend some of its rules and regulations to allow for greater Foreign Direct Investment (FDI) involvement. The private sector is ideally placed to help Vietnam achieve its infrastructure development targets by providing leadership, capital, technology and innovation.”
InfraCo Asia initiates and develops early-stage, high-risk greenfield infrastructure projects and raises domestic and international debt or equity finance to bring projects to a financial close and implementation.
InfraCo Asia’s model has already proved to be a successful means of attracting infrastructure finance to Vietnam. Leveraging private sector investment into sustainable infrastructure projects will play an important role in Vietnam’s transition to a low carbon energy future.
In 2018, InfraCo Asia divested its shareholding in the 29MW Coc San Hydro Power plant in Vietnam’s Lao Cai Province. InfraCo Asia took the Coc San project from distressed asset, through successfully raising financing, completing construction, and into operation. InfraCo Asia, alongside Sunseap, its Singapore-based partner, is currently constructing a 168MWp utility-scale solar power plant in Ninh Thuan province, which is expected to achieve commercial operation in 2019.
InfraCo Asia is a commercially managed infrastructure development and investment company of the Private Infrastructure Development Group (PIDG). The four countries, together with the IFC, Germany’s KfW and Sweden, are co-owners of the PIDG.
