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Vietnam Today

CEO of InfraCo Asia meets senior government officials

Released at: 13:59, 23/04/2019

CEO of InfraCo Asia meets senior government officials

Mr. Allard Nooy at the opening ceremony of Coc San Hydro Power plant. Photo: Baolaocai.vn

Company keen on providing infrastructure for Vietnam's future needs.

by Le Diem

Ambassadors from four countries on April 23 jointly introduced the CEO of InfraCo Asia, Mr. Allard Nooy, to senior government representatives from the Ministries of Finance, Planning and Investment, Industry and Trade, and Transportation.

Mr. Nooy’s visit to Vietnam is supported by the cooperation of the four countries - Australia, the Netherlands, Switzerland, and the UK - to highlight the continued opportunity for InfraCo Asia to support Vietnam in achieving its objective of accelerating infrastructure development, as set out in the 2016-2020 SocioEconomic Development Plan.

The World Bank estimates that, given its rapid economic growth, Vietnam will require up to $25 billion per year to finance its growing infrastructure needs.

“Vietnam’s economic transformation over recent decades has been the envy of the world,” said Mr. Nooy. “But to sustain its rapid growth, Vietnam will need to continue to increase its spending on infrastructure and we recommend amending some of its rules and regulations to allow for greater 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.

Its 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 the country’s transition to a low carbon energy future.

In 2018, InfraCo Asia divested its shareholding in the 29MWCoc San Hydro Power plant in northern Lao Cai province. This was the first FDI in hydropower in the northern mountainous region as well as the largest FDI project in the province. InfraCo Asia took the Coc San project from a distressed asset, successfully raising financing, completing construction, and beginning operations. Alongside Sunseap, its Singapore-based partner, InfraCo Asia is currently building a 168 MWp utility-scale solar power plant in south-central Ninh Thuan province, which is expected to start commercial operations this year.

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 PIDG.

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