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Wednesday,  Aug 23,2017,07:35 (GMT+7)

VOI deepens investment in water industry

Friday,  Mar 24,2017,19:40 (GMT+7)
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VOI deepens investment in water industry

The groundbreaking ceremony of the Duong River surface water treatment plant was held successfully in Phu Dong Commune, Gia Lam District, Hanoi City on March 9, 2017.
The investor got an investment license from the Hanoi People’s Committee nine months ago. With a total investment of US$225 million in the first phase, the project covers over 62ha of land for the water treatment plant and 76km for pipelines, requiring much time for site clearance and preparation.

Distinguished guests press the button to start construction of the Duong River surface water plant project

The groundbreaking ceremony proved local government’s commitment and efforts in attracting and supporting investors in the capital city. In his keynote speech, Nguyen Duc Chung, chairman of the Hanoi People’s Committee, asked the investor to shorten the construction time from 22 months to 19 months to ease the thirst of local people for stable and clean water supply.

Given the current pace of development, Hanoi’s demand for clean water is expected at 1.5 million cubic meters per day by 2020 versus the existing supply at 900,000 cubic meters, resulting in a shortage of about 600,000 cubic meters a day. Moreover, the city now relies on underground water, which is not clean, while surface water supply is limited and unstable. Therefore, the new project aims to meet the clean water needs of around three million people in 168 communes in eight districts of Hanoi City, Bac Ninh and Hung Yen provinces by 2020. It is projected to produce 150,000 cubic meters of clean water per day by 2018 and 300,000 cubic meters per day by 2020.

This is another high-profile investment by Vietnam-Oman Investment (VOI) in its water portfolio in Vietnam. Known for infrastructure investment, VOI was established in 2008 as a joint venture between two sovereign wealth funds of Oman and Vietnam - the State Government Reserve Fund (SGRF) of Oman and the State Capital Investment Corporation (SCIC) of Vietnam. Given support from the governments of Vietnam and Oman, VOI has shown a strong and long-term commitment to infrastructure projects including power plants, toll roads, water plants, ports and logistics. In the water sector, VOI has invested in a project in the Mekong Delta, which is vulnerable to salinity intrusion, one project in Ho Chi Minh City and this new project in Hanoi.

VOI is one of few private equity firms in Vietnam involved in green-field or brown-field projects because of its profound local understanding and long-term commitment to such projects.

“We are very proud to have VOI as a joint founding partner,” said Do Thi Kim Lien, chairwoman of Duong River Surface Water JSC. “Unlike other private equity firms, VOI has a deep understanding of the water industry and has been joining us even from the pre-feasibility study stage. Their knowledge with water projects in Vietnam has helped us a lot, especially in risk management and corporate governance during this green field stage.”

Le Quoc Binh, CEO of Ho Chi Minh City Infrastructure Investment JSC (CII), said: “VOI, as a sovereign fund from Oman, is highly interested in socio-economic development in Vietnam and has supported us in corporate governance at CII and subsidiaries.”

Nguyen Duc Chung, chairman of Hanoi People’s Committee, shakes hands with Saif Hilal Al Mahrouqi, Omani Ambassador to Vietnam, under the witness of Abdul Malik Abdullah Zahir Al Hinai, a representative of the Omani government

Representing the Ministry of Finance of the Sultanate of Oman at the ceremony, Abdul Malik Abdullah Zahir Al Hinai, said: “We are happy with VOI’s contribution to economic development of the country and people. Today, I see that VOI has made active contribution to solving the urgent need of Vietnamese people for clean water. The project is the evidence of fruitful cooperation between the two governments.”

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