Tuesday,  Sep 25, 2018,10:17 (GMT+7) 0 0
IFC approves loan for Vietnam clean water project
The Saigon Times Daily
Thursday,  Jan 11, 2018,18:32 (GMT+7)

IFC approves loan for Vietnam clean water project

The Saigon Times Daily

HCMC - The International Finance Corporation (IFC), a private lending arm of the World Bank, has committed a US$15.3-million convertible loan to DNP Water Joint Stock Company to support clean water supply for urban households in Vietnam, IFC announced on Tuesday.

The financing package may amount to US$24.9 million to support further growth of the Vietnam-based private company, according to news website Vietnamplus. The news site did not detail conditions for the loan conversion.

Vu Dinh Do, chairman of DNP Water, was quoted by the news site as saying that IFC’s assistance will help the company bring the best international practices to the Vietnamese water sector and improve its sustainability standards.

The company aims to expand the supply of clean water to urban households and increase its treatment and supply capacity by five times to one million cubic meters per day by 2025. IFC’s investment will support the company’s growth by funding the construction of two large-scale water treatment plants and the acquisition of stakes in water supply companies going public.

At present, only 35% of the Vietnamese population has access to running water. The World Bank estimated that the country needs US$1 billion per year up to 2020 to upgrade and expand its urban water supply system.

Facing fiscal constraints, the Vietnamese Government has called on private companies to invest in clean water supply.

Kyle Kelhofer, IFC senior country manager for Vietnam, Cambodia and Laos, said IFC’s financing in a private company such as DNP Water will help reduce the capital investment burden on the Government, according to Vietnamplus.

It will also accelerate the leveraging of the private sector for critical infrastructure, and foster the growth of local companies.

IFC has extensive experiences supporting private investments in water supply and wastewater treatment worldwide. It has made up to 55 investments totaling US$2.2 billion over the last 10 years.

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