Distinguished invitees press a button to start work on the Duong River Surface Water Plant Project in Ha Noi. — VNS Photo
Ground was broken for the Duong River Surface Water Treatment Plant on March 9 in Phu Dong Commune in Ha Noi’s Gia Lam District.
It had received the licence from the Ha Noi People’s Committee only nine months ago.
Considering it is a large project with an investment of US$225 million in phase I, which will spread over 62ha of land and have 76km of pipeline, it is a huge job acquiring land and making other preparations.
The plant is clear evidence of Ha Noi’s commitment to and efforts in attracting investors and creating the best conditions for them.
In his keynote speech at the event, Nguyen Duc Chung, chairman of the city People’s Committee, urged the investors to advance the operation date by three months to 19 months to quench the thirst of Ha Noi’s residents.
The city’s demand for clean water is expected to reach 1.5 million cubic metres a day by 2020 while the current supply is only provide 0.9 million cu.m.
Now it is mostly reliant on groundwater, which is not clean, since surface water supply is limited and not steady.
This major water supply project will meet the needs of around three million people in 168 communes in eight districts of Ha Noi and Bac Ninh and Hung Yen provinces along Highway 179 by 2020.
It will supply 150,000m3 of clean water a day by 2018 and double that by 2020.
This is another high-profile water-related investment by the Vietnam – Oman Investment in Viet Nam.
Nguyen Duc Chung, chairman of the Ha Noi People’s Committee, greets Saif Hilal Al Mahrouqi, Oman’s ambassador to Viet Nam, at the ground breaking ceremony for the Duong River Surface Water Treatment Plant. Seen with them is Abdul Malik Abdullah Zahir Al Hinai, a representative of the Omani Government.— VNS Photo
VOI is a known infrastructure investor in Viet Nam. It was established in 2008 as a joint venture between the sovereign wealth funds of Oman and Viet Nam: the former’s State General Reserve Fund and the latter’s State Capital Investment Corporation.
VOI has shown a strong long-term commitment to value investment in reputed infrastructure projects and companies including power plants, toll roads, water supply, ports and logistics, etc.
In the water sector, VOI has one project in the Mekong Delta, the highest salt marsh in Việt Nam, one project in HCM City, and now this.
In terms of risk appetite, VOI is one of the few private-equity firms in Viet Nam to enter greenfield and brownfield projects because of its deep local understanding and long-term commitment to realising the potential of such projects.
“We are very proud to have VOI as a joint founding partner,” Do Thi Kim Lien, chairwoman of the Duong River Surface Water JSC Company, said.
“Unlike other private-equity firms, VOI has a deep understanding of the water industry and has been enthusiastic even from the pre-feasibility study stage.
“Their deep experience in water projects in Viet Nam has helped us a lot, especially in risk management and corporate governance during this greenfield stage.”
Beyond being just another foreign financial investor, VOI is an active and responsible partner which adds value to investee companies in not just technical but also institutional matters.
Le Quoc Binh, CEO of Ho Chi Minh City Infrastructure Investment JSC (CII), a giant infrastructure player in the south, said: “VOI, as a sovereign fund from Oman, has a very high interest in the socio-economic development of Viet Nam, and has helped us a lot with corporate governance.
“If every private-equity firm in Viet Nam has such commitment and long-term vision like VOI, it would definitely bring a lot of benefit to Viet Nam’s socio-economic development.”
Representing the Omani Ministry of Finance at the groundbreaking ceremony, H.E. Abdul Malik Abdullah Zahir Al Hinai said, “We are happy with VOI’s performance so far with respect to the economic development of Viet Nam and Vietnamese people’s security.
“At the ceremony today I see that VOI has actively contributed to meeting the urgent need for clean water.
“Such a project is evidence of the fruitful co-operation between the two governments for better quality of life for people in both nations.”
A symbol of the strong economic ties between Viet Nam and Oman, VOI hopes to continue investing to meet the critical needs of more than 90 million people and make Viet Nam a highlight in Oman’s investment portfolio. — VNS