Viet Nam’s FECON Corporation and Saudi Arabi’s Acwa Power on Monday signed a Memorandum of Understanding (MOU) for co-operation on joint development of renewable energy projects in Viet Nam.

According to the MOU, FECON and ACWA Power will study and evaluate the opportunities and potential of renewable energy investment in Viet Nam, particularly wind and solar power projects in southern and central regions, such as Binh Thuan and Ninh Thuan. The two parties will then incorporate joint ventures for investment in specific projects.

Paddy Padmanathan, Chief Executive Officer and President of ACWA Power, told Viet Nam News that Viet Nam is the perfect destination for investing in renewable energy thanks to its advantages in available resources, land and decreasing technology cost.

Under the national power development master plan and the renewable energy development strategy of Viet Nam, the Government has prioritised the development of renewable energy by mobilising all resources in order to increase the proportion of electricity from renewable energy sources, especially from wind and solar power, up to 7 per cent in 2020 and 10 per cent by 2030.

Seeing these potential opportunities, ACWA Power decided to choose Viet Nam as its first Southeast Asian investment destination in renewable energy projects.

The co-operation with ACWA Power is in line with FECON’s strategic vision to become a leader in infrastructure development by 2020. FECON Corporation aims at major projects, particularly supporting the Government’s incentives for renewable energy development.

“By joining hands with ACWA, FECON will leverage the strengths of local infrastructure expertise and promote international cooperation for high-technology, cost-effective projects on a win-win basis,” said Pham Viet Khoa, Chairman of FECON Corporation.

FECON was established in June 2004 with the core business of foundation engineering, underground construction and infrastructure development.

ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants with a presence in 11 countries in the Middle East, North Africa, Southern Africa and Southeast Asia.

In Viet Nam, ACWA has a joint venture with Korea-based Taekwang Power Holdings in the Nam Dinh 1 Project with total investment capital of US$2.3 billion. — VNS