IFC funds clean water access project in Vietnam
Updated : Wednesday, January 10, 2018 9:52 AM (GMT+0700)

TheInternational Finance Corporation, a member of the World Bank Group, hascommitted a convertible loan worth 15.3 million USD to DNP Water JSC, a privateVietnamese company, to increase access to and availability of clean water forresidents in urban areas.

 
Illustrative photo - Source: VNA

According to a press releaseby IFC, as agreed by all parties, the financing package may increase to 24.9million USD to support further growth of the company. 

DNP Water aims to expand itsportfolio of mainly urban water treatment and supply facilities in Vietnam, andis planning to increase its treatment and supply capacity by five times to onemillion cubic meters per day by 2025. 

IFC’s investment willsupport the company’s growth by funding the construction of new bulk watertreatment plants and the acquisition of equitised water supply companies. Thiswill help improve access to clean water mostly in second- and third-tier citiesin Vietnam. 

IFC considers access toaffordable and clean water a key development target and expects its investmentto help encourage participation of the private sector in this area and in thegrowing equitised water sector in Vietnam, said Kyle Kelhofer, IFC SeniorCountry Manager for Vietnam, Cambodia and Lao PDR. 

IFC’s financing will furtheraccelerate the leveraging of the private sector for critical infrastructure,and champion the growth of local entrepreneurs, he added.

IFC has extensive experiencesupporting private sector investments in water and waste water worldwide. Itmade 55 investments totaling 2.2 billion USD, including mobilisation, in thelast 10 years.

“We greatly appreciate IFC’slong-term funding in an important, but quickly changing sector”, said Vu DinhDo, DNP Water Chairman. 

“IFC’s extensive watersector expertise will further help us bring international best practices to theVietnamese water sector and improve our sustainability standards”, hesaid. 

Currently only about 35percent of the Vietnamese population is connected to piped water. According tothe World Bank’s estimates, the country needs investments worth 1 billion USDper year to 2020 for urban water supply to meet its current and future growthdemands. While the government is aware of this challenge, it faces fiscalconstraints and has called for increased private funding for clean water and piped-watercoverage expansion.

Source:VNA

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