A file photo of a dam in the central province of Lam Dong. Photo credit: GEC
As Vietnam works to promote renewable energy, its power sector is becoming increasingly attractive to foreign investors.
In the latest deal, the International Finance Corporation, a member of the World Bank Group, has bought a 16 percent stake in Gia Lai Electricity JSC (GEC), a major hydropower developer, news website Dau Tu reported Thursday.
Singapore's Armstrong South East Asia Clean Energy Fund has bought a 20 percent stake in the company, which has invested in 15 hydropower plants with a total output of 84 MW in the central region, it said.
Since GEC's equity was estimated at over VND1.16 trillion (US$51.58 million) as of the end of March, the two deals were possibly worth $18.5 million.
Data from GEC at the end of last year showed conglomerate Thanh Thanh Cong, a major sugar producer, owning 42.29 percent of the company through its subsidiaries.
The energy and water sector has attracted the third largest foreign investment of more than $12.64 billion in Vietnam this year after manufacturing and real estate, according to official data.
The country is on course to have an installed capacity of 75,000 MW by 2020, 46.8 percent of it from coal plants, 24 percent from gas plants and 19.6 percent from hydropower plants.
Renewables will make up 4.5 percent and nuclear power plants, 2.1 percent.