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FECON Corporation & ACWA Power sign renewable energy MoU

Released at: 19:57, 03/07/2017

FECON Corporation & ACWA Power sign renewable energy MoU

Photo: Ngoc Lan

Two parties to jointly develop renewable energy projects in Vietnam.

by Ngoc Lan

The FECON Corporation and the Saudi Arabia-based ACWA Power signed a memorandum of understanding (MoU) on July 3 in Hanoi on cooperation in the joint development of renewable energy projects in Vietnam.

FECON and ACWA Power will together study and evaluate the opportunities and potential of renewable energy investments in the country. In particular, they will focus on wind and solar power projects in southern and central regions such as Binh Thuan and Ninh Thuan and will also incorporate joint ventures for investment into projects.

Mr. Pham Viet Khoa, Chairman of the FECON Corporation, told VET that the cooperation presents an opportunity for FECON to increase profits and contribute to the country’s development.

Mr. Paddy Padmanathan, President and CEO of ACWA Power, said that Vietnam has a great deal of potential to develop renewable energy, such as resources in wind, high levels of heat radiation, a large area, and low capital costs. “This is the perfect time to invest in renewable energy in Vietnam,” he said.

According to Vietnam’s national power development master plan and renewable energy development strategy, the government prioritizes the development of renewable energy sources so they may increase by up to 7 per cent by 2020 and 10 per cent by 2030. Wind and solar power are given the greatest attention.

Along with strategy, many incentives and support mechanisms are being developed and finalized to attract investors in the sector.

Seeing the potential, ACWA Power has selected Vietnam as the first country in Southeast Asia where it will invest in renewable energy projects.

By joining hands with ACWA Power, FECON will leverage the strengths of local infrastructure expertise as well as promote international cooperation for high-technology, cost-effective projects on a win-win basis.

The FECON Corporation was established in June 2004 in the core businesses of foundation engineering, underground construction, and infrastructure development. Its total assets stand at over VND3 trillion ($136.3 million) and market capitalization VND1 trillion ($45.4 million), while revenue in 2016 was VND2.1 trillion ($95.4 million).

In Vietnam, ACWA Power has joint ventured with the South Korea-based Taekwang Power Holdings to make investments in the Nam Dinh 1 power project with total investment capital of $2.3 billion. Its objective is to study and make investments in other renewable energy projects such as wind and solar power in Vietnam in the future.

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