Truong Khac Hoanh (L), general director of Saigon Water, shakes hands with Gerardo C. Ablaza, CEO of Manila Water, at the investment agreement signing ceremony in HCMC on Monday - Photo: Van Nam

Truong Khac Hoanh (L), general director of Saigon Water, shakes hands with Gerardo C. Ablaza, CEO of Manila Water, at the investment agreement signing ceremony in HCMC on Monday – Photo: Van Nam

August 20, 2013 BY THESAIGONTIMES

Van Nam

Truong Khac Hoanh, general director of Saigon Water, told the Daily on Monday that the sector of treating and distributing clean water in Vietnam was in need of large investment. Investors have to be financially capable, and apply modern technology and solutions to water loss reduction in distributing if wanting to earn high profits, he said on the sidelines of a ceremony for signing an agreement with Manila Water in HCMC on Monday.

Saigon Water on Monday cut the deal to issue 18.37 million shares worth VND400 billion to Manila Water. The local firm expects to have stronger financial capability and more experiences in water treatmentafter the deal.

HCMC Infrastructure Investment Joint Stock Company (CII) and Manila Water are two major shareholders of Saigon Water.

In the coming time, Saigon Water will build Pleiku water plant in Gia Lai Province and Du Long plant in Ninh Thuan Province which are worth a combined VND400 billion and have respective treatmentcapacities of 30,000 and 15,000 cubic meters per day.

Besides, Saigon Water is preparing to develop Tan Hiep 2 water plant which is expected to treat 300,000 cubic meters of water per day in HCMC’s outlying district of Hoc Mon. The firm has received approval from the city government to implement the project which will be kicked off next year.

According to Gerardo C. Ablaza, CEO of Manila Water under thePhilippines’ Ayala Corporation, Manila Water has invested around US$100 million in Vietnam’s water treatment sector, including a 49% stake in BOO Thu Duc and a 47% stake in Kenh Dong water plants in HCMC.

Ablaza said that via Saigon Water, Manila Water would continue to invest in clean water treatment projects in HCMC, and will eye wastewater treatment projects in neighboring provinces and clean water supply projects in central provinces.

Fernado Zobel De Ayala, chairman of Ayala Corporation, noted the wide investment chance in the clean water treatment sector in Vietnam. The corporation will continue to make investments in the sector via cooperation with Saigon Water, he said.

According to Saigon Water Corporation (Sawaco), water in HCMC is supplied by Thu Duc, Binh An, Tan Hiep, Trung An, Kenh Dong and Tan Phu water plants having a total treatment capacity of nearly 1.7 million cubic meters per day.

Sawaco targets to increase the treatment capacity to 3.4 million cubic meters, upgrade over 1,500 kilometers of water pipelines, build a water supply management system and reduce the water loss to 25% in 2025. However, such projects will need up to US$2.5 billion, to be mainly sourced from official development assistance (ODA) loans.

Source: www.talkvietnam.com