08:30 | 12/01/2018 Environment
The International Finance Corporation, a member of the World Bank Group, has committed a convertible loan worth US$15.3 million to DNP Water JSC, a private Vietnamese company, to increase access and the availability of clean water for residents in urban areas.
According to a press release by IFC, as agreed by all parties, the financing package may increase to US$24.9 million to support further growth of the company.
DNP Water aims to expand its portfolio of mainly urban water treatment and supply facilities in Vietnam, and is planning to increase its treatment and supply capacity by five times to one million cubic meters per day by 2025.
IFC’s investment will support the company’s growth by funding the construction of new bulk water treatment plants and the acquisition of equitised water supply companies. This will help improve access to clean water, mostly in second- and third-tier cities in Vietnam.
IFC considers access to affordable and clean water a key development target and expects its investment to help encourage participation of the private sector in this area and in the growing equitised water sector in Vietnam, said Kyle Kelhofer, IFC Senior Country Manager for Vietnam, Cambodia and Lao PDR.
IFC’s financing will further accelerate the leveraging of the private sector for critical infrastructure, and champion the growth of local entrepreneurs, he added.