14 November 2018

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InfraCo Asia

Insights InfraCo Asia

Special Edition: Coc San Divestment

Dear ,

This Special Edition of InfraCo Asia Insights focuses on InfraCo Asia's recent divestment of its shareholding in the Coc San Hydro Power project to TEPCO. 

Exiting the project on commercial terms supports the success of InfraCo Asia's unique business model and allows funds to be recycled into future infrastructure projects in south and south east Asia. 

 

The 29.7MW Coc San Hydropower project in Vietnam's Lao Cai Province. 

 

InfraCo Asia Sells Stake in Coc San Hydro Project

 

This 2:30 video tells the story of Coc San through the voices of InfraCo Asia CEO, Allard Nooy; The Private Infrastructure Development Group (PIDG) CEO, Philippe Valahu; and Nhu Quynh Ta, General Director of LCRE, Coc San’s Vietnam-based project company.

 

InfraCo Asia, a company of the Private Infrastructure Development Group (PIDG), divested its shareholding in the Coc San Hydropower project to TEPCO, Japan’s largest power company group, on 9 November, 2018. InfraCo Asia indirectly owned 33.4% of the Coc San project through its stake in Viet Hydro, a Singapore-based holding company. A press release about the news is available here. 

By fully divesting its shareholding, InfraCo Asia can now recycle the proceeds into future infrastructure development projects. InfraCo Asia’s first complete exit from a utility-scale renewable energy project occurred in September 2017, when it divested its stake in the Pakistan Metro Wind and Gul Ahmed wind power projects.

The US$44.5M Coc San hydropower project is owned and operated by Lao Cai Renewable Energy (LCRE), which is backed by Vietnamese and foreign private investment. It represents the first foreign direct investment in the hydro power sector in the mountainous province of Lao Cai in northern Vietnam.

 
 

Representatives from InfraCo Asia, TEPCO, and InfraCo Asia’s advisors at the exchange of documents for the completion of the divestment​. 

 

Coc San's Development Impact

 
 
 

The Coc San project created approximately 300 short-term jobs and approximately 30 long-term employment opportunities. It generates more than 120GWh per year, providing approximately 87,000 people with improved access to electricity. In addition, the clean, renewable power produced by Coc San means 76,000 tonnes of carbon emissions are reduced per annum.

The Coc San project also includes two programs to support local people. These are carried out by LCRE, with the backing of its shareholders, and include:

• A Community Development Program: To date, the Community Development Program has achieved the rehabilitation of three schools and the construction of an access road, enabling easier movement of farm produce. Scholarships continue to be provided to enable local children to attend school and purchase books and uniforms.

InfraCo Asia Investment Manager, Karen Tsang-Hounsell, stands with children from a school rehabilitated through the Coc San project's Community Development Program.​

 

• A Livelihoods Restoration Program: Designed to assist people whose land was impacted by the project to re-instate income-producing activities, the Livelihoods Restoration Program includes training in construction and a program to improve crop yields, with support from local agricultural departments. Provision of breeding sows and goats has also been implemented and is ongoing.  

 

Media Coverage of Coc San Divestment

 

A number of media outlets covered the Coc San sale. These included IJGlobal, who spoke with both Allard Nooy and PIDG CEO Philippe Valahu about the challenges faced by the project, and the way InfraCo Asia and PIDG companies collaborated to turn the project around and bring it to the point of divestment. 

Other outlets covering the news included Inframation and Deal Street Asia. Allard Nooy will present a case study of Coc San at the PEI Infrastructure Investor Hong Kong Summit, held on 14 November. 

This communication is confidential and/or privileged and/or subject to copyright and is intended only for the recipient(s) to whom it is addressed. If you are not the intended recipient, then please do not read, copy, use or disclose the contents of this communication to others.  The following conditions apply to and are deemed to be incorporated by reference in this communication: http://infracoasia.com/wp-content/uploads/2017/07/InfraCo-Asia-Communications-Disclaimer.pdf.

InfraCo Asia Development Pte. Ltd.

Level 18 Republic Plaza II
9 Raffles Place, Singapore 048619
T:  + 65 6823 6860   E: info@infracoasia.com

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