InfraCo Asia Development Pte. Ltd. (InfraCo Asia), a company of the Private Infrastructure Development Group (PIDG), today announced the divestment of its shareholding in the 29.7MW Coc San Hydro Power Project to Tokyo Electric Power Company Holdings Incorporated (TEPCO HD). InfraCo Asia sold its stake in Viet Hydro, a Singapore-based holding company, through which it indirectly owned 33.4% of the Coc San project.
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 and Gul Ahmed wind power projects.
The US$44.5m Coc San hydro power 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 hydro power in the mountainous province of Lao Cai in northern Vietnam. InfraCo Asia came on board when Coc San was a distressed asset and invested in the development and construction of the plant, which was successfully brought into operation in April 2016. Having created approximately 300 short-term jobs and 30 long-term employment opportunities, the plant continues to be run by LCRE, Coc San’s Vietnam-based project company.
It generates over 120GWh per year of clean energy and has been implemented to stringent international standards with respect to governance, environment, health & safety, and community relations.
Selling our stake in the Coc San project allows InfraCo Asia to further catalyse infrastructure development in our mandated countries. By identifying and mitigating risks early on, we attracted private sector investment to a project that was once considered too risky. Importantly, Coc San facilitates a more reliable power supply for local communities, opening the door for new economic opportunities.