IFC invests in Vietnamese hydropower firm to help renewables expansion

The International Finance Corporation (IFC), together with a private equity fund, will invest in a hydropower company in Vietnam to support the country's renewable energy sector.

IFC, a member of the World Bank Group, said Thursday it will take a 16% equity stake in Gia Lai Electricity Joint Stock Company (GEC), while Armstrong SE Clean Energy Fund, a Singapore-based renewable energy fund, will take 20%.

The investors will help the Vietnamese company expand its hydropower portfolio and invest in other renewable resources such as wind and solar power. GEC will in this way help the country meet its rapidly increasing power demand and reduce its reliance on imported fossil fuels.

GEC is one of Vietnam's largest private sector hydropower players with 15 run-of-the-river hydropower plants, representing 84.4 MW of installed capacity, according to the announcement.

"We believe IFC's investment is an important step to encourage other investors to tap into the rich potential of Vietnam's green energy sector, where participation by foreign investors is still modest," said Hyun-Chan Cho, IFC head for infrastructure and natural resources for Asia Pacific.

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