39945 - DNP Water

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Summary of Investment Information

Project Number

39945

Company Name

DNP WATER JSC

Date SPI Disclosed

Oct 16, 2017

Country

Viet Nam

Region

East Asia and the Pacific

Projected Board Date

Nov 30, 2017

Environmental Category

B - Limited

Status

Completed

Last Updated Date

May 5, 2024

Department

Regional Industry - INF Asia & Pac

Industry

Infrastructure

Previous Events

Approved : Dec 13, 2017
Signed : Dec 28, 2017
Invested : Mar 27, 2018

Sector

Water and Wastewater Utilities

Project Description

DNP Water’s business model mainly consists of the development and acquisition of water treatment projects and water supply companies. While DNP Water’s ownership varies from project to project, it usually seeks a majority shareholding in operations whether greenfield or brownfield projects.

DNP Water’s existing water treatment and supply operations (directly and indirectly owned) include: i) 71% ownership of the Binh Hiep water company; ii) 53% ownership of the Dong Tam water plant; iii) 26% ownership stake in the Long An water company; iv) 30% ownership of the Nhi Thanh water project; and v) 33% ownership of the Bac Giang water project. The company’s activities cover 240,000 m3/day of treatment and / or supply capacity.

The International Finance Corporation (IFC) – the private sector investment arm of the World Bank Group – is considering a convertible loan investment in DNP Water to support its growth in the Vietnam water sector.

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	24.90
Equity	0.0

Development Impact

i. Improve water quality and water access for rural areas: Relative to other countries in the region, Vietnam has significantly low levels of piped water access. IFC investment to support DNP Water's rapid growth plans as a result of its investment would help expand water access and quality. ii. Address impact of climate change: Vietnam is struggling with significant water salinity and unsustainable ground water utilization. As a result, expansion of efficient surface water treatment facilities has become increasingly important. IFC investment to support DNP Water's planned expansion of existing and acquired water treatment operations, as well as DNP Water's planned development of new water treatment projects, will support the mitigation of these impacts from climate change. iii. Demonstration Effect: IFC investment will have demonstration effect and will help to promote and facilitate more private sector investment and more foreign investment in the Vietnam water sector.

i. Global Industry experience and knowledge sharing: IFC has unique global and regional experience investing in water companies and thus can share its expertise and best practice in the water sector. IFC will be able to leverage its network to introduce technical and strategic partners to the Company. ii. Promote international practice in E&S and corporate governance: IFC will support and provide guidance for the Company to meet international E&S standards and corporate governance's best practices. This will also help shape and improve the standard of the whole water sector in Vietnam. iii. Strategic long-term investor: IFC is a strategic long-term and patient investor, which the Company needs as it expands its capacity and quality of services. iv. Provide stamp of approval: IFC investment in the Company will provide a stamp of approval to the Company, which will help the Company to raise more finance to meet its growth in the future.

E&S Category Rationale / Risks and Mitigation

The project is defined as a category B project according to IFC’s Policy on Environmental and Social Sustainability given the limited risks and impacts which can be readily mitigated. Key issues associated with the project include: i) ensuring adequate assessment of environmental and social impacts of new projects and effective mitigation where required; ii) implementation of environmental and occupational health and safety management (EHS) systems during construction and operations; iii) labor and working conditions during construction and operations; iv) management of solid and liquid wastes during operations; v) ensuring effective risks management practices for the storage and use of chlorine gas; and vi) land acquisition

Contacts

For Inquiries About the Project, Contact

DNP Water Joint Stock Company
Mr. Le Tuan
Investment Director
+84 91787 5387
Tuan.Le@dnpcorp.vn
10th Floor, HTP Building, 434 Tran Khat Chan, Hanoi, Vietnam
https://www.dnpcorp.vn/

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Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

10th Floor, HTP Building, 434 Tran Khat Chan, Hanoi, Vietnam

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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