SN Power Agrees to Develop Renewable Energy with IFC in Vietnam
SN Power and the International Finance Corporation (IFC) have entered into a Joint Development Agreement (JDA) to provide sustainable alternatives for meeting the growing demand for electricity in Vietnam through renewable energy generation.
(Washington D.C., 2 July 2010) The JDA is signed in Washington D.C. between Mr. Bernard Sheahan, IFC Director for Infrastructure, and Mr. Erik Knive, Executive Vice President SN Power Southeast Asia.
This Joint Development Agreement will enable IFC, acting through IFC InfraVentures, an early stage project development fund, and SN Power to develop an investment strategy, policy, and guidelines to address Vietnam’s growing demand for power. The partners will acquire operating assets and invest in greenfield projects to build up a portfolio of renewable energy investments in the country. The project will be IFC’s first investment in Vietnam through IFC InfraVentures, and SN Power’s first partnership in Vietnam.
Vietnam’s economy has grown rapidly since the start of the country’s liberalization policies; however, the electricity supply has not been able to meet the growing demand. Vietnam now faces recurrent blackouts, which pose a threat to future growth and make the need for more reliable power urgent.
SN Power and IFC have collaborated previously on several of SN Power’s global investments in wind and hydropower plants in Chile, India, and the Philippines. SN Power uses IFC’s social and environmental performance standards for conducting due diligence of acquisition and greenfield power projects.
Erik Knive, SN Power’s Executive Vice President for Southeast Asia said, “This IFC partnership will allow SN Power to achieve synergy in terms of finding viable hydropower projects and subsequently develop and operate them in a sustainable manner. SN Power has followed the Vietnamese power market for several years. We believe we can strengthen Vietnam’s long-term renewable generating capacity through our power market experience and technology transfer.”
Anita George, IFC Director for Infrastructure, said, “ We are pleased to work with SN Power, a global sponsor with the financial capability, technical expertise, and commitment to develop power projects in Vietnam. We hope that this joint development agreement will pave the way for a strong portfolio of renewable energy projects and help meet the country’s growing demand for power.”
SN Power specializes in renewable energy, owning and operating wind and hydropower plants in the Philippines, India, Nepal and Sri Lanka in Asia, and in Chile and Peru in South America. It has offices in Singapore, Hanoi and Brazil and recently expanded to new markets in Africa and Central America.
Executive Vice President Communications and CSR SN Power
Executive Vice President SN Power Southeast Asia