Asia and Oceania

Construction begins at Vietnam’s 180-MW Srepok 3

Vietnam hydro plant and infrastructure builder Cavico Corp. announced July 18 its affiliate, VINAVICO, has begun construction preparations for the 180-MW Srepok 3 hydroelectric project.

Cavico said VINAVICO, a member company of Cavico Vietnam, has begun constructing a base camp, moving machinery to the job, and distributing labor for Srepok 3 (also spelled Serepok or Sre Prok) northwest of Dalat.

VINAVICO, which is 37 percent owned by Cavico, is the primary unit responsible for building the dam and pressure shafts, under an 810 billion dong (US$54 million) contract. The project is to be completed in 2010 for a total investment of 3,168 billion dong (US$211 million).

BQLDA (Project Management Unit No. V) is the main contractor for the project, which is owned by Electricity of Vietnam (EVN).

EVN sells bonds to build three projects

EVN announced it is selling 900 billion dong (US$56.4 million) in five-year bonds to raise money for three more hydropower projects, 320-MW Ban Ve, 330-MW Se San 4, and 163-MW An Khe Kanak.

The bonds are being sold through Vietnam’s stock exchange and carry an annual coupon of 9.5 percent during the first year. Proceeds, underwritten jointly by Australia and New Zealand Banking Group and Saigon Securities Inc., are to finance construction of the three plants.

Vinh Son-Song Hinh Hydro debuts on Vietnam exchange

Vietnamese hydropower project company Vinh Son-Song Hinh Hydro Power Plant Co. began trading July 17 on the Ho Chi Minh City Securities Trading Center, one of Asia’s hottest stock markets this year.

The company, which is based in Binh Dinh, operates the 66-MW Vinh Son and 70-MW Song Hinh hydroelectric projects. Electricity of Vietnam partially privatized the firm in 2004 and still holds 60 percent.

Only 74,300 shares were traded on opening day at 35,500 dong (US$2.22) each, slightly above the 35,000 dong it last traded July 3 on the Hanoi over-the-counter market. A Hanoi investor said the tiny volume reflected a lack of investor interest in Vietnam’s heavily regulated power plant sector.

Vinh Son-Song Hinh joins Ry Ninh 2 Electric Co., operator of the 81-MW Ry Ninh 2 hydro project, which recently began trading on the exchange.