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EurOrient Financial Group Promotes Cleaner and Renewable Energy Sources in Viet Nam

Posted on: Tuesday, 2 October 2007, 09:01 CDT

EurOrient Financial Group ("EurOrient") promotes cleaner and renewable energy sources in Northern Viet Nam and contemplating USD$125 million investment to help develop wind-based electricity.

The undertaking wind-based electricity generation transaction is being developed on a "build-own-transfer" scheme by an independent power producer and will serve as a catalytic role to catalyzing additional private sector investment in Vietnam's power sector.

The Project will help to develop Viet Nam's renewable energy resources by financing the construction of wind farms with a total power generation capacity of 125 MW, the exact capacity and other specifications are not yet finalized. EurOrient Financial Group will also provide technical assistance and capacity building for the development of the wind-based electricity generation in order to promote further development of wind-based power generation in other provinces.

Viet Nam's strong economic growth over the past decade has fueled growth in demand for electricity by about 15% per year. The country's electricity supply deficit, however, is also growing, especially during the dry season due to its heavy dependence on hydropower.

In a release statement prepared for the media, Mr. Ron Nechemia, the Officer-in-Charge of EurOrient Financial Group said that "Environmental considerations are increasingly becoming integral factors in economic decision-making. Demonstrating environmental sensitivity in core business strategies and activities serves as foundation for achieving sustainable development and lasting competitiveness."

Mr. Nechemia added that the "wind farms will produce electricity without releasing carbon dioxide (which is a greenhouse gas that contributes to global warming), sulfur dioxide, nitrogen oxide and other pollutants into the air. In my view, wind farms are expected to become increasingly viable alternatives for conventional power generation in areas with sufficient wind speeds."

EurOrient's strategy for the power sector focuses on supporting Viet Nam Power Sector Reform, promoting private sector participation, expanding and optimizing transmission and distribution, encouraging interconnection in the Greater Mekong Subregion, and encouraging energy conservation.

EurOrient Financial Group takes equity stakes in private sector companies and other entities such as infrastructure projects, financial institutions, and portfolio and investment funds in developing countries. EurOrient is a Long-term stakeholder in emerging markets and in economies in transitions; EurOrient usually maintains equity investments for a period of 10 to 15 years. EurOrient prefers to exit its investment by selling its shares through the domestic stock market in a way that will benefit the enterprise, often in a public offering.

EurOrient operates on a commercial basis. It invests exclusively in for-profitable projects and charges market rates for its products and services.

EurOrient Financial Group is a private sector global development finance institution. Its mission is to mobilize financial, technical and human resources for the benefit of developing economies seeking sustainable economic development and poverty reduction. EurOrient invests in projects and programs that promote social development, build human capacities, and address host government priorities for investments in physical infrastructure that promotes and enhances social development. These projects include roads, transportation and communication systems, water, sanitation and other types of investments with social development outcomes such as improved quality of life and increased human knowledge and skills.

EurOrient at Glance

Headquarters: Los Angeles, California Website: www.eurorient.org CEO: Mr. Ron Nechemia

Source: Business Wire

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