Dak Mi hydropower plant, operated by a subsidiary of Bitexco Group. Photo: bitexco.com.vn
ORIX Corporation (ORIX), a Japanese integrated financial services group, and UOB Venture Management Pte Ltd., a unit of Singapore-based United Overseas Bank, have announced that they have agreed to acquire $25 million each worth of shares of Bitexco
Power Corporation (BPC).
BCP, a subsidiary of Bitexco Group – a major real estate and infrastructure developer in Vietnam – owns and operates 18 hydropower plants in the country with a gross power capacity of 970 megawatts.
Demand for electric power in Vietnam is expected to increase by an annual average of 10% to 12%, rising from 169.8 terawatt-hours (TWh) in 2015 to 615.2 TWh by 2030, to accommodate rapid economic growth.
Given these circumstances, the Vietnamese government has declared a policy of phased-in liberalization of the electric power market as a way of meeting this vigorous demand, ORIX said in a statement.
This is expected to eventually result in the complete deregulation not only of power transmission, but power generation and the wholesale and retail sale of electric power, providing more room for the entry of private enterprises into the electric power market, it added.
Vietnam launched a competitive power generation market in July 2012 to attract private investment in an effort to restructure the country's power sector, which requires about $4 billion-$6 billion of investments each year.