According to the ADB, the expansion is expected to increase production capacity, install additional water intake pumps, and build raw water transmission pipes from the Dong Nai River intake facility.
A further USD500,000 in technical assistance will be provided by the e-Asia and Knowledge Partnership Fund, established in 2006 by the Republic of Korea to help ADB’s developing members meet their development goals through the creation and sharing of experience, information, and knowledge.
Speaking at the event, Infrastructure Finance Division Director for Southeast Asia, East Asia, and the Pacific at ADB's Private Sector Operations Department, Jackie B. Surtani, said that this financing would deliver sustainable and efficient water supplies in this fast-growing province, spurring its future growth and contribution to the broader economy.
"It is a strong signal to other international financiers that private sector commercial financing of Vietnam’s water sector is feasible and attractive. We are also very happy to work with the Japan International Cooperation Agency on this transaction to support water sector development in Vietnam,” he said.
BIWASE’s chairman of the board of directors Nguyen Van Thien said that they value the long-term relationship with ADB, which goes back since 2002 when we participated in the third provincial towns water supply and sanitation project.
“We appreciate the continued support from ADB in providing a one-stop solution to enable BIWASE to transition from sovereign financing to standalone private sector financing as it continues on its growth path," Thien said. "We look forward to ADB’s continued engagement with the water sector in Vietnam and hope to work with ADB again in the future.”
The technical assistance will provide capacity building on financial management and climate-resilient business and operational planning. It will also enhance the legal foundation of the business and operational framework between BIWASE and the Binh Duong Provincial People’s Committee.
BIWASE was founded in 1975 as a government-owned entity. It became a joint-stock company in 2016 and listed on the Ho Chi Minh Stock Exchange in 2017. Currently, BIWASE has a total daily water production capacity of 311,300 cubic meters, and its services cover 78% of Binh Duong province’s population. BIWASE is also the province’s sole provider of municipal solid-waste treatment and municipal wastewater and sanitation services.
