Spanish interested in PPP deals

Spanish firms have upped their interest in Vietnam’s investment opportunities Photo: Le Toan

Last week saw high-level representatives of Acciona, the world’s biggest waste water treatment specialist, and energy and infrastructure development group come to Vietnam to work with the Ministry of Planning and Investment (MPI) and Ho Chi Minh City authorities on the possible construction of two waste water treatment projects.

Acciona’s international director Ortega-Loizaga Jose Maria said over the past months, the group had worked with the city’s authorities about the possibility of working on the World Bank-funded $450 million Nhieu Loc-Thi Nghe and $230 million Western Saigon waste water treatment plants in Ho Chi Minh City, under a public-private partnership (PPP) agreement.

Singapore’s UE Newater Vietnam and locally-owned DPD Investment and Construction companies have also expressed an interest in the Western Saigon project under PPP.

Maria said Acciona had sought a South Korean investor for jointly implementing the Western Saigon project. The group stood ready to foot the bill for feasibility studies for the projects, and if the municipal authorities agreed to Acciona’s proposals, the projects would be implemented immediately.

“We also want to engage in many other such PPP projects in Vietnam,” Maria stressed.

“If these projects are implemented successfully by Acciona, they will be Vietnam’s first PPP waste water treatment projects, and Acciona will have more opportunities to do many other projects in Vietnam,” MPI Minister Bui Quang Vinh said.

Vinh said Acciona was just among many Spanish investors wanting to do business in Vietnam, after an investment promotion conference held by the MPI in Spain in April. The conference saw the participation of hundreds of Spanish companies.

“Within just three months, sixteen major Spanish firms have come to Vietnam to seek investment opportunities,” he said.

Tran Van Hung, vice president and general director of BPA Group that specialises in producing trains in Europe, told VIR that BPA was assisting Acciona and other Spanish groups like Sacys, OHL, Navantia, Tango, and Mondragon in placing investments in Vietnam in infrastructure development, agricultural plant cultivation, waste water treatment and building-oriented security solutions.

BPA has successfully invested in Vietnam in car spare parts and rubber exports in recent years. BPA is currently seeking investment opportunities in the northern province of Quang Ninh to make wind turbine blades for power plants, desalination plants and waste treatment.

“Vietnam’s need for infrastructure works is huge and BPA’s investments are quite suitable to the country. Vietnam is currently the world’s third largest producer of natural high-quality rubber and this is very attractive to the global car making industry, among other sectors,” Hung said. “Vietnam is also big producer of essential oil used for making perfumes.”

Hung added that Acciona and Tango’s leaders were set to visit Vietnam in the coming period to discuss their participation in PPP infrastructure projects.

Vietnam currently has 38 Spanish investment projects with the total registered investment capital of $36 million.