The Private Infrastructure Development Group (PIDG) has made an equity investment of VND 218.6 billion – equivalent to USD 8.68 million – in Hoa Binh-Xuan Mai Clean Water Limited Liability Company, a project by AquaOne Water Corporation. Deployed through PIDG’s project development solution, InfraCo, the funding will be used to develop a potable water treatment facility comprising raw water intake system, treatment line, storage, transmission and distribution pipeline components. The plant will process 150,000 cubic metres of water per day and will supply improved access to treated water in rural and suburban parts of Phu Tho province (previously Hoa Binh).
Dennis Foo, PIDG’s Head of Business Development (Asia) – InfraCo, said:
“Equity investments in infrastructure projects play a pivotal role in de-risking early-stage development and catalysing broader private sector participation. Through our investment in AquaOne, we aim to prove the commercial viability of large-scale, greenfield water projects in Viet Nam. This will show that critical infrastructure can be bankable while delivering sustainable impact for communities as well as strengthen private sector participation.”
Hoa Binh-Xuan Mai will be developed and operated with guidance from PIDG’s project development and impact teams, with a focus on health, safety, environmental, and social (HSES) governance. PIDG’s involvement will seek to ensure full compliance with international standards including the IFC Environmental and Social Performance Standards, the Principles of the UN Global Compact and the Voluntary Principles on Security and Human Rights.
This investment complements previous investments including a VND 875.1 billion (c. USD 34.5 million) guarantee through PIDG’s guarantees solution, GuarantCo, for Viet Nam’s first 20-year project and green bond issued by Hoa Binh-Xuan Mai in 2024. The guarantee was accompanied by a USD 119,000 technical assistance grant to partially finance the transaction costs. The bond has been oversubscribed by major local institutional investors, the proceeds of which are also funding the project.
Hung Manh Pham, Chairman and CEO of Hoa Binh – Xuan Mai, said:
“PIDG’s latest equity investment in AquaOne has allowed us to achieve financial close for the Xuan Mai Water Supply Project. Together with the funds raised from our bond issuance, we are on a fast track to delivering treated water to customers by early 2026.”
The project represents a key step in responding to the Viet Nam government’s efforts to transition away from groundwater sources, which can be environmentally harmful. Over extraction of groundwater can lead to environmental issues such as ground sinking and increased water toxicity due to naturally-occurring arsenic being drawn into the water supply.
By using river water as feedstock, Hoa Binh-Xuan Mai will reduce the environmental impact from their water treatment plant and can ensure a higher quality of water provided to consumers – including ethnic minorities and low-income households – in Phu Tho province. The project contributes directly to SDG 6.1: By 2030, achieve universal and equitable access to safe and affordable drinking water for all.
Hoa Binh-Xuan Mai is the first of two components of the Xuan Mai water treatment and supply system project plant currently under development by AquaOne. The other component Xuan Mai-Ha Noi, which will distribute water to Hanoi City, has also received funding from PIDG through a guarantee and equity commitment. The VND 317.2 billion (c. USD 12.5 million) guarantee brings GuarantCo’s total guarantee exposure to the projects to VND 1.2 trillion (c. USD 47 million). Upon receiving required approvals, the equity component will conclude the financial close of Xuan Mai-Ha Noi.
