Climate Fund Managers (CFM), a leading climate-centric blended finance fund manager announces a USD 27 million investment in Vietnamese water infrastructure developer and operator CA Water Joint Stock Company (CA Water) via its Climate Investor Two (CI2) fund. The investment will accelerate the supply of clean water in Northern Vietnam with two new water treatment plants and associated distribution networks, improving health and quality of life for thousands while fostering long-term social, environmental and economic development in the region.
CI2 is a blended finance facility focused on water, sanitation and oceans infrastructure in emerging markets, supported by the European Union and the Government of the Netherlands. The investment will support the development, construction and operation of two greenfield water treatment and distribution plants in Northern Vietnam: (1) the Phu Binh water treatment plant, with a capacity of 15 million liters per day (MLD) in Phu Binh District, Thai Nguyen province, and (2) the Thuy Nguyen water treatment plant, with a capacity of 10 MLD in Thuy Nguyen District, Hai Phong province. CI2’s Construction Equity Fund has committed USD 27 million for the construction of the projects.
The plants, operating under a concession with local governments, will provide clean drinking water directly to households, industrial and commercial users in the region, benefiting approximately 150,000 people who currently rely on unsafe and untreated groundwater such as wells, and rainwater as their primary water sources. The two projects will create 200 jobs during the construction phase and close to 70 permanent jobs during operation. The operation of the water treatment plants will contribute to a strong foundation for social and economic development in the project areas.
CFM’s investment was announced at a groundbreaking ceremony of the Phu Binh Project on 16 May 2024 in Thai Nguyen province, Vietnam to celebrate the commencement of construction of the plant.
Ambassador Kees van Baar, Ambassador of the Kingdom of the Netherlands to Vietnam, who attended the event said: “I am proud that the Government of the Netherlands can contribute to this project via Climate Fund Managers. It is a concrete commitment of the Netherlands to work together with Vietnam to develop a sustainable and inclusive economy.”
Ambassador Ngo Huong Nam, Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam to the Netherlands, expressed in a congratulatory letter: “We have observed the relentless efforts of numerous organizations and individuals in tackling the clean water issue. The investments made by investors like CFM as well as CA Water Company, exemplify the spirit of collaboration and social responsibility in addressing this challenge.”
Julien Guerrier, the EU Ambassador to Vietnam said: “Access to clean and safe drinking water is a basic human right, yet the money for the necessary infrastructure is often not easily available. I am proud that Team Europe plays a catalytic role in mobilising urgently needed additional investments for such infrastructure through our partnership with Climate Fund Managers. The development of the Phu Binh and Thuy Nguyen water treatment projects marks a significant milestone in our shared commitment to enhancing water access and sustainability throughout the region.”
Nathan Schmidt, Head of Asia at CFM said: “Blended finance has a vital role to play in funding critical infrastructure projects in emerging markets, leveraging public capital to overcome financial and risk barriers and mobilise private sector capital at scale. In CA Water, we are delighted to have found a partner with a proven track record of developing and operating water infrastructure projects in Vietnam. We look forward to working together to accelerate the provision of safe water to underserved communities across the region.”
Mr Dinh Minh Dao, Chairman of CA Water said: “CFM’s extensive experience in structuring, developing, and financing infrastructure solutions across emerging markets aligns perfectly with our vision for expanding our platform across Vietnam. We are excited to partner with the team to leverage their technical, ESG, and financial expertise as we commence the development of the Phu Binh and Thuy Nguyen water treatment projects. Their investment marks a significant milestone in our commitment to enhancing sustainable water infrastructure and access throughout Vietnam.”
As part of the Community Development Programme, Phu Binh Water Supply Company Limited, the owner of Phu Binh project, has funded the installation of toilets in two primary schools and two secondary schools in the Phu Binh service area. The facilities will improve sanitation and health outcomes for more than 1,500 students.
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