Hanoi (VNA) - Four foreign investorsfrom India, Thailand, the Republic of Korea andthe Middle East registered to buy 36 percent of the chartercapital at the Power Generation Corporation 3 (GENCO 3) to become its strategicinvestors.

Dinh Quang Tri, deputy general director of the Electricity of Vietnam (EVN)announced the development at the roadshow to introduce investment opportunitiesin GENCO 3 held in Hanoi on January 25. “All of the foreign investors arebig firms,” Tri said.

For example, the Indian investor has electricity capacity of more than 10,000MW and has invested in coal mines in Indonesia and Australia.

TheThai investor has experience in developing gas turbines and big cash flow,while the investor from the Middle East specialises in buying powerplants around the world as well as providing gas resources with morecompetitive prices.

“The four investors all have great potential. The competition to choose thestrategic investor on March 15 will be as attractive as the final match ofU23 Vietnam and U23 Uzbekistan,” he added.

Tri said following the equitisation plan approved by the Government, 36percent of GENCO 3’s charter capital, or 749.1 million shares, would be sold tostrategic investors. GENCO 3’s charter capital is 20.8 trillion VND, 51percent of which will be owned by EVN. The corporation has a value of around 52trillion VND (2.3 billion USD).

EVN would divest its capital at GENCO 3 to less than controlling level after2019 if EVN and the corporation were successful in restructuring its debts andnegotiating with lenders.

“The share selling would help GENCO 3 gain capital for investment in new powerprojects as well as paying loans from foreign countries which have been guaranteedby the Government,” he added.

Dinh Quoc Lam, GENCO 3’s general director, said it would put more than 267million shares, accounting for 12.8 percent of its charter capital, up for salein its initial public offering (IPO) in February 2018. Some 0.16 percentor 3.4 million shares would be sold to labourers. 

Lamsaid the shares will be listed on the HCM Stock Exchange (HoSE) with theinitial auction price of 24,600 VND (1.08 USD) per share.

GENCO3 is one of the three power generation corporations under EVN’s management. Ithas capacity of 6,304 MW, accounting for 16 percent of the country’s totalelectricity system. Last year, its revenue was estimated at some 34.6trillion VND and profit from power production was 1.27 trillion VND, surpassing19 percent of the set targets.

GENCO 3 planned to start construction of two solar power projects whileimplementing investment procedures of the Long Son Electricity Centre projectusing liquefied natural gas in the southern Ba Ria - Vung Tau province in2018.

The joint venture of VIET Capital Company and EVN Finance will provideconsultancy for GENCO 3 privatisation.

According to Barry Weisblatt, director of VIET Capital, GENCO 3 has key powerresources in Phu My, Vinh Tan 2, Mong Duong 1 and Buon Kuop plants, giving itan advantage when entering into the electricity market.

In addition, it has high quality human resources, including employees who haveworked at firms such as GE, Alstom, MHI and Siemens. They will help GENCO 3quickly adapt to changes in the market, creating a firm foundation in thefuture.

GENCO 3 has been the strongest unit in EVN’s power generationcorporations. It has nine power plants including four gas-fired powerplants, three hydropower plants and two coal-fired power plants with totalcapacity of 5.5 GW.

The corporation also has two subsidiaries of Ba Ria and Ninh Bình Thermo-powercompanies. It also owns 30 percent of shares at Vinh Son – Song Hinh, Thac Bavà Se San 3A Hydropower plants. -VNA