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IFC Agrees to Develop Renewable Energy with SN Power in Vietnam

Washington, D.C., July 6, 2010 —IFC, a member of the World Bank Group, and SN Power, a Norwegian industrial investor in the power sector, have entered into a joint development agreement to provide sustainable alternatives for meeting the growing demand for electricity in Vietnam through renewable energy generation.
This joint development agreement will enable IFC, acting through IFC InfraVentures, an early stage project development fund, and SN Power to develop an investment strategy, policy, and guidelines to address Vietnam’s growing demand for power. The partners will acquire operating assets and invest in greenfield projects to build up a portfolio of renewable energy investments in the country. The project will be IFC’s first investment in Vietnam through IFC InfraVentures.
Vietnam’s economy has grown rapidly since the start of the country’s liberalization policies; however, the electricity supply has not been able to meet the growing demand. Vietnam now faces recurrent blackouts, which pose a threat to future growth and make the need for more reliable power urgent.
Erik Knive, SN Power’s Executive Vice President for Southeast Asia, said, “This partnership with IFC will allow SN Power to achieve synergy by finding viable hydropower projects that we can develop and operate sustainably. We believe we can strengthen Vietnam’s long-term renewable generating capacity through our power market experience and technology transfer.“
Anita George, IFC Director for Infrastructure, said, “We are pleased to work with SN Power, a global sponsor with the financial capability, technical expertise, and commitment to develop power projects in Vietnam. We hope that this joint development agreement will pave the way for a strong portfolio of renewable energy projects and help meet the country’s growing demand for power.”
SN Power and IFC have collaborated previously on several of SN Power’s global investments in wind and hydropower plants in Chile, India, and the Philippines.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org .
About SN Power
SN Power, or Statkraft Norfund Power Invest AS, established in 2002, is a Norwegian Limited Company owned by Statkraft, a state-owned utility that is northern Europe’s largest generator of hydropower, and Norfund a leading Norwegian risk capital investor in emerging markets, funded by the Norwegian government. SN Power aims to become a leading hydropower company in emerging markets, contributing to economic growth and sustainable development. For more information, visit www.snpower.com .