Thac Mo Hydrpower Company

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On March 29, 2007 the state-owned Electricity of Vietnam (EVN) sold 14 million shares (20% of the equity) of Thac Mo Hydropower Company to more than 1,200 investors for US$59 million at Hanoi and Ho Chi Minh City Securities Trading Centers. The average price of a share was $4.2 (VND 67,929), more than three times the $1.24 (VND 20,000) initial price set for bidding. At that time, Thac Mo Hydropower Company was an independent power producer which operated a 150 MW hydro power plant and had another 75MW hydro power plant under development on the Be River in the Dong Nai river system in Binh Phuoc province. The second power plant, whose cost was estimated at $49.4 million (VND813 billion), was scheduled to be commissioned by the end of 2008. The Japan Bank for International Cooperation provided 85% of the funding for that expansion. The total electricity production of Thac Mo Hydropower Company was sold to EVN and transmitted to the national power grid. Before the sale of shares, the company was a wholly owned subsidiary of EVN. The partial divestiture of Thac Mo Hydropower Company was part of a new government regulation that required selling at least 20% stakes in electricity generation firms to minority shareholders.