GEC (IFC-37567)

Countries
  • Vietnam
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 12, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
GIA LAI ELECTRICITY JOINT STOCK COMPANY
The holder of the loan, grant, or other investment.
Sectors
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 9.98 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 13, 2018

Disclosed by Bank Feb 5, 2016


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Project Description

Gia Lai Electricity JSC (“GEC” or “the Company”), founded in 1989, is one of the Vietnam’s largest private-sector independent small hydroelectric power producers. GEC owns and operates 15 existing hydro power projects (“HPPs”) totaling 84MW in installed capacity. The majority of GEC’s portfolio is small hydro power projects, ranging from 0.3MW to 16MW. It has around 278 staff.

GEC’s business model mainly consists of the development and acquisition of small HPPs, wind and solar projects. While GEC’s ownership varies from project to project, it usually assumes an active leading role in design, construction, and operation depending on the project stage.

The International Finance Corporation (IFC) – the private sector investment arm of the World Bank Group – is considering an equity investment in GEC to support renewable energy development in Vietnam.

Investment Description
  • International Finance Corporation (IFC)

GEC is 87 % controlled by Thanh Thanh Cong Group (“TTC” or “the Sponsor”), a Vietnamese conglomerate founded by Mr. Dang Van Thanh in 1979, through various intermediate companies. The remaining 13% are held by around 310 individual shareholders.

TTC is Vietnam’s largest private sugar manufacturer. TTC also has 79 MW of biomass power plant portfolio owned by its various sugar business units (and to which GEC provides technical assistance and O&M services). Mr. Thanh was also the founder and Chairman for 20 years of Sacombank, one of the largest commercial banks in Vietnam and an IFC investee bank between 2002 and 2008. Mr. Thanh currently does not hold any shares in Sacombank.

Private Actors

Thuong Lo Hydropower Plant – Thua Thien Hue

In 2008: Truong Phu Joint Stock Company planned to build Thuong Lo hydropower plant in Thuong Lo commune with 7.5 MW capacity and 29.41 million Kwh. 

In 2013: GEC became shareholder with Truong Phu company and together, founded Thuong Lo Hydropower Joint Stock Company in Hue. GEC contributed 20 billion VND (787,000 USD) as 50% share in Thuong Lo Company. Up to now, GEC has 87.42% share, approximately 40 billion Vietnam Dong (1.8 million USD). The Thuong Lo Hydropower plant after that was constructed under the name of Thuong Lo Company. 

Da Khai Hydropower Plant – Lam Dong province

June 28th, 2013: GEC purchased the Da Khai Hydropower Company, which is located in Da Chay commune, Lac Duong district, Lam Dong province (30km North from Da Lat city) from Cienco 4 (Civil Engineering Construction Corporation No. 4 Ltd).

H’mun Hydropower Plant – Gia Lai Province

In February 2008, GEC started to build the H’Mun Hydropower Company with 16.2 MW capacity. The dam is located in Bar Maih commune, Chu Se district, Gia Lai province. The dam is built on the Ayun River. The investment includes: PC3, GEC, TIC – Tay Nguyen electricity investment joint stock company, and EDC with 30% from TIC.

Ayun Thuong 1A HPP – Gia Lai Province

The Ayun Thuong 1A hydropower plant is built on the Ayun river (a tribute of Ba River) , invested by Ayun Thuong Hydropower Plant Joint Stock Company with GEC and other 2 companies and GEC has 90% of share. The dam construction started in February 2009 and finished by 2011. The construction company is Song Da 4 Corp.

The hydropower plant was operated on August 30th, 2011. The dam is located in Lo Pang and H’Noi communes, Gia Lai province. The project cost 290 billion VND (12.8 million USD) with Dak Lo Hydropower Company, GEC, and Tay Nguyen electricity investment joint stock company (the share is unclear).

Contact Information

Mr. Le An Khang
CEO, Gialai Electricity JSC
Address: 114 Truong Chinh, Pleiku, Gia Lai Province, Vietnam
Telephone: +84593823604
Email: : mailto:khangla@geccom.vn

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/