The plant will process 150,000 cubic metres of river water per day, supplying improved access to treated water in rural and suburban parts of Phu Tho province including Hoa Binh ward and Luong Son commune and supplementing water supply for the west, southwest, and water-scarce areas, encompassing urban, industrial, and rural areas of Hanoi.

PIDG invested equity, technical assistance and provided bond guarantees through its solutions GuarantCo and InfraCo between 2024 and 2025. The plant is part of a two-component scheme with component 1 being the Hoa Binh-Xuan Mai water treatment plant, supplying raw and treated water to Phu Tho province, and component 2: Xuan Mai Hanoi being the construction of a clean water pipeline to Hanoi.

In total, PIDG has committed approximately VND333.61 billion (approximately $13 million) in equity, approximately $50 million in bond guarantees and $119,000 in technical assistance grants.

Nishant Kumar, head of coverage (Asia) and managing director of Asia Investments for GuarantCo at PIDG said, “Our partnership with AquaOne for the Xuan Mai initiative is special to PIDG as it speaks directly to our impact goals across impact on people, planet, wider economy and market transformation."

"PIDG provided a comprehensive, end-to-end funding solution, comprising equity, bond guarantee and technical assistance facility. This remains the longest tenor project bond issued in Vietnam and also the first green bond in Vietnam’s water sector. We believe that the venture has the potential to inspire many more transactions in Northern Vietnam.”

The project also received construction and operational support from PIDG’s Asset Management and Impact teams with a focus on international standards in compliance, as well as health, safety, environmental, and social (HSES) governance.

Pham Manh Hung, general director of Hoa Binh – Xuan Mai Clean Water Co., Ltd, said, “The inauguration of the Hoa Binh - Xuan Mai Water Treatment Plant is not only a significant milestone for us but also a testament to our relentless efforts in creating sustainable values. In this venture, our company is committed to strictly adhering to the highest international standards in management and operation. We place particular emphasis on the professional and methodical implementation of Health, Safety, Environment, and Social standards."

"Once operational, the project will directly supplement the water supply in Phu Tho province and Hanoi city. This will not only improve the quality of life for millions of residents through safe and clean water but also contribute significantly to the completion of technical infrastructure, thereby creating a solid foundation to drive regional economic growth and attract further investment.”

Connor Dawson, head of Asset Management for InfraCo at PIDG, said, “We are delighted to achieve this milestone with AquaOne ahead of schedule and in full compliance with local and international standards and regulations. Developing greenfield assets can be challenging as there are limited sources of reference, and many new or adapted standards that require adherence to. We are pleased that AquaOne’s experience in the water sector, coupled with PIDG’s detailed, safety-first approach to engineering, procurement, construction and financial oversight, has resulted in this successful collaboration.”