USAID, Sao Mai Group Join Hands for Solar Energy Development in Vietnam

The United States Agency for International Development (USAID) and Sao Mai Group signed a memorandum of understanding on development support for the Vietnam Low Emission Energy Programme (V-LEEP). Accordingly, the former will support the latter to develop a 210-MW solar project in Tinh Bien district, An Giang province, Vietnam.

Specifically, USAID’s V-LEEP will assist Sao Mai Group in initial investment assessment (IRA), equipment procurement, selection of engineering, procurement and construction (EPC) unit, selection of financial options and financial structure for the project. The programme will also assist Sao Mai Group to build up the project development capacity by applying best global practice standards.

USAID and V-LEEP Project Unit will base on the contract progress to guide Sao Mai Group to establish initial investment assessment, procure equipment, review and assess EPC document, and utilise favourable technical and financial advantages of the project. V-LEEP will also assist Sao Mai Group to build up the project management capacity according to best global practice standards.

V-LEEP is funded by USAID, a five-year technical assistance agency helping the Government of Vietnam manage and operate effectively environmental impacts, mitigate toxic energy gas emissions, and promote private and public sector investment in renewable energy projects. V-LEEP is a partner of private companies supporting development and financial investment of renewable energy projects and national power grid connections throughout Vietnam. The master programme of V-LEEP will closely coordinate with the National Power Master Plan, including designing, infrastructure construction, direct power purchase agreements (DPPA).

Sao Mai Group was founded in 1997. After 20 years of construction and development from a small property business, the group has developed into a multi-business entity with a total registered capital of more than VND7,000 billion, employed about 8,000 workers and owned 19 member companies engaged in real estate, design consultancy, export seafood processing, food production, refined fish oil production, fishmeal production, financial investment, solar energy, hotel - restaurant chain, service and tourism.

In May 2017, Sao Mai Group officially operated 1.06-MW Sao Mai Solar Energy No. 1 in Sao Mai Industrial Park, becoming one of the first companies in Vietnam to have a solar power plant. Following this success, Sao Mai Group is planning to invest in a 210 MW solar power plant in An Giang province at a total cost of US$193.35 million, developed in four phases: Phase 1 (46 MW), Phase 2 (58 MW), Phase 3 (44 MW) and Fourth Phase (62 MW) in 2018, 2019, 2020 and 2021, respectively. The project prefeasibility study was consulted by consulting firm ILF - Thailand Branch and licensed by local authorities.

The project was also included to the Master Plan for National Power Industry Development according to the Prime Minister’s Decision No. 869/TTg-CN dated June 19, 2017. Sao Mai Group is the first power supplier developed from polycrystalline modules undertaken by prestigious EPC contractors.

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