The Binh An Water Supply project was conceived by Sadec Malaysian Consortium in early 1994. Based on the preliminary discussions in the matter, the Company entered into a Memorandum of Understanding with the HoChiMinh Water Supply Company during the official visit of the Malaysian Prime Minister to Vietnam in May 1994.
Pursuant to the Memorandum, the Company carried out detailed feasibility study of the concept, and presented the same for evaluation of the representatives of the HoChiMinh government.
The project received blessings of the local government and the central government in late 1995, leading to detailed project negotiations. The concept of Build-Own-Operate and Transfer for project implementation was agreed upon, leading to detailed pricing and project component definition and documentation.
The investment licence was granted in March 1996 to the special purpose implementing entity, namely Binh An Water Supply Company Limited. The Government consequently undertook land acquisition for the project.
Construction activities were completed in July 1999. The production of treated water at 100,000 cubic meters per day commenced in August 1999.
BOT methodology under a communist economic regime proved to be difficult to structure, but with the co-operative spirit and will of the local and central governments, the project did receive the requisite momentum for fruition. The BOT structure takes the typical international format but the BOT and project documentation is probably quite unique to Vietnam. International Finance Corporation was initially involved in structuring the project finance. The shareholders have since completed the project using internal funds.