SINGAPORE (Sept 21): Darco Water Technologies and InfraCo Asia Development will be partnering each other for a design, build, own, operate (DBOO) model for four municipal water treatment projects in Vietnam for $50 mil.
Darco and InfraCo Asia will sign a Memorandum of Understanding (MOU) for this partnership at IE Singapore’s Asia-Singapore Infrastructure Roundtable on Sept 26. The partnership was facilitated by International Enterprise (IE) Singapore.
The four 50-year concession projects are worth a total of about $50 million and are targeted to provide up to 62,000 cubic metres of water to benefit around 500,000 residents in Vietnam.
This will be Darco’s first DBOO model in Vietnam.
The first project is scheduled to start in 4Q17 in Ben Tre, Vietnam. The facility will provide industries and around 15,000 household with 15,000 cubic metres of water a day.
The other three projects are slated to start in 2018.
Thye Kim Meng, CEO of Darco says, “With the EPC scene getting more competitive, it is important for us to move ahead in the value chain to extend our foothold in the water purification sector. By building up on DBOO projects, the strong recurring revenue will allow Darco to grow more significantly.”
As at 3.07pm, shares in Darco are trading 2 cents higher at 52 cents.