Ecolo Cable Company of Canada has signed a contract with Vietnam to implement 5 small-sized hydropower projects, mainly along the Laos-China border. According to Dr. Luong Tri Vu, Chairman and CEO of this Company, those projects not only help Vietnam partially meet the power demand for the economic development but also financially support Vietnam based on the terms and conditions of the Kyoto Protocol about gas emission reduction.
To satisfy the need of 25,000 - 35,000 MW more in the next 10 – 15 years, Vietnam is encouraging small-sized hydropower projects to supplement for coal-fired and oil-fired power companies or nuclear power companies in the future. As said by Mr. Vu, If Vietnam has small-sized hydropower companies that meet the requirements of Kyoto Protocol, Vietnam can sell CER credits to those that do not.
The above small-sized hydropower projects which have the total investment of 135 million USD is highly economically feasible and is expected to reduce more than 3 tons of gas emission. According to the Kyoto Protocol, this gas emission can be converted to CER credit to exchange in the market. Currently, the price of a CER or one ton of CO2 credit is Euro 20.
Mr. Vu has been working in the environmental sector for 40 years and Ecolo is cooperating with about 20 projects, mainly in China and Vietnam. As said by Mr. Vu: “Ecolo Cable is specialized in projects which are to reduce gas emission and we will participate with different levels depending on each project; for example, directly investing in the construction of the infrastructure of those projects, participating in Clean Development Mechanism (CDM) to obtain the CER credit and exchanging in the market and sharing with investors afterwards.”
According to Mr. Vu, with those 5 projects, Ecolo Cable does not only invest in the infrastructure but all the costs relevant to the registration process with the United Nation and all the technical studies. Due to the complicated registration process with the United Nation which requires a period from 12 to 16 months and business departments to negotiate in the market and re-share with investors, almost all investors cannot do this themselves and need a specialized company who is prestigious to do this instead.
Theo: Mai Phuong