NEXIF Energy, a South East Asian independent power producer, has entered into an agreement to subscribe additional equity in Viet Hydro Pte Ltd. The proceeds will be used by Viet Hydro to further consolidate its holdings in the Coc San hydro-electric project in northern Vietnam.

“Nexif Energy is pleased to increase its commitment to the Coc San project, which recently completed construction and commenced operation,” said Nexif Energy founder and co-chief executive officer Surender Singh. “We also look forward to making more investments in Vietnam’s power sector.”

Coc San is a run-of-the-river 30MW hydro power project in the Dum River Valley, a tributary of the Hong (Red) River. It is approximately 300km northwest of Hanoi in Lao Cai province.

“The Coc San project is regarded as a model hydro project for environmental and social compliance by multilateral organisations, local government and communities, and Viet Hydro is thankful for the cooperation extended by the government, employees and contractors that resulted in the successful implementation of the project,” said Viet Hydro chairman Srinivas Rao, who is also Nexif Energy’s executive vice president, projects and operation.

Nexif Energy will subscribe to additional shares in Viet Hydro and Viet Hydro will use the proceeds to acquire the remaining holdings in the project of Colben Energy Holdings (Vietnam) Limited, and HVD Construction and Investment Consultant JSC, which will increase Viet Hydro’s shareholding in the project to 92%. InfraCo Asia Development Pte Ltd will retain its minority interest in Viet Hydro.

“Vietnam is a key target market for Nexif Energy. Further investment into Coc San is a testament of our commitment to the country. We aim to become a leading independent power generation company in Vietnam and are currently evaluating a number of additional promising investment opportunities there,” added Nexif Energy’s executive vice president of business development Enamul Latifi.

Nexif Energy, which was formed in August 2015 by Nexif, a Singapore-based independent power management company, and Denham Capital, a global energy-focused private equity firm, is also completing the acquisition of OneWind’s late stage development wind projects, the 212MW Lincoln Gap project in South Australia and the 90MW Glen Innes project in New South Wales. It has acquired OneWind’s 32% share in RPVD Development, which owns the Walkaway II wind and solar projects in Western Australia.