innovative financial models—especially green finance—are becoming increasingly critical to unlocking large-scale infrastructure development.
The Hoa Binh – Xuan Mai Water Treatment Plant stands out not only as a major water infrastructure project, but also as a pioneering example of how international capital, guarantees, and green bonds can come together to support sustainable development. Beyond its physical output, the project signals a growing confidence of global investors in Viet Nam’s infrastructure sector and its long-term growth potential.
Speaking at the inauguration ceremony on April 30, 2026, Mr. Nishant Kumar – Managing Director, Head of Asia at GuarantCo, and Head of Asia at the Private Infrastructure Development Group (PIDG), shared a global perspective on the project, emphasizing its significance in advancing green finance and strengthening market confidence in Viet Nam.
Full Speech
“On behalf of the Private Infrastructure Development Group, I would like to share our hearty congratulations with the AquaOne team on the inauguration of the Hoa Binh – Xuan Mai water treatment plant.
We joined this journey with AquaOne in December 2024 when PIDG’s project development solution – InfraCo – and PIDG’s guarantee solution – GuarantCo – formed an agreement to invest in the Xuan Mai project through equity and a bond guarantee. Over a period of 11 months, PIDG invested through a bond guarantee, technical assistance and equity to bring the project to a financial close and commence construction.
In the following one-and-a-half years, PIDG’s Health, Safety, Environmental and Social team have been working closely with the AquaOne team to embed best practices in construction and operations, and it is with great joy that we commemorate the facility today.
Our partnership with AquaOne for the Xuan Mai project is very special to PIDG as it speaks directly to our impact goals across impact on people, planet, wider economy and market transformation.
PIDG’s investment in this project has shown a tremendous potential for capital mobilisation. The bond issued by Hoa Binh – Xuan Mai was Viet Nam’s first green bond in the water sector, with the longest tenor green bond issued till date with a period of 20 years. Through this bond, the project was able to unlock financing from international investors without having to rely on a bank loan.
The green bond received oversubscription from major institutional investors including Chubb Life Vietnam, Hanwha Life, AIA, and Generali. This level of market participation has never been seen before in Northern Viet Nam’s water sector, and raises immense confidence for transactions to follow.
Once operations commence, the Hoa Binh – Xuan Mai water treatment plant will treat 150,000 m³/day of water and provide improved water access to over 53,000 people including ethnic and low-income households in rural and sub-urban parts of the Phu Tho province.
In recent years, over extraction of groundwater has led to environmental issues such as ground sinking and increased water toxicity due to naturally-occurring arsenic being drawn into the water supply. Hanoi’s groundwater levels alone are declining by 0.3–0.5 m annually. Through this project, we mitigate the environmental and health impact of groundwater extraction by sourcing water from the Da River, and displacing an estimated 20 per cent of groundwater currently serving the city’s needs.
The plant will also supply 2.5 per cent of its water output for industrial uses in Ha Noi, supporting various industries in Viet Nam including food and beverage, textile and garments, and electronics and manufacturing – industries identified as critical for bolstering Viet Nam’s economic growth.
This transaction reminds me of our equity investment in a 162 MW utility-scale plant in the Ninh Thuan province – one of the first utility scale plants in Viet Nam in 2018. Since then, we have continued investing in solar energy through guarantees and debt, gradually supporting market confidence and belief in the commercial viability of solar energy projects, and improving access to electricity for all.
Similar to Ninh Thuan, I believe that we stand at yet another cusp in Viet Nam’s journey to self-sustenance and sustainable development at this moment. This time, it is not in energy, but water, where we work together to redefine market confidence in Viet Nam’s industries.
With its success, the Hoa Binh – Xuan Mai project has the potential to demonstrate the commercial viability of developing large-scale, greenfield water projects in Northern Viet Nam, and we hope that this first project is a precursor to continued market participation in the years to come, just like how the Ninh Thuan power plant set the scene for a booming solar industry in the country.
It is, thus, with great joy that we celebrate this success with AquaOne on this important milestone. Congratulations to the AquaOne Executive Management and team on your success. It has been fulfilling to work with such determined and focused partners, and we wish you continued success as the plant begins operations and continues to grow!”.
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