Gelex negotiates divestment of power projects with foreign investors

As announced at the 2023 Annual General Meeting of Shareholders, Gelex Group Corporation (GEX) is restructuring its business segments and actively seizing international cooperation opportunities.

In particular, Gelex has a policy of restructuring the portfolio of power projects in operation in the system through the divestment of maximum or all shares/capital contributions in these power project companies to potential foreign investors. Gelex is in the process of working and negotiating to reach an agreement and complete the transaction with foreign investors.

*Image of wind power tower at Gelex Wind Power Plant Project 1,2,3 in Quang Tri*

Gelex has 5 wind power projects in Huong Hoa district, Quang Tri province with a total investment of more than 6,000 billion VND. The Huong Phung 2 and Huong Phung 3 wind power plant projects (including 12 turbines with a total installed capacity of 50MW) and the Gelex 1, 2, and 3 wind power plant projects have been recognized for commercial operation.

These projects are eligible for preferential electricity prices (8.5 cents/kWh for 20 years, excluding value added tax) - according to Decision No. 39/2018/QD-TTg, dated September 10, 2018 of the Prime Minister on the mechanism to support the development of wind power projects in Vietnam.

GEX's wind power projects are financed by BIDV, VietinBank, and co-financed by Landesbank Baden-Württemberg (LBBW) of the Federal Republic of Germany in the form of export credit (ECA) with the insurance organization Euler Hermes. With this form of credit, projects have access to low-interest capital with long loan terms. Together with previous projects, GEX has a total of 260 MW of electricity in operation with the total power output of the plants estimated at about 700 million kWh/year, expected to increase the total renewable energy capacity owned by 2025 to 800 MW.

GEX is accelerating the restructuring process, realizing sustainable development goals. As of March 31, 2023, GELEX's total assets reached VND 52,619 billion, up 0.4% compared to the beginning of the year. Asset structure and capital sources are stable.

To adapt to the new stage, Gelex has new policies such as promoting cooperation with global corporations to expand markets and products in the value chain of the group's core business areas. Gelex continues to research and invest in potential wind power projects; discuss cooperation opportunities with a number of partners and consider new projects.

Mr. Nguyen Trong Hien was elected Chairman of the Board of Directors of Gelex. After changing the personnel structure, the Board of Directors (BOD) of Gelex Group held its first meeting and unanimously elected Mr. Nguyen Trong Hien to hold the position of Chairman of the Board of Directors (term 2021-2026) from April 26, 2023.

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