Why a wind power project wants to transfer shares to a Hong Kong partner

Khe Sanh Wind Power Joint Stock Company has just sent a document requesting the People's Committee of Quang Tri province to report to the Ministry of Public Security and the Ministry of National Defense about the ongoing negotiations and plans to transfer a portion of its shares to a Hong Kong investor.

The company representative said: This transfer of shares is to cooperate in management and operation to optimize the efficiency and longevity of the project.

wind power.jpg — Khe Sanh wind power project will generate electricity from October 2021.

Previously, on September 26, 2023, Khe Sanh Wind Power Joint Stock Company sent a request to the Provincial People's Committee and relevant departments to confirm that "Khe Sanh Wind Power Joint Stock Company is the Owner of Amaccao Quang Tri 1 Wind Power Plant Project, ensuring investment conditions in the form of capital contribution, share purchase, and capital contribution purchase of foreign investors as planned according to current laws".

According to this investor, wind power projects are a type of energy with many very new technologies in Vietnam. Currently, Vietnam does not have experienced operating companies nor does it have the equipment and tools to repair, maintain, replace or handle problems when they occur.

Meanwhile, the Quang Tri area has a harsh climate with large storms of level 10 and 12. In addition, the high humidity makes electrical equipment, circuit boards, turbine materials such as blades, hubs, and other materials... very susceptible to failure, requiring maintenance, replacement, and repair after the first 2-3 years.

According to the leader of Khe Sanh Company, in some countries with long-standing wind power projects, in harsh climates, project investors after generating electricity often tend to cooperate with companies specializing in financial investment and operation of large wind turbines so that they have experience, means, tools, especially professional engineers and workers to operate, maintain, and repair to optimize the efficiency of the project.

Therefore, Khe Sanh Wind Power Company affirmed that the goal of transferring a portion of shares is to take advantage of the experience and strengths of foreign partners, thereby supporting in repair, maintenance, and optimization in operation to increase electricity output, which means increasing revenue for the company and increasing contributions to the state budget.

Khe Sanh Wind Power Joint Stock Company said: Foreign partners when selected for cooperation will only be indirect owners through a legal entity established and operating under Vietnamese law and investors will only participate in monitoring the operations of Khe Sanh Company remotely (the office of the above investors is located in Hong Kong and the monitoring activities are mainly to monitor the business performance of Khe Sanh Company), and will only send 1-2 experts to handle incidents related to the operation of the Plant.

"Regular operations are still carried out by Vietnamese people. In case the transfer of shares is carried out, the partners receiving the transfer of a part of the shares of Khe Sanh Company together with individual shareholders who are Vietnamese citizens and residing in Vietnam (these individual shareholders are not related to foreign countries, not overseas Vietnamese) commit to signing a power of attorney contract assigning a company - a member of AMACCAO Group to be 100% responsible for the operations. This power of attorney contract is signed for a term of 10 years each time," the company said.

This investor said: The cooperation in Khe Sanh wind power project is both to optimize the project's efficiency and to help the company have financial resources to develop other projects.

Although the land has not been allocated, Tan Tan Nhat Joint Stock Company has implemented the construction of a wind power plant worth 1,890 billion VND on an area of over 24.5 hectares in Kon Tum province. The company was fined by the government and forced to pay more than 800 million VND to remedy the consequences.

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