SINGAPORE: Asiatic Group is investing US$6.3 million for a 51 per cent stake in a joint venture in Vietnam.

It will launch its single largest power supply project in Vietnam, together with its partners Bao Long Construction, Trading Joint Stock Company and Bao Linh Joint Stock Company.

The joint venture firm will design, build, own and operate a 44 megawatt hydroelectric plant at a cost of US$62 million.

Construction of the first phase of the project is set to start in the second quarter of 2011. The second phase is due to come on stream in the fourth quarter of 2012.

Asiastic Group said the deal will expand its market in the region, as demand for renewable energy continues to rise.

The company has been expanding its power generation business over recent years, making inroads into Cambodia and now Vietnam. - CNA/vm