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DARCO Water Technologies and InfraCo Asia Development will team up on a design, build, own, operate (DBOO) model for four municipal water treatment projects in Vietnam.
Investments for these 50-year concession projects total around S$50 million.
Their partnership is facilitated through International Enterprise (IE) Singapore, and is aimed at providing up to 62,000 cubic metres of water that will benefit about 500,000 residents across Vietnam.
In a release on Thursday, Darco said this marks a significant move as it adopts a DBOO model in Vietnam for the first time, transforming to an asset ownership model for its overseas growth.
The first project in the Ben Tre province will begin construction in Q4 this year and is expected to provide 15,000 cubic metres of water a day to the industries and some 15,000 households. The other projects will start in 2018.
In 2016, Darco recorded a turnover of S$60 million. It derives its revenue mainly as an engineering, procurement, and construction (EPC) player specialising in industrial water treatment.
As part of growth plans, Darco is now working with IE Singapore to move across the value chain to take on ownership projects. This allows the company to enjoy recurring revenue, improve cash flow and take on bigger projects overseas.