PHI Group, (www.phiglobal.com; OTCQB: PHIL), a company focused on mergers and acquisitions and investments in natural resources, energy, agriculture and special situations, announced today that Yen Bai People’s Provincial Committee has approved the policy to permit a joint venture between PHI Group and Hung Vuong Export Import and Construction JSC (“HVJSC”), a Vietnamese company, to conduct additional study, survey, and planning towards the establishment of a 100-MW renewable energy power plant over a 100-hectare land area in Yen Binh District, Yen Bai Province, Northern Vietnam.
Along with the initial approval signed by Mr. Do Duc Duy, Chairman of Yen Bai Province, the Provincial Committee has also given instructions to the Departments of Planning and Investment, Industry and Commerce, Natural Resources and Environment, Agriculture and Rural Development, Construction, Transportation and the Yen Binh District People’s Committee to provide guidance and support for HVJSC and PHI Group to develop and implement the 100-MW renewable energy power plant in accordance with the framework of the Vietnamese legal requirements.
Total estimated investments for the project are approximately $297 million, for which the Company has received interest for financing from several investor groups. At current electricity price levels, which are expected to rise over time, projected average annual revenues and EBITDA during the first 9 years of operation are $101 million and $79.4 million, respectively. The Company plans to use an innovative kinetic power system developed in Germany as the preferred technology and has also considered other alternative renewable energy technologies if needed.
Ha Hoang Vuong, Chairman of HVJSC, stated, “We are delighted to receive the policy approval from the Yen Bai People’s Provincial Committee and look forward to working with PHI Group to develop and build this clean energy power plant in Yen Binh District, which we believe will greatly benefit the people and the environment of Yen Bai Province as well as shareholders of our both companies.”
Henry Fahman, Chairman and CEO of PHI Group, said, “We greatly appreciate the prompt decision and the earnest support of Yen Bai People’s Provincial Committee and will continue to work diligently with Hung Vuong as well as our technical and financial partners to carry out this plan as soon as possible.”
About PHI Group
Founded in 1982, PHI Group primarily focuses on mergers and acquisitions and investments in natural resources, energy, agriculture and special situations that may substantially enhance long-term shareholder value. PHI Group will hold 75% equity interest in the joint venture company with HVJSC for the clean energy power plant in Yen Bai Province, Vietnam.
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995.