Joint venture with LICOGI to build ethanol plant

Canada’s GPI and Spain’s Tomsa Destil have agreed to set up a joint venture with the Vietnamese Infrastructure Development and Construction Corp., known as LICOGI, to build a bio-alcohol plant with a capacity of 400 million liters a year in Binh Phuoc province. LICOGI operates under the Ministry of Construction and is a unit that specializes in the construction, infrastructure projects, etc. Licogi will contribute to the plant’s capital in land-use rights and will be responsible for building the plant. The Vietnamese government will provide 30% in funding from the state budget to encourage such projects. According to Vietnam’s biofuel development plan, the country plans to produce 1.8 million tons of ethanol and biodiesel by 2025 to meet 5% of the country’s total petroleum requirements. (August 12, 2009)