The US$300Mn limited partnership will be one of the first investment funds to take advantage of the rapidly growing demand for electricity in Vietnam, Cambodia, and Laos. This fund provides investors with the unique opportunity to capitalize on the surging demand, market deregulation, and upward trending electricity tariffs in the energy sector of the economically exciting Indochina region.

The fund is to be managed by Kevin Flaherty, Managing Director of Energy and Natural Resources Investments at SAM, who has over 15 years of experience in Indochina’s resource and energy sectors. The investment manager, SAM, will be conducting investor presentations starting in Q4 2011.

Status: Currently Raising Capital.

Please contact Investor Relations at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it to schedule an investor presentation or if you have any further questions about this new fund.

To address a persistent electricity shortage in Vietnam, the government has passed Power Development Master Plan Number 7 in 2011. In order to keep pace with increased demand, the government has decided that 5,000 MWs need to be added annually to the power system to reach the stated goal of 75,000 MW by 2020. To achieve this goal, increased investment is needed to finance the new projects being planned, and to increase interest in potential investment, the government is in the process of deregulating electricity prices, thereby removing the distinction of having the lowest prices in the region.

Currently, Vietnam’s electricity system is overwhelmed by the new demand spawned by the country’s continued strong growth. This has resulted in frequent power outages throughout the country, hindering industrial output, the attractiveness of the country to foreign investment, and ultimately, the overall economy.

Most of the newly planned capacity will be from thermal and hydroelectric plants, though nuclear and renewable energy plans are being developed as well. Until now, the government has only been able to add an average of 3,000 MW per year, thus to add of 5,000 MW per year significant outside investment is required and encouraged. SAM sees enormous investment potential in this nascent and recently deregulated sector.

Cambodia’s energy development has not kept up with its strong growth resulting in electricity prices being the highest in the region. Most of the energy assets are IPPs (Independent Power Producers) or owned by large multinational corporations. The Cambodian government is hoping that new investment in their energy sector will satisfy some of the demand, thereby reducing prices and strengthening the pace of economic development.

To satisfy the shortage, Cambodia is currently a net importer of electricity from Thailand, Laos, and Vietnam. A boost in domestic production capacity would help bring down electricity prices and ease the burden on the growing middle class.

Laos is the most well endowed country in terms of energy assets. With numerous rivers running through it, the country has enormous hydroelectric potential that it is trying to harness in order to turn Laos into a highly profitable net electricity exporter. The recent listing of Electricité du Laos (EDL) on the new Lao Stock Exchange has helped increase the transparency in the Lao energy sector, thereby increasing the attractiveness of any potential investment.

The Laos government has publicly stated that it strives to become the “Battery of ASEAN.” To achieve this, government support of hydro power investment has increased, and with power supply agreements with its neighbors, Lao has the potential to become a major energy player in the region.