ADB signs first financing to wind farms in Vietnam
THE Asian Development Bank (ADB) has signed a $116 million green loan for three wind farms in the central Vietnamese province of Quang Tri, aiming to increase the Southeast Asian country’s wind power capacity by 30 per cent.
The bank said it was their first financing of a wind power project in Vietnam, adding to the three farms in Lien Lap, Phong Huy and Phong Nguyen, owned by Power Construction JSC No 1 (PCC1) and RENOVA Inc. They will each have 48MW in capacity.
With a total of144 MW, they will help the country meet the rapidly growing demand for energy, according to the bank.
The loan forms part of a $173 million green loan project financing package arranged and syndicated by ADB as mandated lead arranger and book runner and is certified by the Climate Bonds Initiative, which administers the international Climate Bond Standard and Certification Scheme.
ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B Surtani said: “Lien Lap, Phong Huy, and Phong Nguyen will add to ADB’s extensive experience in large-scale renewable energy projects in Vietnam, and underlines our commitment to helping the country map a clean energy future.
“This is a milestone project which demonstrates how private financing can be effectively mobilised to develop wind power projects in Asia and the Pacific,” he said.
PCC1 chairman and director-general Trinh Van Tuan added: “This transaction is our first wind power project and the first time that we engaged with a group of international finance institutions and commercial banks.
“ADB’s leadership in deal structuring, due diligence, and loan syndications is very crucial for the success of this transaction.”
RENOVA founding CEO Yosuke Kiminami said: “We are delighted to partner with PCC1 on our first overseas renewable project and to work with ADB to support the renewable power sector in Vietnam.”
The project will generate an average of 422,000MWh of electricity and avoid an average of 162,430 tonnes of CO2 emissions annually. A gender action plan under the project will provide women from the local community with access to training on wind power operations and management.
With nearly 60 years of experience in local power infrastructure sector, PCC1 specialises in constructing power transmission networks and substations while RENOVA is a Japanese renewable energy developer and operator of renewable energy power generation facilities including solar, wind, biomass and geothermal power plants.
Earlier, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and the French Development Agency (AFD) signed a SUNREF green credit line agreement to support businesses to invest in the security sector, environment, response to climate change and green growth.
AFD will provide BIDV with a long-term loan of $100 million and technical support of €300,000 ($365,000) for BIDV and its customers.