ADB signs first financing to wind farms in Viet Nam

Friday, May 28, 2021 16:24

The project will generate an average of 422 gigawatt-hours of electricity and avoid an average of 162,430 tons of carbon dioxide emissions annually. — Photo courtesy of PCC1

The Asian Development Bank (ADB) has signed a US$116 million green loan for three wind farms in the central province of Quang Tri, aiming to increase Viet Nam’s wind power capacity by 30 per cent.

The bank said it was their first financing of a wind power project in Viet Nam, adding to the three farms in Lien Lap, Phong Huy and Phong Nguyen, owned by Power Construction Joint Stock Company No.1 (PCC1) and RENOVA, Inc. They will have each 48-megawatt (MW) 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 Viet Nam, and underlines our commitment to helping the country map a clean energy future.”

He said: “This is a milestone project which demonstrates how private financing can be effectively mobilised to develop wind power projects in Asia and the Pacific.”

PCC1 chairman and general director 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 Viet Nam.”

The project will generate an average of 422 gigawatt-hours of electricity and avoid an average of 162,430 tons 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 US$100 million and technical support of EUR 300,000 for BIDV and its customers.— VNS

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