ADB provides $116 mln loan to develop wind power in Vietnam
ADB signed a $116 million loan with Lien Lap Wind Power JSC, Phong Huy Wind Power JSC, and Phong Nguyen Wind JSC to build and operate three 48-megawatt wind farms, totaling 144 MW, in Quang Tri Province.
The project will increase Vietnam’s wind power capacity by 30%, helping the country meet the rapidly growing demand for energy. Lien Lap, Phong Huy, and Phong Nguyen are owned by Power Construction Joint Stock Company No.1 and RENOVA, Inc, ADB said in a statement.
The loan forms part of a $173 million green loan project financing package arranged and syndicated by ADB as mandated lead arranger and bookrunner. It is ADB’s first financing of a wind power project in Vietnam, and is certified by the Climate Bonds Initiative, which administers the international Climate Bond Standard and Certification Scheme.
The ADB loan comprises a $35 million A loan directly funded by ADB and an $81 million syndicated B loan.
Lien Lap, Phong Huy, and Phong Nguyen is expected to 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, said ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B. Surtani.
ADB mobilized long-term US dollar limited-recourse financing from commercial banks and other development finance institutions that was unavailable locally. This was done through a combination of B loans and parallel loans.
Parallel lenders include the Japan International Cooperation Agency and Export Finance Australia. B loan participants include Bank of China (Hong Kong) Limited; Bank of China Limited Macau Branch; Société Générale, Singapore Branch; and Triodos Groenfonds N.V.
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 operation and management.