The bank said it was their first financing of a wind power project in Việt Nam, adding to the three farms in Liên Lập, Phong Huy and Phong Nguyên, 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: “Liên Lập, Phong Huy, and Phong Nguyên will add to ADB’s extensive experience in large-scale renewable energy projects in Việt 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 Trịnh Văn Tuấn 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 Việt 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.