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ADB to finance 144 MW wind projects in Vietnam

The three wind projects are financed for $173 mn with a capacity of 48 MW each

The Asian Development Bank (ADB) recently announced the signing of a loan to finance and support the construction and operation of wind farms in Vietnam to produce 144 Mega Watts (MW). It had arranged $173 million to lay the three wind projects each of which will have a capacity of 48 MW and are owned by Vietnam-based Power Construction Joint Stock Company No 1 (PCC1) and Japan-based renewable producer Renova.

The wind farms will be located in the country’s Quang Tri Province and will boost the country’s wind power capacity by 30 percent. It will also help the nation to meet the rapidly growing demand for energy. The bank expects the facilities to produce an average of 422 GWh per year.

The green loan project financing package arranged and syndicated by ADB includes a $116 million ADB loan that comprises a $35 million A loan that is directly funded by the bank and an $81 million syndicated B loan. Climate Bonds initiative certified the financing. The bank uses a combination of B loans and parallel loans for mobilising a long-term US dollar limited recourse by funding from commercial banks and other development finance institutions.

B loan providers include Bank of China (Hong Kong), Bank of China (Macau), Societe Generale (Singapore), and Triodos Groenfonds NV. Parallel lenders for the project include Japan International Cooperation Agency and Export Finance Australia.

Trinh Van Tuan, board chairman and general director of PCC1, addressed the media that this is the first-ever wind project for the company. Also, for the first time, it is engaging with a group of international finance institutions and commercial banks.

Denmark-based Vestas will power the wind farm turbines. The turbine maker has stated that the wind farms are expected to go live in the third quarter of 2021.

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