ADB arranges financing for 144 MW of wind in Vietnam

The Asian Development Bank (ADB) has arranged USD 173 million (EUR 141.5m) in financing to back the construction and operation of a trio of wind farms in Vietnam totalling 144 MW.

The three wind projects, each with a capacity of 48 MW, are owned by Vietnam’s Power Construction Joint Stock Company No 1 (PCC1) and Japanese renewable power producer Renova Inc (TYO:9519). Located in Vietnam’s Quang Tri Province, the wind farms will boost the country’s wind power capacity by 30%, helping it meet quickly increasing energy demand, ADB said. The facilities are expected to produce an average of 422 GWh per year.

The green loan project financing package arranged and syndicated by ADB includes a USD-116-million ADB loan that consists of a USD-35-million A loan directly funded by the bank and an USD-81-million syndicated B loan. The financing is certified by the Climate Bonds Initiative.

For PCC1, this is the first wind power project and the first time it has engaged with a group of international finance institutions and commercial banks, said the company's board chairman and general director Trinh Van Tuan.

ADB used a combination of B loans and parallel loans to mobilise long-term US dollar limited-recourse financing from commercial banks and other development finance institutions. Parallel lenders include the Japan International Cooperation Agency and Export Finance Australia, while B loan providers include Bank of China (Hong Kong) Ltd; Bank of China Ltd Macau Branch; Societe Generale, Singapore Branch; and Triodos Groenfonds NV.

The wind farms will be powered by Vestas turbines. Announcing the order for 36 units of its V150-4.2 MW wind turbines, delivered in 4.0 MW operating mode, a year ago, the Danish turbine maker said that the wind farms are planned to go live in the third quarter of 2021.

The project is being realised under 20-year power purchase agreements (PPAs) with EVN.

(USD 1.0 = EUR 0.818)

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