MANILA, PHILIPPINES (27 May 2021) — The Asian Development Bank (ADB) signed a $116 million green loan with Lien Lap Wind Power Joint Stock Company (Lien Lap), Phong Huy Wind Power Joint Stock Company (Phong Huy), and Phong Nguyen Wind Power Joint Stock Company (Phong Nguyen) to build and operate three 48-megawatt (MW) wind farms, totaling 144 MW, in Quang Tri Province, Viet Nam. The project will increase Viet Nam’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 (PCC1) and RENOVA, Inc.

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 Viet Nam, 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 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,” said ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B. Surtani. “This is a milestone project which demonstrates how private financing can be effectively mobilized to develop wind power projects in Asia and the Pacific.”

“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,” said PCC1 Chairman of the Board of Directors and General Director Trinh Van Tuan. “ADB’s leadership in deal structuring, due diligence, and loan syndications is very crucial for the success of this transaction.” 

“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,” said RENOVA Founding CEO Yosuke Kiminami. “We very much appreciate ADB’s participation and tremendous support to ensure that the project meets international environmental and social standards.” 

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.

PCC1 has nearly 60 years of experience in Viet Nam’s power infrastructure sector, specializing in constructing power transmission networks and substations. It is among the largest hydropower developers domestically and is listed on the Ho Chi Minh Stock Exchange. RENOVA is a Japanese renewable energy developer and operator of renewable energy power generation facilities including solar, wind, biomass, and geothermal power plants. Established in 2000, the company is listed on the 1st Section of the Tokyo Stock Exchange.    

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

This was originally posted on ADB.