Sun, 2nd Apr 2023 06:27 (GMT +7)

ADB signs 107 million USD financing package to support wind energy in Vietnam

Thursday, 22/12/2022 | 10:01:16 [GMT +7] A  A

The Asian Development Bank (ADB) has signed a financing project worth 107 million USD with BIM Wind Power Joint Stock Company (BIM Wind), to support the operation of an 88 MW wind farm in Ninh Thuan province.

A wind farm in Ninh Thuan.

The power plant will help Vietnam meet its clean energy and climate action goals, by offsetting about 215,000 tonnes of carbon dioxide per year.

The financing package was arranged and syndicated by ADB, as mandated lead arranger and bookrunner, which comprises 25 million USD from ADB’s ordinary capital resources, 25 million USD from Japan International Cooperation Agency, 13 million USD from Hong Kong Mortgage Corporation Limited, 17 million USD from Sumitomo Mitsui Banking Corporation, 18 million USD from ING Bank, and 9 million USD from Cathay United Bank.

“Energy demand in Viet Nam has grown rapidly even during the pandemic, and this demand must be met through clean energy, that will drive sustainable economic growth,” said ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B. Surtani. “This project is a crucial step toward Vietnam’s resilience and ongoing recovery, by further expanding the country’s renewable energy mix and contributing to its net-zero targets,” he noted.

ADB will also administer an additional 5 million USD grant from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund, to help de-risk the investment. Specifically, the grant will be used for initiatives to mitigate environmental and social safeguard risks, such as reducing shadow flicker impact on residents in the project locality and the preservation of wildlife habitat.

“We are very honoured to receive financing from a leading development finance institution in Asia, as well as international commercial banks. We have worked very hard with ADB and other lenders to meet international standards, especially in regards to Environment, Social, and Governance,” said BIM Wind JSC CEO Doan Quoc Huy. “The success of this transaction supports Vietnam’s transition to a low-carbon economy. We continue to pursue our mission toward the sustainable development of clean energy in Vietnam,” Huy added.

Source: Nhan Dan