Lotus Wind Power Project in Viet Nam Signed
On 27 May, 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 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.
ADB mobilized long-term US dollar limited-recourse financing from commercial banks and other development finance institutions that were 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. The project will increase Viet Nam’s wind power capacity by 30%, helping the country meet the rapidly growing demand for energy. A gender action plan under the project will provide women from the local community with access to training on wind power operation and management.