The Asian Development Bank (ADB) has signed a $107 million loan for BIM Wind Power JSC’s 88-megawatt wind farm in Ninh Thuan province on Vietnam’s south-central coast.
The power plant is able to offset about 215,000 tons of carbon dioxide annually, ADB said Wednesday.
The loan, arranged and syndicated by ADB as mandated lead arranger and bookrunner, comprises $25 million from the bank’s ordinary capital resources, $25 million from Japan International Cooperation Agency (JICA), $13 million from Hong Kong Mortgage Corporation, $17 million from Sumitomo Mitsui Banking Corporation, $18 million from ING Bank, and $9 million from Cathay United Bank.
“Energy demand in Vietnam has grown rapidly even during the pandemic, and it is crucial that this demand be met through clean energy that will drive sustainable economic growth,” Jackie B. Surtani, ADB Private Sector Operations Department Infrastructure Finance Division director for East Asia, Southeast Asia, and the Pacific, said in a release.
He added, “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.”
ADB will also administer an additional $5 million grant from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund to help de-risk the investment.
According to the bank, the grant will be used for initiatives to mitigate environmental and social safeguards risks like reducing shadow flicker impact on residents in the project locality and the preservation of wildlife habitat.
“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 Power CEO Doan Quoc Huy.
The firm is jointly owned by ACEN Corp., through its subsidiary ACEN Vietnam Investments, and Vietnam’s Hanoi-headquartered BIM Group through its subsidiary BIM Energy Holding.
ACEN and BIM Group have been developing renewable energy projects since 2019. The former has 3,700 megawatts of energy capacity in operation and under construction in Australia, India, Indonesia, the Philippines, and Vietnam.
ACEN is the energy unit of Ayala Corporation, one of the largest and most diversified conglomerates in the Philippines.
Meanwhile, BIM Group is one of the largest private conglomerates in Vietnam with a long-established history of 30 years with interests in real estate, hospitality, agriculture, aquaculture, renewable energy, and consumer services.
BIM Energy Holding is among the top renewable platforms in Vietnam with a gross operation capacity of close to 800 MW.
Japan's JICA says it encourages further development of Vietnam's renewable energy sector through the above-mentioned BIM Wind Power project. JICA has been supporting this development through other projects funded by the international agency and administered by ADB.