ADB finances largest single operating solar power plant in central province
VGP - The Asian Development Bank (ADB) and Phu Yen TTP Joint Stock Company on October 9 signed a US$186 million loan for the development and operation of a 257 MW solar power plant in Phu Yen Province.
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The financing comprises a US$27.9 million loan funded by ADB, a US$148.8 million syndicated loan (B loan) funded by commercial banks with ADB as Lender of Record, and a US$9.3 million loan provided by Leading Asia’s Private Infrastructure Fund (LEAP).
The B loan is the first green B loan in Asia and the Pacific region certified by the Climate Bonds Initiative, and one of the largest B loans ever in Viet Nam.
Participating banks include Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commercial Bank of China and Standard Chartered.
This project will support the rapid development of Viet Nam’s solar power capacity, advance the country’s low-carbon growth goals, and catalyze further commercial bank financing for renewable energy, said Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific at ADB's Private Sector Operations Department Jackie B. Surtani.
The project is the largest single operating solar power plant in Viet Nam, one of the largest in Southeast Asia, and will help to reduce 123,000 tons of carbon dioxide annually. The power plant directly serves the electricity demand of Quang Ngai and Nha Trang cities and surrounding areas in a region emerging as one of Viet Nam’s key tourist centers.
This transaction will support the development of clean and sustainable energy in Viet Nam and help promote the green loan market in Southeast Asia, said B.Grimm Power President Preeyanart Soontornwata.
Established in 1993, B.Grimm Power is one of Thailand’s largest private power producers with a total capacity of 2.9 gigawatts, including 24 solar power plants.
LEAP was established in 2016 with a $1.5 billion capital commitment from the Japan International Cooperation Agency. It is focused on delivering high quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing member countries.
Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy and also administers the international Climate Bond Standards and Certification Scheme./.
By Thuy Dung
