The Asian Development Bank (ADB) on October 9 signed a loan agreement worth US$186 million for a solar power project in Vietnam, marking it the country’s first certified green loan.
Funded by the Japan International Cooperation Agency (JICA) that utilizes the “Leading Asia’s Private Infrastructure Fund” (LEAP), the syndicated loan is the first green B loan in the Asia-Pacific to be certified under an international certification scheme by the Climate Bonds Initiative.
The loan enables the investors who are Thai B.Grimm Power Public Company Limited and Vietnam’s Truong Thanh Vietnam Group JSC (TTVN) to develop a 257-megawatt so power farm in Vietnam’s central province of Phu Yen, the largest single operating solar power plant in Vietnam and one of the biggest in Southeast Asia, according to JICA.
Provided by ADB and commercial banks including Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commercial Bank of China, and Standard Chartered Bank, the project aims to reduce dependence on coal and diesel fuel while promoting the utilization of clean domestic energy resources.
It is expected to meet increasing power demand in tourist areas such as Quang Ngai province and Nha Trang city, which are located near the project site, and reduce carbon dioxide emissions by 123000 tons per year, JICA said in a press release.
The project will support the rapid development of solar power capacity in Vietnam, advancing the country’s green growth strategy that promotes the process of restructuring and improving economic institutions towards more efficient use of natural resources.
The project is part of JICA’s broad support to promote quality infrastructure investment and contribute to social and economic development in developing countries based on the Sustainable Development Goals (SDGs).
Vietnam has planned to tap its solar potential which is around 13.5 gigawatt (GW) in the next decade starting from 2020.
- Phu Yen JSC wins $186-million loan from ADB to build solar power plant
- ADB and Phu Yen sign Viet Nam’s first certified green loan for 257 MW solar power project
- ADB, Phu Yen JSC sign Vietnam’s first certified green loan for 257 MW solar power plant
- ADB, Phu Yen JSC sign Vietnam’s first certified green loan for 257 MW solar power project
- ADB backs $186 mln solar power plant in central Vietnam
- JICA s first project finace loan for wind power project in Vietnam
- IFC provides funding for two wind power projects in Vietnam
- Largest solar plant in Southeast Asia begins operating in Vietnam
- First solar power plant in Hau Giang put into operation