Lenders are set to approve debt financing for a $155 million wind power project in south-central Vietnam.
The JV of ACEN (65%) and BIM (35%) owns and operates the 88MW onshore wind farm in Ninh Thuan province. The project involves 22 wind turbine generators on salt field production land.
Asian Development Bank, as the MLA, targets to receive board approval for the debt package by early November (2022), following approval by its credit committee on 13 September (2022).
The $91.4 million loan syndication is a US dollar-denominated limited-recourse project financing. The loan comprises 2 tranches:
- A loan – $35 million
- B loan (commercial) – $56.4 million
The project in September 2021 commenced operations without ADB funding due to the tight timeline to obtain PPA under the feed-in tariff (FIT) scheme with state-owned Vietnam Electricity (EVN).
The Ministry of Industry and Trade this month (October 2022) announced an electricity price range for transitional wind and solar power projects that couldn't sell electricity to EVN since the FIT expired on November 2021. The FIT was $0.0085 per kWh for onshore wind and $0.0098 for offshore wind.
The multilateral requires an environmental and social compliance audit for the project to be eligible for funding. It subsequently updated the study to cover the full construction phase and early operations phase from July 2020 to November (2022).
Involved companies include:
- Arup – ADB’s E&S
- K2 Management – owner’s engineer consultant
- PCC1 – substation contractor
- General Electric – wind turbine supplier