The International Finance Corporation (IFC) is providing a $57 million loan to the developer of two onshore wind projects in Vietnam.
The financing package includes financing mobilised by the multi-investor Managed Co-Lending Portfolio Program (MCPP) which is managed by IFC's innovative syndications platform, said a statement.
The two plants are Phu Lac 2 in Binh Thuan province and Loi Hai 2 in Ninh Thuan province with a combined capacity of 54.2 megawatts (MW). Once operational later this year, the two plants will generate 170m kilowatt hours of clean energy each year.
The company behind the plants is Thuan Binh Wind Power JSC (TBW), a subsidiary of Refrigeration Electrical Engineering Corporation (REE), which also developed the 24MW Phu Lac 1 wind plant in Binh Thuan province.
Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “The Vietnamese renewable energy agenda is one of the most ambitious in the southeast Asian region. With its long coastline, it has significant wind resources that it could commercialise. The wind power purchase agreement (PPA) has presented risk issues for foreign debt and equity providers, but this loan from the IFC demonstrates financing structures can be put in place that enable such foreign financing to be utilised.”
According to Vietnam’s national power development plan VIII (PDPVIII), it plans to double wind energy production by 2030 and triple renewable energy production between 2030 and 2045.
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