On May 27th, 2021, the Asian Development Bank (ADB), the Export Finance of Australia (EFA), the Japan International Cooperation Agency (JICA) and Lien Lap Wind Power JSC, Phong Huy Wind Power JSC., Phong Nguyen Wind Power JSC., (members of Power Construction Joint Stock Company No.1 - PCC1) have signed a $173 million green loan to develop wind power projects with a total capacity of 144 megawatts (MW) in Huong Hoa district, Quang Tri province. This is PCC1's first green loan for wind power projects.
The green loan project financing package was structured and syndicated by Asian Development Bank (ADB), who is the mandated lead arranger and bookrunner for this transaction. The lenders include ADB, Export Finance Australia (EFA), and Japan International Cooperation Agency (JICA). The ADB loan comprises of an A loan directly funded by ADB and a syndicated B loan that is funded by Bank of China (Hong Kong) Limited, Bank of China Limited - Macau Branch, Société Générale - Singapore Branch, and Triodos Groenfonds N.V. This green loan is certified by the Climate Bonds Initiative, which administers the international Climate Bond Standards and Certification Scheme.
“This is the first time we have directly cooperated with a group of international finance institutions and commercial banks in the field of renewable energy investment through a limited-recourse project finance loan without any government guarantees,” said Mr. Trinh Van Tuan, Chairman of the Board of Directors “The successful cooperation with ADB, JICA, EFA and international lenders has affirmed PCC1's position, prestige and financial capacity in both domestic and international markets”.
Lien Lap, Phong Huy and Phong Nguyen wind power projects are co-invested by PCC1 and RENOVA, Inc. The projects will generate 422 gigawatt-hours of electricity and will help reduce 162,430 tons of carbon dioxide emissions annually. Together with other 07 renewable energy plants in operation, every year, PCC1 will help to avoid more than 500,000 tons of carbon dioxide emissions. Moreover, the projects adhere to international environmental and social standards and will positively contribute to the enhancement of livelihoods and gender equality, as well as the local socio-economic development.
Power Construction Joint Stock Company No 1, with nearly 60 years of construction and development, has mastered advanced technologies with the position of a prestigeous and big EPC contractor for super high-voltage power transmission projects and renewable energy plants. At the same time, PCC1 is also the investor of many renewable energy plants which adhere to international social and environmental standards with the target of 700 MW connected to the national grid by 2025, making positive contribution in ensuring energy security and clean power in Vietnam
