JICA-funded “LEAP” fund finances one of the largest solar power plants in Vietnam
20:59 | 09/10/2020 Print Article
On October 9, 2020, the Asian Development Bank (ADB) signed a loan agreement that utilises the “Leading Asia's Private Infrastructure Fund” (LEAP) funded by JICA for a solar power generation business in Vietnam.
|The ADB will provide a loan from the LEAP Fund by JICA for a solar farm in Vietnam. Photo: a solar power project in Phu Yen, Vietnam |
This investment will provide a long-term loan for the construction of a 257MW solar power project in Phu Yen province in Central Vietnam, making it one of the largest solar power firms in Southeast Asia. ADB's financing includes a $9.3 million loan provided by LEAP. B.Grimm Power PCL, a leading Thai independent power producer, along with Vietnam's Truong Thanh Viet Nam Group JSC, are sponsors to this project.
This project is one of the largest solar power generation projects in Vietnam and aims to reduce dependence on coal and diesel fuel while promoting the utilisation of clean domestic energy resources. It is also the first green loan in Vietnam to be certified under an international certification scheme (the Climate Bonds Standard and Certification Scheme). It is expected to meet increasing power demands 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 123,000 tonnes per year.
The LEAP Fund is a part of the follow-up measure for the Partnership for Quality Infrastructure, which was announced by the Japanese government on November 21, 2015. Targeting high-quality private infrastructure projects in the Asia-Oceania region, the fund provides assistance for projects organised under various arrangements, such as public-private partnerships.
In March 2016, JICA approved a $1.5 billion investment in private sector investment financing for the LEAP Fund. The LEAP Fund provides support for a wide range of sustainable infrastructure projects undertaken by the private sector in ADB member countries of the Asia-Pacific region and is directed at projects in fields such as the reduction of greenhouse gas emissions, energy efficiency, and the provision of medical services at reasonable prices.
JICA will continue its collaboration with countries and international organisations to promote quality infrastructure investment and contribute to social and economic development in developing countries and regions based on the United Nations Sustainable Development Goals.