The power plant is aimed to help Vietnam reach its clean energy and climate action targets by offsetting about 215,000 tonnes of carbon dioxide annually.
The financing comprises $25 million from ADB’s ordinary capital resources and $82 million in parallel loans. It was arranged by ADB as the mandated lead arranger and book runner.
The parallel loans are comprised of a $25 million loan from the Japan International Cooperation Agency, $13 million from Hong Kong Mortgage Corporation Ltd., $18 million from ING Bank, $17 million from the Sumitomo Mitsui Banking Corporation, and $9 million from Cathay United Bank.
Supporting the nation's transition to a green economy is one of ADB's two main strategies for Vietnam in the 2023-2026 period.
On December 14, Vietnam became the third country to launch the Just Energy Transition Partnership – an initiative that a number of developed countries and financial institutions are engaged in. By doing this, Vietnam is solidly committing to implementing the green transition process towards achieving its 2050 net-zero goals.
|BIM Group’s first wind farm started commercial operations in Ninh Thuan in September 2021, transforming the region into the largest salt production and renewable energy complex in Vietnam. It covers an area of 2,500 hectares and had a total investment of $521.7 million |
BIM Group’s vice chairman and CEO Doan Quoc Huy said, “We are very honoured to receive financing from a leading financial development institution in Asia as well as international commercial banks. We have worked very hard with the ADB and other lenders to meet international standards, especially in regard to environmental, social, and corporate governance.”
Huy continued, “Currently, Vietnam is facing the dual challenge of meeting its rapidly growing energy demand while implementing its decarbonisation process. The country's energy demand is continuously increasing at a rate higher than economic growth."
“Vietnam's carbonisation is higher than in other ASEAN countries. Facing that challenge with support from governmental bodies and partners like the ADB, we will continue our green mission of contributing to the country's sustainable development," he concluded.
|BIMEH is among the top 5 renewable platforms in Vietnam with a gross operational capacity surpassing 800MW |
Jackie B. Surtani, ADB Private Sector Operations Department, Infrastructure Finance Division director for East Asia, Southeast Asia, and the Pacific stated, “Energy demand in Vietnam has grown rapidly even during the pandemic, and it is crucial that this demand is met through clean energy that will drive sustainable economic growth.”
“This project is a crucial step toward Vietnam’s resilience and ongoing recovery by further expanding the country’s renewable energy mix and contributing to its net-zero targets,” added Surtani.
|Pioneering in investment fields which are closely associated with the local community, BIM Group develops high-quality products and services that are good for the environment, contributing to the promotion of Vietnam's sustainable growth. |
In addition to the $107 million financing package, BIM Wind Power JSC has also been granted $5 million from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund. The grant will be used for initiatives related to environmental and social safeguards.
Ha Bui, BIM Group’s CFO said, “We value the ADB’s and other lenders’ extensive experience and expertise drawn from their global portfolio of energy projects. This 15-year, long-term funding comes as a stamp of approval for our relentless efforts to pursue sustainable development, including green and sustainable financing.”
Established in 1994, BIM Group is a leading private conglomerate in Vietnam. With a long-term strategic vision, the group focuses on four main activities including real estate, renewable energy, aquaculture and foods, and consumer and lifestyle goods.
BIM Wind is jointly owned by BIM Group JSC – holding a 70 per cent stake via its energy platform BIM Energy Holding Corporation (BIMEH) – and ACEN Vietnam Investments Pte., Ltd. (ACEN) – holding the remaining 30 per cent stake.
BIMEH is among the top 5 renewable platforms in Vietnam with a gross operational capacity exceeding 800MW, meanwhile, ACEN is a subsidiary of the Ayala Corporation – one of the largest and most diversified conglomerates in the Philippines.
| ||Vietnam needs to prepare financing for just energy transition |
The United Nations Development Program believes that increasing the capacity of domestic financial institutions to mobilise long-term capital is at the core of the climate transition in Vietnam.
| ||The keys to financing a just energy future |
Vietnam has made an international commitment to achieve net-zero greenhouse emissions by 2050. Kanni Wignaraja, assistant secretary-general at the UN and regional director for Asia-Pacific at the United Nations Development Programme, writes about how the country can transition to a just energy future, with finance and governance accelerators.
| ||Financing the net-zero transition |
Recent projections continue to show Vietnam as the fastest-growing economy in Southeast Asia coming out of the pandemic. Srinath Komarina, programme manager at the Global Green Growth Institute in Vietnam, explains how using innovative instruments like green bonds can meet the country’s targets, both for the environment and the economy.
| ||Vietnam leads transition to clean energy in Southeast Asia |
Vietnam is leading the transition to clean energy in Southeast Asia and is a bright spot on an otherwise soot-black map, according to an article published recently on The Economist.