The Japan International Cooperation Agency (JICA) in Vietnam has just signed a loan agreement of up to $25 million for an onshore wind power project in Quang Tri province.
|Quang Tri has great advantages for the development of green energy such as wind and solar power |
Accordingly, the Asian Development Bank (ADB), Export Finance of Australia (EFA), Japan International Cooperation Agency (JICA), and members of Power Construction JSC No.1 (PCC1), including Lien Lap Wind Power JSC, Phong Huy Wind Power JSC, Phong Nguyen Wind Power JSC, have signed a $173 million green loan to develop wind power projects with a total capacity of 144MW in Huong Hoa district, Quang Tri province.
This is JICA's first project-financed wind power production project in Vietnam and is expected to be a model for wind power projects run by the private sector, including Japanese and Vietnamese companies operating in the field of renewable energy.
This is the first and largest wind power project in Vietnam invested in by Japanese enterprises. In addition, the project also contributes to the implementation of the Initiative on Overseas Loan and Investment for ASEAN announced at the ASEAN-Japan Summit on November 4, 2019.
The project’s investors are PCC1, a large Vietnamese company in the field of renewable energy development and electrical construction and installation, and RENOVA Inc., a leading Japanese renewable energy company.
According to PCC1, the projects will generate 422GWh of electricity and will help reduce 162,430 tonnes of CO2 emissions annually. Together with seven other renewable energy plants in operation, each year, PCC1 will help to avoid more than 500,000 tonnes of CO2 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 local socio-economic development.