Vietnam leverages renewables | ICLG

Vietnam leverages renewables

An onshore wind project that will increase Vietnam’s wind capacity by 30%, has borrowed from The As…

An onshore wind project that will increase Vietnam’s wind capacity by 30%, has borrowed from The Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and Export Finance Australia.

The 144-megawatt wind project in Quang Tri Province, is designed to meet the rising demand for energy in Vietnam.

Mayer Brown acted as legal counsel to the lenders on the project, which comprises a trio of sub-projects with a capacity of 48 MW each.

The project used long term from both development finance institutions and commercial banks.

JICA provided USD 25 million in financing for the wind project, becoming the first Japanese company to invest in a new Vietnam-based large-scale wind project. ADB provided USD 116 million of the total USD 173 million provided, via the signing of a green loan agreement. This is also ADB’s first financing for a wind project in Vietnam.

The project’s sponsors are renewable energy development company in Vietnam and Ho Chi Minh Stock Exchange-listed Power Construction Joint Stock Company No 1, and Japanese renewable energy developer RENOVA, while the three borrowing project companies are Lien Lap Wind Power Joint Stock Company, Phong Nguyen Wind Power Joint Stock Company, and Phong Huy Wind Power Joint Stock Company.

“Lien Lap, Phong Huy, and Phong Nguyen will add to ADB’s extensive experience in large-scale renewable energy projects in Vietnam,” said Jackie Surtani, ADB private sector operations department infrastructure finance division director for East Asia, Southeast Asia and the Pacific, in a statement, adding that “this is a milestone project which demonstrates how private financing can be effectively mobilised to develop wind power projects in Asia and the Pacific”.

Mayer Brown used lawyers spread across two offices to advise the lenders. The firm’s advisory team was headed up by Singapore-based partner Ben Thompson and Ho Chi Minh City-based partner David Harrison. The team also included Singapore counsel and associate, Matthew Chow and Akemi Kishimoto, respectively, and Ho Chi Minh City counsel Hai Thao Nguyen, senior associate Orsolya Szotyory-Grove and associate Qin Sue Koh.