The ADB and other financial and lending institutions have agreed to back TTC Energy’s 50 MW solar power plant planned to come up in Tay Ninh province of Vietnam. (Photo Credit: TTC)
- The ADB has approved a financing package of $37.8 million to be granted for a 50 MW solar power plant in Vietnam
- TTC Energy plans to use the proceeds to develop and operate the project whose cumulative cost is around $51 million
- According to the bank, this is one of the first large scale solar power project finance transactions in Vietnam and raises bankability of the project
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The Asian Development Bank (ADB) will provide a loan of $37.8 million for the development and construction of a 50 MW solar PV project in Vietnam. Recipient of the financing is TTC Energy Development Investment Joint Stock Company (TTC Energy) that plans to undertake the project in Tay Ninh province of the Asian country.
With Thai gas power company GED as its majority stakeholder, TTC Energy will work on the Gulf Solar Power Project and associated facilities to serve electricity demands of homes and businesses in Ho Chi Minh city and adjoining areas.
Of the $37.8 million financing, $11.3 million has been agreed upon as A loan and $18.9 million as B loan with the Bangkok Bank PCL, Siam Commercial Bank PCL and Standard Chartered Bank (Thai) PCL pooling in for the latter amount.
An ADB release added that $7.6 million has been offered as an additional loan from Leading Asia’s Private Infrastructure Fund, supported by the Japan International Cooperation Agency. These pooled in resources from credible institutions ensure the bankability of the project and help catalyze commercial financing for one of the first large-scale solar power project finance transactions in the country, it added.
The overall expected project cost of the 50 MW facility is around $51 million.
“Apart from providing much-needed financing to develop solar power in Viet Nam, the project will also help reduce perceived risks in the country’s renewable energy sector,” said Jackie B. Surtani, Director of Infrastructure Finance Division of ADB’s Private Sector Operations Department.
In October 2019, ADB announced a $37 million financing package for a 47.5 MW floating solar power plant in Vietnam to DHD (see ADB Backs Vietnam Floating Solar Plant With $37Mn Loan).
As the country moves towards a competitive auction scheme from an FIT based system hitherto to reach a 21% share of renewable energy in its total power mix by 2030, Vietnam is being supported by the World Bank to prepare a pilot auction program (see World Bank Secures GIF Support For Vietnam Solar Pilot).
In December 2018, TTC Group grid connected a 49 MW solar power plant in the Gia Lai province of Vietnam (see TTC Group Switches On 49 MW PV Plant In Vietnam).