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ADB grants $37mn loan to solar power facility

Released at: 14:23, 02/10/2019

ADB grants $37mn loan to solar power facility

Photo: DHD

Loan to finance installation of 47.5MW peak floating PV solar power facility at DHD's Da Mi hydropower plant.

by Doanh Doanh

The Asian Development Bank (ADB) has signed a $37 million loan agreement with the Da Nhim - Ham Thuan - Da Mi Hydro Power JSC (DHD) to finance the installation of a 47.5MW peak floating photovoltaic (PV) solar power facility on the man-made reservoir at DHD’s 175MW Da Mi hydropower plant.

“This project will help boost the share of renewable energy in Vietnam’s overall energy mix and decrease the dependence on imported fossil fuels such as coal,” said Mr. Christopher Thieme, ADB Private Sector Operations Department Deputy Director General. “The pairing of these two clean energy technologies, hydropower and solar, is a simple but highly innovative achievement that can be replicated elsewhere in Vietnam and across Asia and the Pacific.”

The project marks the first large-scale installation of floating solar PV panels in Vietnam and the largest installation in Southeast Asia.

DHD, a subsidiary of the Electricity of Vietnam (EVN) Power Generation Corporation 1, currently owns and operates four hydropower plants: Da Mi (175MW), Ham Thuan (300MW), Da Nhim (160MW), and Song Pha (7.5MW). DHD’s total generation capacity is 642.5MW, or about 1.7 per cent of Vietnam’s total generation capacity.

“We are proud to be the first company in Vietnam to construct a floating solar power plant on a hydropower reservoir,” said Mr. Nguyen Trong Oanh, Chairman of the Board at DHD. “This project aligns with DHD’s strategy of investing in renewable energy to decrease dependence on fossil fuel, contribute to energy security, mitigate climate change, and promote environmental protection and sustainable socioeconomic development. Hydropower reservoirs in southern Vietnam have vast solar power potential. Capitalizing on the strong relationship between EVN and ADB, we have worked together to catalyze a new source of power for the country.”

The financing package includes a $17.6 million loan from ADB’s ordinary capital resources, supplemented by $15 million of blended concessional co-financing provided by the Canadian Climate Fund for the Private Sector in Asia and its follow-on fund, the Canadian Climate Fund for the Private Sector in Asia II. These funds were established by the Government of Canada to encourage private investment in climate change mitigation and adaptation projects in Asia and the Pacific.

The package also includes a $4.4 million parallel loan from the Leading Asia’s Private Infrastructure Fund (LEAP), supported by the Japan International Cooperation Agency through a $1.5 billion equity commitment. LEAP is focused on delivering high quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable healthcare, education, and communication services to ADB’s developing member countries.

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