Hanoi (VNA) – The Asian Development Bank (ADB)has signed a 37.8 million-USD loan deal with TTC Energy Development InvestmentJSC (TTC Energy) to provide long-term financing to develop and operate a 50-MWphotovoltaic solar power plant in the southern province of Tay Ninh.

TTC Energy, established in 2017, is 90 percentowned by the Gulf Energy Development Public Company (GED) – a leading privatepower generation company that has the largest portfolio of gas-fired powerprojects in Thailand.

The project will develop and operate the 50 MWsolar power plant and its associated facilities in Tay Ninh, which is about 50kilometers northwest of Ho Chi Minh City. 

The solar power plant will directly serve theelectricity demand of residents and businesses of Ho Chi Minh City andsurrounding areas. It will reduce annual carbon dioxide emissions by 29,760tonnes annually when operational in 2020.

The Government of Vietnam plans to increase theshare of renewable energy sources, such as hydropower, solar, wind, andbiomass, as a percentage of total installed capacity to 21 percent by 2030 tomeet rapidly growing energy needs and reduce greenhouse gas emissions by up to25 percent by 2030.

GED Executive Director Yupapin Wangviwat said“We are confident that the project will be developed successfullyaccording to plan.”

ADB’s assistance for the Gulf Solar PowerProject was provided through an innovative project finance structure, whichensured the bankability of the project. The loan is composed of an A loan of11.3 million USD and a B loan of up to 18.9 million USD.

An additional 7.6 million-USD loan was providedby the Leading Asia’s Private Infrastructure Fund, which is supported by theJapan International Cooperation Agency. The loan marks the first transactionunder the fund’s Non-Parallel programme and improves the bankability andfinancial viability of the project to allow other lenders to provide longtenor, US dollar-denominated financing. 

The B loan will be funded by Bangkok Bank PCL,Siam Commercial Bank PCL, and Standard Chartered Bank (Thai) PCL.

Jackie B. Surtani, Director of InfrastructureFinance Division of ADB’s Private Sector Operations Department, said “ADB isexcited about this transaction because the project will have a significantimpact on the sustainability and security of Vietnam’s energy sector for yearsto come. Apart from providing much-needed financing to develop solar power inVietnam, the project will also help reduce perceived risks in thecountry’s renewable energy sector.”/.