October 9, 2020
Solar power plant
On Oct. 9, the Asian Development Bank (ADB) signed a loan agreement that utilized the “Leading Asia's Private Infrastructure Fund” (LEAP) funded by JICA for a solar power generation business in Vietnam.
This investment will provide a long-term loan for the construction of 257-megawatt solar power project in Phu Yen Province in central Viet Nam, making it one of the largest solar power firms in Southeast Asia. ADB's financing includes $9.3 million loan provided by LEAP. The B.Grimm Power Public Company Limited, a leading Thai independent power producer, along with Vietnam's Truong Thanh Viet Nam Group Joint Stock Company, are sponsors to this project.
This project is one of the largest solar power generation projects in Vietnam and aims to reduce dependence on coal and diesel fuel while promoting the utilization of clean domestic energy resources. It is also the first green loan in Vietnam to be certified under an international certification scheme (i.e., the Climate Bonds Standard and Certification Scheme). It is expected to meet increasing power demands in tourist areas such as Quang Ngai Province and Nha Trang City, which are located near the project site, and reduce carbon dioxide emissions by 123,000 tons per year.
The LEAP Fund is a part of the follow-up measure for the “Partnership for Quality Infrastructure,” which was announced by the Japanese government on Nov. 21, 2015. Targeting high quality private infrastructure projects in the Asia-Oceania region, the fund provides assistance for such projects organized under various arrangements, such as public-private partnerships. In March 2016, JICA approved a $1.5 billion investment in private sector investment financing for the LEAP Fund. The LEAP Fund provides support for a wide range of sustainable infrastructure projects undertaken by the private sector in ADB member countries of the Asia-Pacific region, and is directed at projects in fields such as reduction of greenhouse gas emissions, energy efficiency, and provision of medical services at reasonable prices.
JICA will continue its collaboration with countries and international organizations to promote quality infrastructure investment and contribute to social and economic development in developing countries and regions based on the Sustainable Development Goals (SDGs).