ADB Arranges $107 Million for BIM Group to Support Wind Project in Vietnam

The Asian Development Bank (ADB) has signed a financial package of $107 million with BIM Wind Power Joint Stock Company (JSC) to support the operation of an 88 MW wind energy farm located in Ninh Thuan province of Vietnam. The wind project lies to the south-central coast of the South East Asian country. BIM Wind Power JSC is a subsidiary of BIM Group- a private conglomerate in Vietnam.

The power plant will help offset 215,000 tonnes of carbon dioxide every year. ADB will offer $25 million as ordinary capital and the remaining $82 million will be parallel loans. The financial arrangement is managed by ADB as it was the lead arranger and book runner.

As far as the parallel loans are concerned, $25 million will come from the Japan International Cooperation Agency (JICA), $13 million from Hong Kong Mortgage Corporation, $18 million from ING Bank, $17 million from the Sumitomo Mitsui Banking Corporation, and $9 million from Cathay United Bank.

ADB is supporting the transition of Vietnam to a green economy for the period 2023 to 2026. Vietnam also recently launched a ‘Just Energy Transition Partnership’ that is expected to help the country achieve its 2050 net-zero goals.

Doan Quoc Huy, CEO, BIM Group, said, “We have worked very hard with the ADB and other lenders to meet international standards, especially in regard to environmental, social, and corporate governance.”

Vietnam is facing the dual challenge of meeting its rapidly growing energy demand while implementing its decarbonisation process. The country’s energy demand is continuously increasing at a rate higher than economic growth.

The CEO added, “Vietnam’s carbonisation is higher than in other ASEAN countries. Facing that challenge with support from governmental bodies and partners like the ADB, we will continue our green mission of contributing to the country’s sustainable development.”

Jackie B. Surtani, ADB Private Sector Operations Department, Infrastructure Finance Division director for East Asia, Southeast Asia, and the Pacific, commented, “This project is a crucial step toward Vietnam’s resilience and ongoing recovery by further expanding the country’s renewable energy mix and contributing to its net-zero targets.”

Last year, ADB and the Japanese Government signed a memorandum of cooperation (MOC) to enhance efforts to promote renewable and clean energy in Southeast Asia.

Additional Funds for BIM Group

Apart from the financial arrangement delivered by ADB, BIM Wind Power JSC said that it has also received a grant of $5 million from Climate Innovation and Development Fund. The fund is supported by Goldman Sachs and Bloomberg Philanthropies. The funds will be employed for environmental and social safeguard initiatives.

Today, BIM Group claims to be a leading player that delves in renewable energy in Vietnam. BIM Energy Holding Corporation (BIMEH) claims to be among the top renewable platforms in the country that has a gross operational capacity of more than 800 MW.