To support the growing demand for energy, Power Construction Joint Stock Company No.1 (PCC1), as the principal shareholder with financial guarantee responsibility, and RENOVA, Inc. joined forces to build onshore wind farms in Vietnam with financing support from Export Finance Australia.
PCC1 is one of the largest renewable power plant developers domestically, specialising in constructing power facilities in Vietnam. RENOVA is a Japanese renewable energy developer and operator of renewable energy power generation facilities. This is a unique partnership as it is RENOVA’s first project outside of Japan and PCC1’s first wind projects.
To enable the development, construction and operation of three wind farms in Quang Tri province in the central highlands of Vietnam, the project sponsors required a US$173 million Green loan project financing package.
In collaboration with the Asian Development Bank, the Japan International Cooperation Agency and private financiers, we provided a US$32 million (A$41 million) loan as part of a green syndicated finance facility.
“These are important development partners for Australia that leverage significant financial resources and expertise to support sustainable development in the region,” said Swati Dave, Managing Director & CEO at Export Finance Australia.
Investing in the future
Expected to generate an average of 422 gigawatt-hours of electricity, the project will increase Vietnam’s wind power capacity by 30%, avoiding an average of 162,430 tons of CO2 emissions annually.
The projects will also provide women from the local community with access to training on wind power operation and management, under its gender action plan.
The projects are also a demonstration of the importance of the Australia-Vietnam bilateral relationship.
“Export Finance Australia’s contribution to the syndicated loan facility represents its first major overseas renewable energy financing and is a fantastic demonstration of its flexible financing mandate,” said Her Excellency Robyn Mudie, Australian Ambassador to Vietnam.