|Participants in the loan deal signing ceremony pose for a photo (Photo: adb.org)
TTC Energy, established in 2017, is 90 percent owned by the Gulf Energy Development Public Company (GED) – a leading private power generation company that has the largest portfolio of gas-fired power projects in Thailand.
The project will develop and operate the 50 MW solar power plant and its associated facilities in Tay Ninh, which is about 50 kilometers northwest of Ho Chi Minh City.
The solar power plant will directly serve the electricity demand of residents and businesses of Ho Chi Minh City and surrounding areas. It will reduce annual carbon dioxide emissions by 29,760 tonnes annually when operational in 2020.
The Government of Vietnam plans to increase the share of renewable energy sources, such as hydropower, solar, wind, and biomass, as a percentage of total installed capacity to 21 percent by 2030 to meet rapidly growing energy needs and reduce greenhouse gas emissions by up to 25 percent by 2030.
GED Executive Director Yupapin Wangviwat said “We are confident that the project will be developed successfully according to plan.”
ADB’s assistance for the Gulf Solar Power Project was provided through an innovative project finance structure, which ensured the bankability of the project. The loan is composed of an A loan of 11.3 million USD and a B loan of up to 18.9 million USD.
An additional 7.6 million-USD loan was provided by the Leading Asia’s Private Infrastructure Fund, which is supported by the Japan International Cooperation Agency. The loan marks the first transaction under the fund’s Non-Parallel programme and improves the bankability and financial viability of the project to allow other lenders to provide long tenor, 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 Infrastructure Finance Division of ADB’s Private Sector Operations Department, said “ADB is excited about this transaction because the project will have a significant impact on the sustainability and security of Vietnam’s energy sector for years to come. Apart from providing much-needed financing to develop solar power in Vietnam, the project will also help reduce perceived risks in the country’s renewable energy sector.”