ADB approves $20m loan to Binh Duong's waste management project in Vietnam

ADB approves $20m loan to Binh Duong's waste management project in Vietnam

Binh Duong province, Vietnam. Photo by Vinh Thang on Unsplash

The Asian Development Bank (ADB) has approved a loan of $20 million to Binh Duong Water Environment JSC to support its Binh Duong Waste Management and Energy Efficiency project, according to a disclosure.

The financing comprises $7 million from Japan, $7 million in ordinary capital resources, and $6 million from Leading Asia’s Private Infrastructure Fund (LEAP), an ADB-managed fund capitalised with a $1.5 billion commitment by the Japan International Cooperation Agency (JICA).

The proceeds will be used for the purpose of financing the operation and expansion of a composting plant with a capacity of 840 tons/day and an industrial and municipal solid waste incinerator using waste-to-energy (WTE) technology with a capacity of 200 tonnes/day at the South Binh Duong Solid Waste Treatment Complex in Binh Duong Province, ADB said in the disclosure.

Binh Duong Water Environment JSC operates in the waste management industry in Vietnam. The business activities of the company include treatment and supply of clean water, investment in the management of drainage systems, construction and repair of water supply, and supervision of construction.

ADB is one of the most active international financial lenders in Vietnam. Most recently, ADB and Vietnam Prosperity Joint Stock Commercial Bank signed a loan package of up to $500 million to expand financial access to women-owned small and medium-sized enterprises and social loan projects in Vietnam.

In October, ADB mobilised a $135 million climate financing package for VinFast Trading and Production Joint Stock Company (VinFast) for manufacturing Vietnam’s first fully-electric public transport bus fleet and first national electric vehicle (EV) charging network.

The assistance will support Vietnam’s efforts to achieve net-zero greenhouse gas emissions and expand high-tech manufacturing industries.

Earlier, ADB also proposed to extend a loan of about $91.4 million to AC Energy’s wind power projects in Vietnam. The proposed loans will be disbursed to BIM Wind Power Joint Stock Company, which, together with its partner AC Energy, operates AC Energy Wind Power Project.

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