International Finance Corporation (IFC), the private sector arm of the World Bank Group, is considering extending a senior loan of up to $60 million to Thuan Binh Wind Power Joint Stock Company (TBW), one of the first wind power companies in Vietnam, according to a disclosure.
TBW, founded in 2009 with headquarters in Binh Thuan province, is currently developing the 26-MW Phu Lac 2 wind power project in the province and the 28.9-MW Loi Hai 2 wind power project in Ninh Thuan province.
The projects, which are expected to collectively cost approximately $84 million, will be funded through the proposed $60-million, 12-year, senior secured corporate loan from the IFC and $24 from TBW.
IFC said TBW has developed and operated the Phu Lac 1 wind power project in Binh Thuan since September 2016.
Its major shareholders are REE Energy Company Limited, a subsidiary of Refrigeration Electrical Engineering Corporation (REE); Da Nhim-Ham Thuan-Da Mi Hydro Joint Stock Company; Thac Mo Hydro Joint Stock Company; and Power Engineering Consulting Joint Stock Company 3.
In its disclosure, IFC said the projects, which will be majority funded by the proposed loan, will help address growing demand and expected electricity shortages in Vietnam.
“Beyond the project, the investment is expected to increase market competitiveness by supporting much-needed private investment in the energy sector, which has been dominated by state-owned enterprises and demonstrating the role of wind power in Vietnam’s electricity generation mix,” IFC added.
Vietnam’s electricity demand has increased at a rapid pace—an average of 10 per cent per year over the past five years. To keep up with demand, the country will need a significant amount of new capacity, requiring $150 billion in capital investments for generation and grid upgrades, according to Electricity of Vietnam (EVN’s) estimates.
IFC, which established its office in Vietnam in 1997, supports the country’s sustainable development and boosts its economic competitiveness by helping attract international investors to sectors such as finance, infrastructure, manufacturing, and renewable energy.
Last week, it proposed participating in a $180-million financing for the Vietnamese animal and aqua feed producer GreenFeed Vietnam Corporation.