ADB arranges financing for 600-MW wind project in Laos

The developer of the 600-MW Monsoon wind power project in Laos has secured USD 692 million (EUR 652m) in financing for the construction of the ground-breaking facility.

The non-recourse project financing package was signed with the Asian Development Bank (ADB), the institution and the project’s developer, Thailand-based Impact Electrons Siam Ltd (IES), announced on Wednesday.

The project will be the first wind farm in Laos and is also described as the first cross-border wind power plant in Southeast Asia.

The wind park, together with a dedicated 500-kV transmission line, will be built in the Sekong and Attapeu provinces and will sell its electricity to Vietnam Electricity (EVN) under the 25-year power purchase agreement (PPA).

The large financing transaction involves development and commercial funds. ADB acted as sole mandated lead arranger and bookrunner. It is co-financing the project together with the Asia Infrastructure Investment Bank (AIIB), Japan International Corporation Agency (JICA), the Export-Import Bank of Thailand (Thai EXIM), Sumitomo Mitsui Banking Corp (SMBC), Hong Kong Mortgage Corp Ltd (HKMC), Kasikornbank and Siam Commercial Bank.

“Developing economies in Asia and the Pacific face shortfalls in climate investments that are needed to clear a pathway to green growth,” said ADB private sector operations department director general Suzanne Gaboury. “The syndication of development and commercial financing for this project bridges this gap by mobilising private capital to develop wind resources which are translated into clean power generation that can spur economic and social advancement in the region,” added Gaboury.

The project is expected to help Laos unlock its wind resources and diversify the country’s hydro generation, which mainly occurs in the rainy season. IES has plans for a 1,000-MW expansion close to the existing Monsoon wind project site.

Chinese greentech company Envision Group last year announced a Letter of Intent (LoI) to supply turbines for the Monsoon project.

(USD 1 = EUR 0.942)

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