A developer alongside a regional bank has signed an agreement to fund USD 692 million for the 600MW “Monsoon Wind Power Project,” Southeast Asia’s largest wind power project based in Laos.
Impact Electrons Siam Ltd (IES), Thailand’s top renewable energy solutions provider, has signed a finance agreement as the Monsoon Wind Power Project’s developer with the Asian Development Bank (ADB) as the loan’s arranger.
The Director-General of ADB’s Private Sector Operations Department also spoke on the occasion regarding the signing of this landmark agreement.
“The financing from ADB and its partners will help unlock Laos’s untapped wind resources, providing a basis for a transition to clean energy,” said Ms. Suzanne Gaboury.
The Monsoon project, according to ADB, would also cut yearly greenhouse gas emissions equivalent to at least 748,867 tonnes of carbon dioxide.
“Developing economies in Asia and the Pacific face shortfalls in climate investments that are needed to clear a pathway to green growth,” added Ms. Gaboury.
Numerous banks, including the Export-Import Bank of Thailand and commercial banks, also reportedly co-founded the project. Furthermore, ACEN Renewables International Pte. Ltd., STP&I Public Company Limited, and SMP Group are among the other co-financiers of this project.
Laopost also reported that the project will be constructed over three years (including transmission line construction), with a concession term of 25 years and a total expenditure of USD 900 million (including the construction of the Laos-Vietnam border transformer station).
The project encompasses two districts in two different provinces: Dak Chuang District in Sekong Province and Sanxay District in Attapeu Province, covering an area of 64,000 hectares. Vietnam Electricity (EVN) will be purchasing the energy generated from this project, as decided by a 25-year power purchase agreement.