The Asian Development Bank (ADB) and Monsoon Wind Power Co have signed a financing agreement worth US$692.5 million to support the construction of a 600-megawatt wind power plant in southern Laos, the largest cross-border wind energy project in Asean.
The wind farm, comprising 133 wind turbines, will sell electricity to Vietnam.
BCPG Plc, the renewable power generation arm of energy conglomerate Bangchak Corporation Plc, is a major shareholder in the project through its subsidiary Impact Energy Asia Development.
An engineering, procurement and construction agreement was signed in December 2022 with PowerChina International to develop the project, which is called "Monsoon."
ADB acts as the sole mandated lead arranger and bookrunner. It arranged and syndicated the entire financing package, the largest syndicated renewable project financing transaction in Asean.
The package includes a $100-million A loan from ADB's ordinary capital resources.
The project is also co-financed by many banks, including the Export-Import Bank of Thailand and commercial banks, according to SET-listed STP&I Plc, a steel processing business operator which also invested in the project.
"Developing economies in Asia and the Pacific face shortfalls in climate investments that are needed to clear a pathway to green growth," said Suzanne Gaboury, director-general of ADB's Private Sector Operations Department.
Mobilising private capital to develop wind power facilities can solve this problem.
"The financing from ADB and its partners will help unlock Lao PDR's untapped wind resources, providing a basis for a transition to clean energy," said Ms Gaboury.
According to ADB, the Monsoon project will reduce annual greenhouse gas emissions by at least 748,867 tonnes of carbon dioxide equivalent.
The cooperation with PowerChina International would support the development of the wind farm because the Chinese company has expertise in the construction of power infrastructure, notably wind farms located in complex terrains in China and other countries, Niwat Adirek, president of BCPG, said earlier.
Monsoon is to be developed on an area covering 400,000 rai, or 64,000 hectares, in the provinces of Sekong and Attapeu, according to an agreement signed by the Lao government and BCPG in 2021.
The Lao government granted a 25-year concession for the operation of the wind farm, according to the website of the Asia Wind Energy Association.
