The Asian Development Bank (ADB) has pledged a financing package worth US$682.55 million for a 600-megawatt wind power project in Laos to export the output to neighboring Vietnam.

In particular, the ADB and Monsoon Wind Power Company Limited on Wednesday signed the nonrecourse financing package for the project, which will be developed in Laos’ southern provinces of Sekong and Attapeu.

The Monsoon Wind power project, which will combine 133 wind turbines, will be the first of its kind in Laos and the largest one in Southeast Asia upon completion.

The power generated by the project will be sold to Vietnam Electricity Group (EVN) for 25 years through a 500-kV transmission line.

The package comprises a $100 million A loan from ADB’s ordinary capital resources, a $150 million syndicated B loan, $50 million in concessional financing, $382.55 million in parallel loans, and a $10 million grant. 

“Developing economies in Asia and the Pacific face shortfalls in climate investments that are needed to clear a pathway to green growth," said General Suzanne Gaboury, director of ADB private sector operations department.

“The syndication of development and commercial financing for this project bridges this gap by mobilizing private capital to develop wind resources which are translated to clean power generation that can spur economic and social advancement in the region.”

The project will reduce annual greenhouse gas emissions by at least 748,900 tons of carbon dioxide equivalent.

The Vietnamese government had earlier approved the import of electricity from Laos with a total capacity of nearly 2,700 megawatts.

In addition, EVN has reported to the Ministry of Industry and Trade that 10 plants with a combined capacity of 1,600 megawatts in Laos have proposed selling their output to Vietnam. 

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