The Asian Development Bank (ADB) has agreed to provide a $37.8m loan to TTC Energy Development Investment Joint Stock Company (TTC Energy) for the Gulf Solar Power project in Vietnam.

The funding will be utilised for the development and construction of a 50MW photovoltaic solar power project located 50km northwest of Ho Chi Minh City in Tay Ninh Province, Vietnam.

ADB private sector operations department infrastructure finance division director Jackie Surtani said: “Apart from providing much-needed financing to develop solar power in Viet Nam, the project will also help reduce perceived risks in the country’s renewable energy sector.”

ADB financing package includes $11.3m A loan and up to $18.9m B loan

The financing package for the solar project includes an $11.3m A loan and up to $18.9m B loan which will be funded by Bangkok Bank, Siam Commercial Bank, and Standard Chartered Bank (Thai).

Additionally, the funding also includes a $7.6m loan provided by Leading Asia’s Private Infrastructure Fund, which is supported by the Japan International Cooperation Agency.

Gulf Energy Development Public Company (GED) executive director Yupapin Wangviwat said: “We believe the project’s fundamentals were improved significantly as a result of its competitive financing structure and longer tenor led by ADB, and we are confident that the project will be developed successfully according to plan.”

Upon completion, the Gulf Solar Power facility will directly serve the energy demand of residents and businesses of Ho Chi Minh City and its surrounding areas, while offsetting 29,760 tonnes of CO2 emissions per year by 2020.

In October last year, ADB agreed to provide a $37m loan to Da Nhim–Ham Thuan–Da Mi Hydro Power (DHD) for the installation of a 47.5MW floating solar power facility on the reservoir of an existing hydropower plant in Vietnam.

Vietnam aims to increase the share of renewable energy sources, such as hydropower, solar, wind, and biomass, to 21% of the total installed capacity by 2030.