Day: December 21, 2022

MANILA, PHILPPINES (21 December 2022) — The Asian Development Bank (ADB) has approved a $5 million grant to help fund the preparation of ADB-supported clean energy projects in the Federated States of Micronesia (FSM).

The grant will fund assessments, planning, and capacity building to promote energy efficiency and implement clean energy projects including solar and hydro. ADB is providing $5 million from its Asian Development Fund (ADF) for the grant, while the Government of the FSM is contributing $500,000 in-kind support. ADF provides grants to ADB’s poorest and most vulnerable developing member countries.

“The project readiness financing (PRF) will create an enabling environment for the introduction of innovative technology solutions and business models for clean energy projects. This will help resolve medium-term challenges, including reliable access to affordable electricity while accelerating the FSM’s clean energy transition,” said ADB Principal Energy Specialist for the Pacific Len George.

Each state in the FSM is served by a state-owned utility that generates, distributes, and supplies electricity. Some utilities also offer services including water, sewerage, and telecommunications. The decentralized structure imposes constraints on standardized design, procurement, and staff training that impact cost and service delivery.

The PRF will expedite the preparation of clean energy projects with cross-sectoral benefits, including access to drinking water through support for feasibility studies, engineering designs, and advance procurement; small-scale pilot-testing of relevant commercially deployable clean energy technologies; assistance with coordination for national clean energy investments and strengthening the capacity of utilities and key agencies in the energy sector.

The projects advanced under ADB’s PRF will contribute to the FSM’s Strategic Development Plan, 2004–2023 and will align with the FSM’s priorities of 100% electricity access and a shift toward clean energy sources.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: Asian Development Bank

HA NOI, VIET NAM— The Asian Development Bank (ADB) signed a $107 million financing project with BIM Wind Power Joint Stock Company (BIM Wind) to support the operation of an 88-megawatt (MW) wind farm in Ninh Thuan province, Viet Nam.

The power plant will help Viet Nam reach its clean energy and climate action targets by offsetting about 215,000 tons of carbon dioxide annually.

This innovative $107 million project financing is arranged and syndicated by ADB as mandated lead arranger and bookrunner, and comprises $25 million from ADB’s ordinary capital resources, $25 million from Japan International Cooperation Agency, $13 million from Hong Kong Mortgage Corporation Limited, $17 million from Sumitomo Mitsui Banking Corporation, $18 million from ING Bank, and $9 million from Cathay United Bank.

“Energy demand in Viet Nam has grown rapidly even during the pandemic, and it is crucial that this demand be met through clean energy that will drive sustainable economic growth,” said ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B. Surtani. “This project is a crucial step toward Viet Nam’s resilience and ongoing recovery by further expanding the country’s renewable energy mix and contributing to its net-zero targets.”

ADB will also administer an additional $5 million grant from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund to help de-risk the investment. Specifically, the grant will be used for initiatives to mitigate environmental and social safeguards risks such as reducing shadow flicker impact on residents in the project locality and the preservation of wildlife habitat.

“We are very honored to receive financing from a leading development finance institution in Asia as well as international commercial banks. We have worked very hard with ADB and other lenders to meet international standards, especially in regards to Environment, Social, and Governance,” said BIM Wind JSC CEO Doan Quoc Huy. “The success of this transaction supports Viet Nam’s transition to a low carbon economy. We continue to pursue our mission toward the sustainable development of clean energy in Viet Nam.”

BIM Wind is jointly owned by ACEN Corporation through its subsidiary, ACEN Vietnam Investments Pte. Ltd., and the BIM Group through its subsidiary, BIM Energy Holding Corporation (BIMEH). ACEN and BIM Group have been developing renewable energy projects since 2019. ACEN has 3,700 MW of attributable energy capacity in operation and under construction in Australia, India, Indonesia, the Philippines, and Viet Nam, with a renewable share of 93% among the highest in the region. ACEN is a subsidiary of Ayala Corporation, one of the largest and most diversified conglomerates in the Philippines. BIM Group is one of the largest private conglomerates in Vietnam with a long-established history of 30 years with interests in real estate, hospitality, agriculture, aquaculture, renewable energy, and consumer services. BIMEH is among the top five renewable platforms in Vietnam with a gross operation capacity of close to 800 MW.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: Asian Development Bank

ULAANBAATAR, MONGOLIA— The Asian Development Bank (ADB) and the Government of Mongolia signed a $2 million grant to increase efficient and renewable energy heating systems in remote areas in Mongolia.

ADB will administer the $2 million grant financing from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), which has supported projects in Mongolia in poverty alleviation, livelihood improvement, and environment safeguards over the past 20 years. JFPR is funded by the Government of Japan.

“Adequate heat supply is vital in Mongolia, which can experience extreme low temperatures of -40 degrees Celsius or below,” said ADB Principal Energy Specialist for East Asia Shannon Cowlin. “The project will not only improve air quality with significant impact to public health. It will also demonstrate the viability of renewable heating systems in Mongolia’s rural areas and build capacity among leaders and the community to reduce coal usage.”

Mongolia has taken steps to increase the share of renewable energy in its power supply. However, the majority of Mongolians still use coal as their main heat source, either through coal-fired plants, boilers, or household stoves. These methods have led to high levels of unhealthy air pollutants and greenhouse gas emissions.

The $2 million grant will support the design, procurement, and installation of more sustainable heating systems in the country. The project will focus on hospitals and health care centers in soum centers—Mongolian pasturelands—as they are critical for the community and have continuous heating and hot water requirements. The buildings will also be retrofitted with energy efficiency measures to reduce heating demand.

The project aims to spread awareness on the value of efficiency measures and cleaner heating systems, as well as ways to install and maintain them, among government officials and heating technicians.  The project will also train community members—in particular, women—on measures that can be adopted in residences to reduce residential coal use and associated emissions.

The project will be completed by 2025.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: Asian Development Bank