ACEN, through its subsidiary ACEN Renewables International Pte. Ltd., signed financing documents for the non-recourse project financing for its first venture in Lao PDR.
A 600 megawatts (MW) wind power facility with a project cost close to $1 billion will be pursued by Monsoon Wind, a partnership of ACEN, BCPG Public Co. Ltd., Impact Electrons Siam Ltd., Mitsubishi Corp. and SMP Consultation and STP&I Public Co. Ltd.
ACEN said the project is set to be the first wind power project in Lao PDR and will be co-financed by the Asian Development Bank as lead arranger, Asia Infrastructure Investment Bank, Japan International Corp. Agency, the Export-Import Bank of Thailand, Hong Kong Mortgage Corp. Ltd., Sumitomo Mitsui Banking Corp., Kasikornbank and Siam Commercial Bank.
ACEN will have 24 percent economic stake in the project.
Monsoon Wind will also construct, own and operate its 500 kilovolts transmission line in the Sekong and Attapeu in the southeastern provinces of the Lao PDR.
Under a 25-year power purchase agreement, the electricity generated by the project will be sold to Vietnam Electricity through the transmission line targeted to start commercial operations by end 2025.
Monsoon Wind said the project is one of the Vietnamese government’s key projects in its electricity development plan. The Lao government will benefit from the project through revenue from royalty fees and other sources based on the concession agreement.
