IES inks

Editorial staff

IES inks USD692 Million loan agreement for the iconic 600MW "Monsoon Wind Power Project" as the first wind project in Lao PDR, the largest renewable energy plant in Southeast Asia positioned as a key platform for regional connectivity and decarbonization

Impact Electrons Siam Limited (IES), Asia Pacific’s leading renewable energy solutions provider, as the developer of the Monsoon Wind Power Project (Monsoon Wind), signed USD692 Million financing documents for a non-recourse project financing for Monsoon Wind together with other shareholders among them are ACEN Renewables International Pte. Ltd., STP&I Public Company Limited and SMP Group. Customary CPs are expected to be satisfied shortly. Monsoon Wind will construct, own, and operate a 600MW wind power plant and its dedicated 500kV transmission line in the Sekong and Attapeu provinces located in southeastern provinces of the Lao PDR. Monsoon Wind is the first wind power project in Lao PDR and the first cross-border project in Southeast Asia. Under the 25-year power purchase agreement, the electricity generated will be sold to Vietnam Electricity (EVN) through the Project Company’s 500kV transmission line.

The project will be co-financed by the Asian Development Bank (ADB) as lead arranger, Asia Infrastructure Investment Bank (AIIB), Japan International Corporation Agency (JICA), the Export-Import Bank of Thailand (Thai EXIM), Sumitomo Mitsui Banking Corporation (SMBC), Hong Kong Mortgage Corporation Limited (HKMC), Kasikornbank, and Siam Commercial Bank.

Mr. Peck Khamkanist, CEO of IES, said, “As a pioneer of sustainable solutions, we are keen to be a part of the global fight against climate change by embarking on a green energy journey starting from our home region. Laos possesses natural resources for renewable energy generation. This project also shows the carbon credentials of Lao PDR. We are part of the journey to uplift the well-being and happiness of the local communities in which we operate.”

Monsoon Wind is one of the key projects in the Vietnamese government’s electricity development plan. The project will contribute to the strengthening of connectivity in the ASEAN region through the provision of cross-border electricity sales. The Lao government will benefit from the project in various ways such as receiving revenue in foreign currency from royalty fees and other sources based on the Concession Agreement. The project will also promote local employment during both the construction and operation periods. Furthermore, the sponsor's community and ethnic group development program will uplift people's livelihoods by targeting measures in the health, education, and economy sectors.

Mr. Nat Hutanuwatr, MD of Monsoon Wind, said “Under the 25-year Power Purchase Agreement of Vietnam Electricity and the Concession Agreement with the Government of Laos PDR, the 600MW Monsoon Wind Power will be the largest wind farm and the first of its kind to trade wind power across the border in the region. Monsoon Wind Power Company is very proud to represent all sponsors, to have a close collaboration with the lender group, and be able to execute the extra-ordinary non-recourse financing documents in such a short period of time.”

IES plans to expand an additional 1,000MW nearby the existing Monsoon Wind’s site. The project, including the expansion, has potential to offset over 50 million tons of carbon dioxide throughout its lifetime. Wind energy projects will diversify Lao PDR’s main source of renewable energy generation, hydropower, which is mainly generated during the wet season. By building and integrating renewable sources with complementary generation profiles, coupled with regional connectivity network, the combination can supply stable, clean, and affordable electricity to ASEAN nations throughout the year.