The project supports the borrower, Phu Yen Joint Stock Company, to operate a 257-megawatt (MW) solar photovoltaic power plant and its associated facilities in Phu Yen Province, Viet Nam. The Asian Development Bank (ADB) financing will meet the borrower's requirements for longer-tenor United States (US) dollar-denominated project financing, which local financial institutions are unable to provide.
| Project Name | B.Grimm Viet Nam Solar Power Project (Phu Yen Project) | |||||||||||||||
| Project Number | 53270-001 | |||||||||||||||
| Borrower/Company | Phu Yen TTP Joint Stock Company |
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| Country | Viet Nam |
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| Location | Phu Yen District | |||||||||||||||
| Type or Modality of Assistance |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Partnerships Private sector development |
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| Sector / Subsector | Energy / Renewable energy generation - solar |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | |||||||||||||||
| Responsible ADB Department | Private Sector Operations Department | |||||||||||||||
| Responsible ADB Division | Infrastructure Finance Division 2 | |||||||||||||||
| Responsible ADB Officer | Hashizume, Shuji | |||||||||||||||
| Project Sponsor(s) | ||||||||||||||||
| Description | The project supports the borrower, Phu Yen Joint Stock Company, to operate a 257-megawatt (MW) solar photovoltaic power plant and its associated facilities in Phu Yen Province, Viet Nam. The Asian Development Bank (ADB) financing will meet the borrower's requirements for longer-tenor United States (US) dollar-denominated project financing, which local financial institutions are unable to provide. | |||||||||||||||
| Objectives and Scope | The project entails the construction and operation of a 257 MW solar photovoltaic power plant and its associated facilities in Phu Yen Province, Vietnam. | |||||||||||||||
| Status of Development Objectives | The borrower will report on key performance indicators, including the outcome and outputs indicators identified in the design and monitoring framework. | |||||||||||||||
| Status of Operation/Construction | The project has already reach Commercial Operation Date in June 2019. | |||||||||||||||
| Linkage to Country/Regional Strategy | The project is consistent with ADB's Strategy 2030, which outlines seven operational priorities to address development challenges in Asia and the Pacific. It supports two of those priorities: (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; and (ii) addressing remaining poverty and reducing inequality. It also supports Strategy 2030's objectives to expand the role of private sector operations and mobilize additional resources on top of ADB's own financing. The project aligns with ADB's Energy Policy, which supports wider access to energy through investments in energy efficiency and renewable energy projects. It will contribute to ADB's target of $6 billion in annual financing for climate mitigation and adaptation by 2020. |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | B |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | An environmental and social compliance audit was conducted by an independent consultant to assess the project's performance against ADB's Safeguard Policy Statement requirements. The project's environmental impact assessment report was prepared in compliance with Vietnamese regulations and approved by the chair of the Provincial People's Committee in July 2018. The potential impacts from the project have been identified and effective measures to avoid and mitigate the adverse impacts are in the in the safeguard reports and plans. The borrower has agreed to implement corrective actions to address the gaps observed during the audit before the loan drawdown. |
| Involuntary Resettlement | An independent third party undertook an audit of the land transfer and its impact on existing users. As mitigation measures for potential residual impacts and in accordance with the audit recommendation, a livelihood restoration plan (LRP) will be prepared and implemented for the affected, vulnerable, willing and suitable families, and a project level grievance redress mechanism will be developed to receive and address potential concerns of the project-affected people by the borrower. The LRP will build on the livelihood support already provided to affected households to address the long-term impact of land and livelihood losses. The LRP will include an assessment of affected households' socioeconomic condition and the provision of opportunities for skills building and alternative livelihoods to ensure the restoration of sustenance and livelihood status to at least pre-project levels. |
| Indigenous Peoples | The land acquisition included a communal lot used as a graveyard of the Cham Hoi Roi ethnic group. A total of 18 graves owned by 16 Cham households were transferred to adjoining land parcels next to the site boundary. The audit confirmed that the graveyard was relocated in accordance with the sociocultural norms and practices of the Cham people. The project will (i) continue to engage with the ethnic group in a culturally appropriate manner, and (ii) provide economic opportunities (as part of the larger livelihood restoration measures) for socioeconomic development to willing and qualified households of this group of ethnic minorities. |
| Stakeholder Communication, Participation, and Consultation | The communities surrounding the solar power plant, especially the poor and the vulnerable, will benefit from employment opportunities, livelihood prospects, and community development projects implemented by the Hoa Hoi Commune and the company in relation to the project. The borrower engaged with various stakeholders in the establishment of the project. During the preparation of the environmental assessment, the local government offices, especially at the commune level, were consulted as well as the local communities affected by the establishment of the solar farm and its associated facilities. Integral to the land rights acquisition process were the consultations and negotiations with affected households undertaken by the District Land Fund Development Center and organized by concerned village communes. |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | 29 Oct 2019 |
| Credit Committee Meeting | 28 Feb 2020 |
| Approval | 08 Apr 2020 |
| Last PDS Update | 20 Apr 2020 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| B.Grimm Viet Nam Solar Project | Documents Produced Under Grant/Loans/TA | Jan 2021 |
| B.Grimm Viet Nam Solar Power Project (Phu Yen Project): Report and Recommendation of the President | Reports and Recommendations of the President | Mar 2020 |
| B.Grimm Viet Nam Solar Power Project (Phu Yen Project): Gender Action Plan | Gender Action Plans | Mar 2020 |
| B.Grimm Viet Nam Solar Power Project (Phu Yen Project): Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jan 2020 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
| Title | Document Type | Document Date |
|---|---|---|
| B.Grimm Viet Nam Solar Power Project (Phu Yen Project): Livelihood Restoration Plan | Resettlement Plans | Nov 2020 |
| B.Grimm Viet Nam Solar Power Project (Phu Yen Project): Environmental and Social Compliance Audit | Environment and Social Compliance Audit Reports | Mar 2020 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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ADB, PHU YEN JSC Sign Viet Nam’s First Certified Green Loan for 257 MW Solar Power Project
The Asian Development Bank (ADB) and Phu Yen TTP Joint Stock Company (Phu Yen JSC) today signed a $186 million loan for the development and operation of a 257 megawatt (MW) solar power plant in Hoa Hoi, Phu Yen Province, Viet Nam,...