Viet Nam: Lotus Wind Power Project

Nonsovereign Project | 54211-001

Project Details

  • Project Officer
    Nath, Kiron
    Private Sector Operations Department
    Request for information
  • Country
    Viet Nam
  • Sector
    • Energy
Project Name Lotus Wind Power Project
Project Number 54211-001
Borrower/Company Lien Lap Wind Power Joint Stock Company
Phong Huy Wind Power Joint Stock Company
Phong Nguyen Wind Power Joint Stock Company
Country Viet Nam
Location Nation-wide
Type or Modality of Assistance
Loan Japan USD 8.26 million Committed
Loan Japan USD 8.26 million Committed
Loan Japan USD 8.48 million Committed
4053 Loan Ordinary capital resources USD 11.87 million Committed
4054 Loan Ordinary capital resources USD 11.57 million Committed
4055 Loan Ordinary capital resources USD 11.57 million Committed
CF96 B-Loan Other USD 27.47 million Committed
CF97 B-Loan Other USD 26.77 million Committed
CF98 B-Loan Other USD 26.77 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - wind

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Nath, Kiron
Project Sponsor(s) Power Construction Joint Stock Company No. 1
Renova Renewables Vietnam 1 Pte. Ltd
Description The proceeds will fund the construction and operation of three 48MW wind farms sponsored by the same local company in Quang Tri Province, Viet Nam.
Objectives and Scope

The Project entails the development, construction, operation and maintenance of three 48MW wind farms (144MW in total) and the ancillary facilities in Huong Hoa district, Quang Tri province in central Viet Nam, under a fixed-price, date-certain, turkey EPC arrangement with PCC1. Vestas will supply, deliver, install and maintain the wind turbines. The Project will be implemented under 20-year PPAs with EVN.

The Project will be one of the first and largest wind power projects financed by the private sector in Viet Nam and one of the first to have attracted international lenders. It is highly aligned with ADB's Strategy 2030 in supporting climate change mitigation and adaptation, and the Vietnamese government's Revised National Power Development Master Plan for the 2011-2020 Period with the vision to 2030 (Revised PDP 7) to promote renewable energy and specifically grow the country's wind power capacity to 2,000 MW by 2025 and 6,000 MW by 2030.

Status of Operation/Construction The project is expected to reach commercial operations by 1 November 2021.
Linkage to Country/Regional Strategy

The Project aligns with ADB's Energy Policy, which (i) aims to prioritize and broaden support for renewable energy projects and (ii) encourages private sector participation. The Project will contribute to the targets for wind generation capacity in Viet Nam's Revised PDP 7. Consistent with a "One

ADB" approach, the Project has benefited from close cross-departmental collaboration with ADB's Southeast Asia Department (SERD) in assessing and analyzing Viet Nam's energy sector.

Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The borrowers' E&S consultant has prepared initial E&S examination reports and an environmental compliance audit of existing construction activities for each wind farm. The project's transmission line is not considered an associated facility under the ADB SPS definition as this will be shared with neighboring wind farms. The E&S consultant undertook a critical habitat assessment and assessed all three wind farms as modified habitats. Affected households will retain the option to relocate should their decisions change during project operations. Impacts during construction and operation will be addressed through implementation of the E&S management plans and specific sub-plans. Periodic monitoring of physical and biological impacts and stakeholder consultations will be carried out by the borrowers. Adaptive management shall be employed when unforeseen terrestrial ecological risks are identified as a result of continuous monitoring activities.
Involuntary Resettlement The development of the three wind farms required acquisition of production forest and agricultural lands, conversion of portions of modified protection forest, and purchase and leasing of land from private users. The audit of the government-led land acquisition process and consultations with the affected persons confirmed that the process (i) was done in accordance with statutory requirements, where compensation payments and support meet ADB's SPS requirements on involuntary resettlement; (ii) ensured participation of the affected households in the inventory of losses and detailed measurement surveys; and (iii) provided avenues for the affected households to submit grievances.
Indigenous Peoples

Aside from land loss, Van Kieu ethnic minority communities are expected to experience limited adverse impacts because of an influx of laborers as well as safety, health, and security issues during construction and operation. The project did not result in commercialization of sociocultural and traditional beliefs of the Van Kieu or any natural resources located within customary land. The project will provide beneficial measures through employment opportunities and socioeconomic development. To address the adverse impacts, share benefits, and promote opportunities to all affected households and Van Kieu communities, livelihood restoration and ethnic minority development plans were prepared for Lien Lap and Phong Huy and an ethnic minority

development plan for Phong Nguyen.

Stakeholder Communication, Participation, and Consultation Meaningful consultations were conducted when preparing these plans and will continue during implementation.
Timetable for assistance design, processing and implementation
Concept Clearance 12 May 2020
Credit Committee Meeting 27 Jan 2021
Approval 24 Mar 2021
Last PDS Update 14 Oct 2021

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
Lotus Wind Power Project: Gender Action Plan Gender Action Plans Feb 2021
Lotus Wind Power Project: Report and Recommendation of the President Reports and Recommendations of the President Feb 2021
Lotus Wind Power Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jan 2021

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
Lotus Wind Power Project: Lien Lap Wind Power Project Addendum to the Combined Resettlement and Indigenous Peoples Plan Combined Resettlement Plan and Indigenous Peoples Plans Sep 2021
Lotus Wind Power Project: Lien Lap, Phong Huy, and Phong Nguyen Wind Power Projects - Operation Environmental Management Plan Environmental Management Plans Aug 2021
Lotus Wind Power Project: Lien Lap, Phong Huy, and Phong Nguyen Wind Power Projects - Stakeholder Engagement Plan Environmental Management Plan Environmental Management Plans Jul 2021
Lotus Wind Power Project: Lien Lap, Phong Huy, and Phong Nguyen Wind Power Projects - Construction Environmental Management Plan Environmental Management Plans Jun 2021
Lotus Wind Power Project: Lien Lap, Phong Huy, and Phong Nguyen Wind Power Projects - Construction and Operation Environmental Management Plan Environmental Management Plans Jun 2021
Lotus Wind Power Project: Biodiversity Management Plan - Phong Nguyen Wind Farm Project Environmental Management Plan Environmental Management Plans Jun 2021
Lotus Wind Power Project: Biodiversity Management Plan - Phong Huy Wind Power Project Environmental Management Plan Environmental Management Plans Jun 2021
Lotus Wind Power Project: Lien Lap Wind Power Project Updated Initial Environmental Examination Initial Environmental Examination Jun 2021
Lotus Wind Power Project: Phong Huy Wind Power Project Updated Initial Environmental Examination Initial Environmental Examination May 2021
Lotus Wind Power Project: Phong Nguyen Wind Farm Project Updated Initial Environmental Examination Initial Environmental Examination May 2021
Lotus Wind Power Project: Phong Huy Wind Power Project Initial Environmental Examination Initial Environmental Examination Mar 2021
Lotus Wind Power Project: Lien Lap Wind Farm Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Mar 2021
Lotus Wind Power Project: Phong Huy Wind Farm Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Mar 2021
Lotus Wind Power Project: Phong Nguyen Wind Farm Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Mar 2021
Lotus Wind Power Project: Phong Nguyen Wind Farm Project Initial Environmental Examination Initial Environmental Examination Mar 2021
Lotus Wind Power Project: Lien Lap Wind Power Project Initial Environmental Examination Initial Environmental Examination Mar 2021
Lotus Wind Power Project: Phong Nguyen Wind Power Ethnic Minority Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jan 2021
Lotus Wind Power Project: Lien Lap Wind Power Livelihood Restoration and Ethnic Minority Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jan 2021
Lotus Wind Power Project: Lien Lap, Phong Huy and Phong Nguyen Wind Power Projects Land Acquisition Audit Report Social Compliance Audit Report Jan 2021
Lotus Wind Power Project: Phong Huy Wind Power Combined Resettlement and Indigenous Peoples Plan Combined Resettlement Plan and Indigenous Peoples Plans Jan 2021

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.

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