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The Asian Development Bank (ADB) has provided TTC Energy Development Investment with a $37.8 million loan deal to accelerate the deployment of solar energy in Vietnam.

TTC Energy is a subsidiary of Thailand’s largest utility GED.

The loan will be used to fund the Gulf Solar Power Project which includes the development and operation of a 50MW solar plant in Tay Ninh Province.

The project will power consumers in Ho Chi Minh City and reduce annual carbon emissions by 29,760 by 2020.

Vietnam has set a goal to increase hydropower, solar, wind and biomass energy capacity by 21% by 2030 and to reduce greenhouse gas emissions by up to 25% by 2030.

The loan is divided into two, an $11.3 million A loan, an $18.9 million B loan and an additional $7.6 provided by Leading Asia’s Private Infrastructure Fund, which is supported by the Japan International Cooperation Agency. T

The B loan will be funded by Bangkok Bank PCL, Siam Commercial Bank PCL, and Standard Chartered Bank (Thai) PCL.

“ADB is excited about this transaction because the project will have a significant impact on the sustainability and security of Viet Nam’s energy sector for years to come,” said the Director of Infrastructure Finance Division of ADB’s Private Sector Operations Department Mr. Jackie B. Surtani. “Apart from providing much-needed financing to develop solar power in Viet Nam, the project will also help reduce perceived risks in the country’s renewable energy sector.”