Mitsubishi Signs $692 Million Loan Agreement for Laos Wind Project

Mitsubishi Corporation has announced that it has signed a $692 million financing package for the Monsoon cross-border wind power project in Laos with the Asian Development Bank, Japan International Cooperation Agency, Sumitomo Mitsui Banking Corporation, and other lenders. This has been done with other project sponsors. Mitsubishi had previously announced that it was involved in the project via investment through its wholly owned subsidiary Diamond Generating Asia, Limited.

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The official statement of Mitsubishi said that once the wind farm has been constructed, it will sell electricity to Vietnam’s state-owned electric power company (Vietnam Electricity) under a 25-year power purchase agreement.

The Monsoon Wind Power Project is situated in southern Laos, and when completed it be the largest installed capacity of any wind farm in Southeast Asia. Mitsubishi said that in addition to being the first cross-border renewable energy project in the ASEAN region, it will play a central role in the plan shared by the governments of Vietnam and Laos to transmit 5,000 MW of electricity from Laos to Vietnam by 2030.

The wind farms will come up in Sekong and Attapeu provinces. The total installed capacity, as per Mitsubishi, of the wind project will be 600 MW. The construction is slated for commencement in 2023, with operations to commence in 2025.

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As per Mitsubishi, Vietnam is working to balance its climate actions with measures to ease energy constraints. The Vietnamese Government has made increasing the use of wind and other renewables part of its 8th national power development plan, which is under preparation.

By partnering on this project, Laos will secure more foreign capital that will aid the country’s economic growth and development. Furthermore, in strengthening cross-border power-transmission infrastructure, the Monsoon project should help to raise the average standard of living in Laos, said Mitsubishi.

The latest management plan of Mitsubishi - “Midterm Corporate Strategy 2024 – Creating MC Shared Value” - outlines its intention to promote both digital and energy transformations that can leverage renewables to build new, carbon-neutral industries.