REE Wind Power 2

completed

 The proposed investment is an IFC A loan and mobilization of up to US$60 million to Thuan Binh Wind Power Joint Stock Company (TBW or the Company), the proceeds of which will fund the construction of two wind power projects in Vietnam with total capacity of 54.2 megawatt (MW), namely (a) the 25.2MW Phu Lac 2 (PL2 project) project located in Binh Thuan province; and (b) the 29MW Loi Hai 2 (LH2 project) project located in Ninh Thuan province (collectively the Project). TBW was formed in 2009 as an SOE but was subsequently privatized and has currently four shareholders: REE Energy the majority shareholder; Da Nhim-Ham Thuan-Da Mi Hydro Joint Stock Company (DHD); Thac Mo Hydro Joint Stock Company (TMH); and Power Engineering Consulting Joint Stock Company 3 (PECC 3). The PL2 project will have an installed capacity of 25.2 MW with six turbines situated in Phu Lac commune, Tuy Phong district, Binh Thuan province. The PL2 project is an extension of TBW’s existing operational Phu Lac 1 project that has an installed capacity of 24MW and 12 turbines, that has been operating since September 2016. Key components of PL2 project include: six (06) wind turbine towers, with hub height of 125m; six (06) wind turbine generators (WTG), capacity of 4.2 MW each with a rotor diameter of 150m; 7.8km long 22kV underground cable and 02 outgoing feeders; a 22/110kV step-up substation with capacity of 40MVA; 7.34 km long 110kV single-circuit transmission line to connect to the grid at 110kV Phong Phu substation; control system, communication & SCADA; 6km internal access roads; and administration cum control room building (shared with the Phu Lac 1 wind farm). The total land footprint of PL2 project is 8.8ha. In addition, 10.9 ha will be subject to land use restrictions within the right-of-way (ROW) of the 110 kV transmission line for safety reasons.  PL2 project is located in an area such that national highway 1A is 200m on its east; Phong Phu commune adjoins the project area on its west; national highway 1A is 200 m south and the area borders Binh Thanh commune; and on the north, the project area is adjacent to Kalon Song Mao Mountains and the national North-South railway. LH2 project will have an installed capacity of 29.2MW with seven turbines situated in Loi Hai commune, Thuan Bac district, Ninh Thuan province. Key components of LH2 project include: seven (07) wind turbine towers with hub height of 125m; seven (07) wind turbines, capacity of 4.2MW each with rotor diameter of 150m; construction yard; a booster transformer station 22/110kV; 25m  overhead double circuit transmission line 110kV for connection to the existing 110 kV Thap Cham 2 - Cam Ranh substation transmission line; 768m single circuit 22kV overhead transmission line to source construction power from existing Ninh Hai line; control system, communication & SCADA; 5km underground cables of 22kV and outgoing feeders; 6km internal and external access roads; and administration cum control room building. The total land footprint of LH2 project is 7.6ha. LH2 project is located in an area such that it borders Suoi Vang Village, Cong Hai Commune in the north; is adjacent to the protected forest of Song Trau in the west; is near the North-South railway and National Highway 1A on the east; and borders Ba Rau 1 and Ba Rau 2 Villages, Loi Hai Commune on the south. The EPC contractors for the PL2 and LH2 projects are Vestas Wind Technology Vietnam LLC & Vestas Wind Asis Pacific A/S for the WTG, Central Construction Joint Stock Company for the civil works (incl. WTG foundations) and Power Engineering Consulting Joint Stock Company No 1 (Phu Lac 2) and Ocean Industry Corporation (Loi Hai 2) for electrical works. It is expected that construction of main plant components (wind turbines, sub-station etc.) will commence from March 2021. Construction is expected to last about 8 months for both projects.