ADB BRIEFSNO. 286JANUARY 2024ISBN 978-92-9270-587-9 (print)ISBN 978-92-9270-588-6 (electronic) ISSN 2071-7202 (print)ISSN 2218-2675 (electronic)Publication Stock No. BRF240005-2DOI: http://dx.doi.org/10.22617/BRF240005-2Measuring the Economic Impacts of a Wind Power Project in Viet NamNguyen Anh TuanIndependent Economic ConsultantViet NamManfred KieferPrincipal EconomistPrivate Sector Transaction Support DivisionPrivate Sector Operations DepartmentAsian Development Bank Christian AbeledaAssociate Economics OfficerPrivate Sector Transaction Support DivisionPrivate Sector Operations DepartmentAsian Development BankKEY POINTS• The findings of this study underscore the economic value addition of the Lotus Wind Power Project in Viet Nam. During its construction phase, the project created a total of 1,574 employments (measured as full-time equivalents or FTEs) and infused local economies with job earnings amounting to $29.13 million. Moreover, it contributed $89.6 million to the country’s gross domestic product.• In its operational and maintenance phase, the positive economic impacts of the project are estimated as 227 FTE permanent jobs, $4.4 million in earnings per year, and $9.5 million of annual economic value addition over the next 20 years. More than just statistical numbers, these benefits resonate with the communities affected, offering the promise of enhanced livelihoods and economic prosperity.• Similar investments in the sector may be considered in the future. A conducive investment environment must be created, and communities need to be able to benefit from investments and have a voice in the decision-making process. INTRODUCTIONThe Lotus Wind Power Project is the first financing of the Asian Development Bank (ADB) for a wind power initiative in Viet Nam. In 2021, ADB arranged and syndicated a $173 million financing package for the project, which has a total capacity of 144 megawatts (MW). The project includes three wind power farm projects—Lien Lap, Phong Huy, and Phong Nguyen (with 48 MW each)—constructed and operated by the PC1 Group Joint Stock Company (PC1 Group) and RENOVA Global Business Development Company. The Lotus project marks a significant advancement for the quickly developing wind power industry in Viet Nam and was the first wind power project that not only ADB but all the other participating lenders have financed in the country. The financing is certified as a Green Loan by the Climate Bonds Initiative. Construction took 18 months from May 2019 to October 2021. The wind farms were connected in September 2021 and started operating and delivering power to the national grid in October 2021. The authors extend their gratitude to the following offices and individuals for their valuable inputs and unwavering support: ADB Economic Research and Development Impact Department; Shantanu Chakraborty, Maria Patgeuana, and Nguyen Ba Hung of the ADB Vi...
