Technical assistance program: Sustainable use of natural resources and energy finance (SUNREF)

On 26th May 2021, BIDV and the French Development Agency (AFD) signed a credit facility agreement of USD 100 million aiming at promoting green investments, focused on renewable energy and energy efficiency projects in Vietnam. The TA program aims to contribute to the development of local economies, sober in energy consumption, carbon emission and sustainable use of natural resources, and assist BIDV, one of the major financial institutions in Vietnam, in enhancing its environmental and social (E&S) risks management system toward international standards.

Main activities of the project

• To transfer knowledge and build capacities of BIDV on E&S risk assessment and the Environmental and Social Management System (ESMS), with a focus on renewable energy and energy efficiency;
• To galvanize green projects by identifying potential green projects in emerging sectors (e.g. wind power, rooftop solar power, energy efficiency in building, etc.) and support the private sector in the development and conception of projects;
• To promote green investments, in renewable energy, industrial enterprises, buildings and properties development, tertiary sectors (trade, offices) and households; and
• Efficient and fluid management of the project to maximize impacts.

Activities in 2021

• Fulfilled environmental and social assessment based on AFD’s eligible, general, and E&S criteria, in which 3 projects (Cuu An, Lac Hoa 1 and Soc Trang 7) were approved by AFD for disbursement. The fourth project (Ben Tre V1-3) needs further investigation into potential impacts on bird and bat fauna;
• Fulfilled training needs interview and training planning includes two main modules: (i) Evaluation and monitoring of E&S aspects of subprojects; and (ii) Sustainable Energy Financing and Project Finance;
• Reviewed BIDV’s existing ESMS applicable to proposed loan projects; and
• Periodical monitoring and reporting on the progress of activities and subprojects.

Next steps

• To conduct collaborative research on bird and bat fauna in the project affected area to propose solutions to minimize impacts. The expected time is from April – December 2022;
• To propose upgrading the ESMS to meet international standards;
• To conduct training according to the agreed contents during the period from 3-5/2022;
• To monitor the impact of funded projects; and
• To support the development of communication products about the SUNREF program.