Shareholders of the Company include:                   

1.REE Energy Company Limited, a subsidiary of Refrigeration Electrical Engineering Corporation (REE),

2. Da Nhim-Ham Thuan-Da Mi Hydro Joint Stock Company,

3. Thac Mo Hydro Joint Stock Company, and

4. Power Engineering Consulting Joint Stock Company 3.

 The Phu Lac 2 and Loi Hai 2 projects are expected to cost (collectively) approximately $84 million, which would be funded by (i) a 12-year senior loan of up to $60 million from IFC’s own account and from mobilisation; and (ii) up to $24 million from the Company.

 The Phu Lac 2 project is located in Tuy Phong District, Binh Thuan province, and the Loi Hai 2 project is located in Thuan Bac District, Ninh Thuan province, both in Vietnam.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability, as it is expected to have limited adverse environmental or social risks and/ or impacts that are limited in scale, few in number, generally site-specific and readily addressed through mitigation measures, by adhering to good international industry practice (GIIP) procedures, guidelines and design criteria, as described in the following sections.

The key risks and impacts related to the Project include: (a) economic displacement of 35 Raglai ethnic minority land use rights owners in LH2 project who are considered indigenous peoples as per IFC Performance Standard 7 criteria and 39 Kinh ethnicity land use right owners in PL2 project; (b) potentially physical displacement of 38 agriculture field based structures individually belonging to members of Raglai ethnic minority community to meet noise and safety set back requirements in LH2 project (to be confirmed through detailed measurement survey); (c) potential shadow flicker impact on up to 180 structures/houses (from a total of 417 mapped receptors) in LH2 project and up to 642 structures/houses (from a total of 1550 mapped receptors) in PL2 project; (d) potential bird and bat mortality; and (e) other typical risks and impacts related to construction and operation of wind power projects.

Impacts from shadow flicker will be permanently prevented and/or mitigated through a hierarchical approach that will include curtailment during potential shadow flicker events and during the periods of implementation of mitigation alternatives which will be selected based on consultation and agreement with affected communities.

Risks to biodiversity from the Project are primarily concerning potential bird and bat mortality during windfarm operations. These risks will be managed through the development and implementation of a birds and bats adaptation management plan that will trigger mitigations (such as shut-down, blade feathering and changes in cut-in speed) on wind farm operations based on monitoring of bird and bat mortality. Transmission line design measures to reduce perching and optimize the location of wires will be included and bird diverters will be installed and maintained along the transmission line route to reduce risks of bird collisions.