ADB approves Cambodian solar project loan
ADB approved a financing package of up to $16.4 million to finance the construction of Thailand-based energy producer Prime Road Alternative’s 60MW Chhnang solar power project in Cambodia last week. Financial close is expected in Q2.
The project, which marks the first phase of the 100MW National Solar Park project and has an estimated total cost of $41 million, was tendered out in February 2019 by state-owned utility company Electricite du Cambodge (EDC). Prime Road emerged as the successful bidder, with the lowest bid tariff price at $0.03877 per kWh, and has scheduled commercial operation for June 2022.
The approved loans include: a $4.1 million – Japan loan; a $4.2 million – Canadian Climate Fund for the private sector in Asia II loan; and $4.8 million – ADB loan. ADB has also proposed a $3.3 million B-loan. Originally the IFC had planned to invest up to $8 million into the project, with $4 million from its own account and $4 million from the Canada Blended Climate Finance Program.
ADB in May 2019 approved a financing package to help EDC in developing the 100MW national solar power park project. The financing package comprises: a $7.64 million – ADB loan; $11 million – Strategic Climate Fund (SCF) loan; $3 million – SCF grant; and $500,000 from a technical assistance grant by South Korea e-Asia and Knowledge Partnership Fund
Other companies involved include, ADB (government’s transaction adviser), Freshfields (international legal counsel), DFDL (local legal counsel), Suntrace-Juru Energy consortium (technical adviser), Synergy Consulting (PPP and financial adviser), Newjec and Cheang Engineering Consultants (project implementation consultant) and Jinko Solar (solar panel supplier).
