ADB backs Sunseap to build Cambodia's first large-scale solar PV plant

Solar energy is gaining momentum in Cambodia and other countries in Southeast Asia
Solar energy is gaining momentum in Cambodia and other countries in Southeast Asia

The Asian Development Bank (ADB, Manila, Philippines) has backed Singapore’s Sunseap Group’s project to build Cambodia’s first large-scale solar photovoltaic (PV) project under a long-term agreement with Electricité Du Cambodge (EDC).

The PV project is located near Bavet, a special economic zone in the Svay Rieng province, and is being implemented through a public-private partnership (PPP) arrangement.

As part of the project, Sunseap entered into a 20-year solar power purchase agreement (PPA) with EDC.

 

ADB will a debt financing package of USD 9.2 million

ADB’s Private Sector Operations Department (PSOD) will provide Sunseap Asset (Cambodia) with a debt financing package of USD 9.2 million.

The package includes co-financing from a private sector financial institution through ADB’s B Loan program and a concessional loan from the Canadian Climate Fund for the Private Sector in Asia (CFPS).

The CFPS loan was instrumental in assisting the sponsors to overcome some of the early mover risks and cost premiums associated with a first-of-its-kind project such as this.

This marks Sunseap’s third foray into the international market after developing projects in India and Malaysia.

 

The solar farm is expected to begin operations in August 2017. Once completed, it will have an installed capacity of 10 MW and be able to meet roughly a quarter of Bavet City’s local energy demand, half of which is currently being met through power imports from neighboring Viet Nam.

“We are honored to have received the support of ADB as we embark on this large-scale project. Cambodia is a fast-growing market with vast potential for solar development,” said Frank Phuan, Founder and Director of Sunseap Group.

 

 

 

 

 

 

 

 

2017-04-27 Courtesy:  Asian Development Bank| solarserver.com © Heindl Server GmbH

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