Cambodians will soon have access to more affordable power if the agreement signed on Monday between Electricite Du Cambodge (EDC) and the Asian Development Bank (ADB) to set up a 100 megawatt national solar park programme goes according to plan.
“Cambodia is blessed with excellent solar irradiation and this programme will help Cambodia bring renewable, affordable, and indigenously-sourced power to meet its growing energy needs,” said Ryuichi Kaga, head of ADB’s office of public-private partnership.
“ADB will be advising on the structuring of a national solar park programme and a competitive process of procuring power, which is expected to drive solar power prices lower and bring access to affordable power to Cambodians,” added Kaga.
According to an ADB press release, the 100MW solar power park programme will be implemented in two phases. The first phase is around 30MW to be followed by a second phase of 70MW.
“As part of its advisory mandate, ADB’s office of public-private partnership will develop a feasibility study for the project, develop a bankable PPP structure, and organise a competitive tender process to select a suitable private sector sponsor for the power generation,” stated the press release.
ADB is expected to provide concessional funds to EDC for the common infrastructure of the solar park. “This project will also help in developing a template for solar PPPs in Cambodia and, potentially, in other parts of neighbouring Southeast Asia,” said the bank.
ADB is also financially backing Singapore’s Sunseap Group’s project to build a large-scale solar power project under a long-term agreement with the EDC. ADB has provided Sunseap Asset (Cambodia) with a debt financing package of $9.2 million.
The package includes co-financing from a private sector financial institution and a concessional loan from the Canadian Climate Fund for the Private Sector in Asia.