ADB green projects gain $300 mn
The Green Climate Fund (GCF) has granted $300 million to the Asian Development Bank (ADB) to assist in creating environmentally friendly infrastructure projects that aim to help economies in the region recover sustainably and create jobs.
The ADB said the funds will be utilised by the ASEAN Catalytic Green Finance Facility’s (ACGF) Green Recovery Programme to support green infrastructure projects in ASEAN member nations, specifically in Cambodia, Indonesia, Laos and the Philippines.
“The ACGF Green Recovery Programme is designed to kick-start a cycle of low-emission investments during the first years of a COVID-19 recovery,” said ADB Vice-President Ahmed M. Saeed.
“The programme will help Southeast Asian countries design green stimulus packages and projects that will create climate-friendly jobs, boost economic growth and help countries fulfill their pledges under the Paris Agreement to reduce greenhouse gas emissions.”
One of the programme’s goals is to help shore up the region’s investment needs for green infrastructure that before the pandemic were estimated at $210 billion annually.
ADB said that number has likely increased because of the regional economy shrinking by 4.4 percent in 2020.
In Cambodia, the ACGF helped to plan the development and bidding process for the Cambodia National Solar Park Project in 2019.
Ministry of Mines and Energy Director-General Victor Jona said Thai-owned renewable energy company Prime Road Power Co won the first stage of bidding for the completion of a 60 mW solar power plant, which is part of the National Solar Project and will be financed by the ADB via a concession loan.
He added that bidding for the second stage – a 40 mW solar project – opened in mid-February this year and is still ongoing. He confirmed that ADB is financing the project, which is being monitored by Electricite du Cambodge (EDC).
Jona said: “We thank ADB for supporting green power in Cambodia. With the participation of the private sector, they (ADB) have been involved in the investment in a number of solar farms, hydropower and biomass projects.”
He also said that EDC, the state utility, is negotiating the development of another 80 mW-capacity wind farm.
Earlier this month, Jona announced the completion of three separate solar-generated power stations: the 30 mW plant in Banteay Meanchey province invested in by Ray Power Supply Co Ltd, the 60mW solar farm in Battambang province owned by Risen Energy Co Ltd and the 60mW solar station in Pursat province, owned by Schneitec Renewable Co Ltd.
Said Nick Beresford, UNDP resident representative in Cambodia, “Businesses in Cambodia often face higher costs of capital, so ADB’s very welcome fund for green investments can be a major help in creating a cleaner and greener economy.
These loans can help stimulate further investment in on-grid solar energy. With the right changes to regulations, the funds could also significantly increase rooftop solar power – which has great potential here in Cambodia.
Another smart and green investment sector would be in encouraging energy-efficient equipment and appliances”
The ACGF was created in April 2019 to support green infrastructure investments in Southeast Asia.
The ADB said: “The ACGF provides ASEAN member governments with technical assistance and access to more than $1.4 billion in loans from the ASEAN Infrastructure Fund and co-financing partners: ADB, Agence Francaise de Development, the ASEAN Infrastructure Fund, the European Investment Bank, the European Union, KfW and the Republic of Korea.”