Asian Development Bank Revealed That It Has Backed Singapore’s New Project


The Asian Development Bank has revealed that it has backed Singapore’s Sunseap Group’s new project. The project involves building the first large scale solar power project in Cambodia which is under a long term agreement with the Electricité Du Cambodge.

The Private Sector Operations Department of the Asian Development Bank will be providing Sunseap Asset with a debt financing package that amounts to US$9.2 million. This finance package will include co-financing that will come from a private sector financial institution through ADB’s B Loan program as well as a concessional loan that has come from the Canadian Climate Fund for the Privet Sector in Asia.

The new solar farm is expected to begin operations in August this year and once it is completed, the farm will have the capacity of 10 megawatts and it is thought that is will be able to meet around a quarter of the Bavet City’s local energy demand. Half of this power demand is being met by power imports from their neighbour Viet Nam. It is thought that the solar farm will also help reduce greenhouse gas emissions by the equivalent of 5,500 tons of carbon dioxide each year. This project will also mean that the power supply to more rural areas will be more reliable.

The electricity consumption in Cambodia has increased significantly over the past few years although it is thought that almost half of the country’s population currently doesn’t have access to stable and affordable electricity. The electrification rate in Cambodia has increased to 55% in 2015, which is up from 20% in 2007. However, the electricity tariffs in Cambodia are higher than those in neighboring countries because of their use of fossil fuels to generate power. Therefore, this new solar farm will help make electricity in the country more affordable as well as improve the power supply.


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BDC 303 Apr 2023