The Asian Development Bank (ADB) has agreed to financially support a 100MW national solar park program to be developed by Electricite Du Cambodge (EDC) in Cambodia.
According to ADB, the solar power park program which is expected to tap the abundant solar resources in the country will be executed in two phases. While the first phase will see commissioning of about 30MW capacity, a second phase will see the remainder 70MW brought online.
ADB is likely to offer concessional funds to EDC which will used to construct the common infrastructure of the solar park. The funds will also include climate finance from the ADB-administered Climate Investment Funds.
As per the Manila-based ADB, the solar park project will also help in developing a template for solar public-private partnerships (PPPs) in Cambodia and, possibly, in other countries in neighboring Southeast Asia.
Under its advisory mandate, ADB’s Office of Public-Private Partnership will create a feasibility study for the project. It will also develop a PPP structure that can be bankable and also undertake a competitive tender process to select an appropriate private sector sponsor for the electricity generation.
ADB Office of Public-Private Partnership head Ryuichi Kaga said: “Cambodia is blessed with excellent solar irradiation and this program will help Cambodia bring renewable, affordable, and indigenously-sourced power to meet its growing energy needs.
“ADB will be advising on the structuring of a national solar park program and a competitive process of procuring power, which is expected to drive solar power prices lower and bring access to affordable power to its people.”