Thailand: PROVINCIAL SOLAR POWER PROJECT

Nonsovereign Project | 45923-014

Summary

The Project was developed and implemented over two phases (Phase 2A [Chaiyaphum] and Phase 2B [Ayutthaya]) under 4 standard renewable energy PPAs (25 MW for each site) with PEA in Chaiyaphum and Ayutthaya Provinces. The Project has a total capacity of 50 MW installed gross capacity and utilizes multicrystalline photovoltaic technology. Any additional generation from the Project beyond the PPA contract capacity will be distributed to the grid free of charge as an economic benefit for the country. The Project was developed under a separate engineering, procurement, construction (EPC) arrangements for each phase.

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Project Name PROVINCIAL SOLAR POWER PROJECT
Project Number 45923-014
Borrower/Company BANGCHAK SOLAR ENERGY COMPANY LTD
BANGCHAK SOLAR CTF
Country Thailand
Location Chaiyaphum and Ayutthaya Provinces
Approval Number 7356/2875, 7356/8256
Type or Modality of Assistance
7356 Loan THB 0.00 Committed
7356/8256 Loan USD 15.00 million Committed
Strategic Agendas
Drivers of Change
Sector / Subsector Energy - Renewable energy generation - solar
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Jose Manuel Limjap
Project Sponsor(s) BANGCHAK PETROLEUM PUBLIC COMPANY
Description The Project was developed and implemented over two phases (Phase 2A [Chaiyaphum] and Phase 2B [Ayutthaya]) under 4 standard renewable energy PPAs (25 MW for each site) with PEA in Chaiyaphum and Ayutthaya Provinces. The Project has a total capacity of 50 MW installed gross capacity and utilizes multicrystalline photovoltaic technology. Any additional generation from the Project beyond the PPA contract capacity will be distributed to the grid free of charge as an economic benefit for the country. The Project was developed under a separate engineering, procurement, construction (EPC) arrangements for each phase.
Objectives and Scope The Project diversifies Thailand's energy mix through the addition of renewable energy capacity; demonstrates the viability and sustainability of a large-scale private sector solar project; and has installed and is operating 2 large-scale solar power generating facilities with a combined capacity of 50 MW.
Linkage to Country/Regional Strategy The country partnership strategy for Thailand 2007 2011 is directed at three core strategic areas infrastructure, environmental sustainability, and capital markets. The government's Alternative Energy Development Plan, approved by the Cabinet on 28 January 2009, notes the immense potential energy in Thailand's solar radiation and the savings on energy imports that can be made through its use, with private sector investment. The Project also supports the Government's long-term objective for the Thailand Clean Technology Fund Investment Plan to utilize CTF resources to support private sector renewable energy projects.
Status of Development Objectives The target of having at least 32 MW of solar power capacity commissioned by the first quarter of 2013 has been achieved. The project has generated employment of over 100 people (full time equivalent). To add to local economic activity, the project purchased local purchase of goods and services amounting to over B1,000 million from the construction of phases 2A and 2B.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects In compliance with ADB's Safeguard Policy Statement (2009), the Project is classified as category B for environment, category C for involuntary resettlement, and category C for indigenous peoples. The potential environmental and social impacts of the project have been identified and effective measures to avoid, minimize, mitigate, and compensate for the adverse impacts are incorporated in the Initial Environmental Examination (IEE) reports prepared for Project Phase 2A and Phase 2B. The institutional capacity and commitment of BSE to manage the project's social and environmental impacts are deemed adequate and are described in the Environmental Management Plan included in the IEE reports. On gender classification, the Project has been assigned a no gender element' category.
Involuntary Resettlement No involuntary resettlement expected.
Indigenous Peoples No indigenous peoples affected.
Stakeholder Communication, Participation, and Consultation Several public hearing and information dissemination activities were carried out involving different stakeholders to ensure public participation. Such activities were confirmed during the due diligence site visit and were found to be in accordance with ADB's requirements.
Timetable for assistance design, processing and implementation
Concept Clearance 14 Nov 2011
Due Diligence 23 Mar 2012
Credit Committee Meeting 30 Apr 2012
Approval 25 Jun 2012
PDS Creation Date 17 Apr 2012
Last PDS Update 09 Oct 2014

Evaluation Documents

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