PHNOM PENH, CAMBODIA (27 June 2017) — The Asian Development Bank (ADB) is supporting Electricite Du Cambodge (EDC) in setting up a national solar park program to exploit Cambodia’s abundant solar resources. A transaction advisory agreement was signed yesterday by Ryuichi Kaga, Head of ADB's Office of Public-Private Partnership, and Keo Rottanak, the Royal Government of Cambodia Delegate in Charge of Managing EDC.
“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,” said Mr. Kaga. “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.”
The 100 megawatt (MW) solar power park program will be implemented in two phases, the first phase is around 30 MW to be followed by a second phase of 70 MW. 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 organize a competitive tender process to select a suitable private sector sponsor for the power generation. ADB is expected to provide concessional funds to EDC for the common infrastructure of the solar park, including climate finance from the Climate Investment Funds administered by ADB. This project will also help in developing a template for solar PPPs in Cambodia and, potentially, in other parts of neighboring Southeast Asia.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.