The project entails a corporate loan with a 3-year tenor to support the ongoing renewable energy and sustainable transport activities of Energy Absolute Public Company Limited (Energy Absolute). The loan is expected to be the first green loan in Thailand certified by the Climate Bonds Initiative and only the second in Asia. The assistance of the Asian Development Bank (ADB) will support Thailand's renewable energy sector, increase awareness about green loans, and support the transition from a conventional automotive industry to an electric vehicle industry in Thailand by establishing a comprehensive EVCN across Thailand's major cities. ADB's assistance will also support a leading clean energy and sustainable transport company in Thailand at a time when capital markets are still adjusting to the ongoing disruptions caused by the coronavirus disease (COVID-19) pandemic.
|Project Name||Green Loan for Renewable Energy and Electric Vehicle Charging Network|
|Borrower/Company||Energy Absolute Public Company Limited
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Energy / Renewable energy generation - solar - Renewable energy generation - wind
Transport / Road transport (non-urban)
|Gender Equity and Mainstreaming||Some gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Pascual, Francis Mark A.|
|Description||The project entails a corporate loan with a 3-year tenor to support the ongoing renewable energy and sustainable transport activities of Energy Absolute Public Company Limited (Energy Absolute). The loan is expected to be the first green loan in Thailand certified by the Climate Bonds Initiative and only the second in Asia. The assistance of the Asian Development Bank (ADB) will support Thailand's renewable energy sector, increase awareness about green loans, and support the transition from a conventional automotive industry to an electric vehicle industry in Thailand by establishing a comprehensive EVCN across Thailand's major cities. ADB's assistance will also support a leading clean energy and sustainable transport company in Thailand at a time when capital markets are still adjusting to the ongoing disruptions caused by the coronavirus disease (COVID-19) pandemic.|
|Objectives and Scope||The project supports a B1,500,000,000 corporate loan which will be used to finance two of Energy Absolute's operating solar and wind projects in Thailand (the Nakornsawan Solar Power Project and the Hanuman Wind Power Project), as well as Energy Absolute's ongoing investment in a comprehensive electric vehicle charging network in Thailand.|
|Status of Development Objectives||The project's outcome is sustainable funding of business expansion and continuity of Energy Absolute's clean energy investments enabled. This includes a green loan certified as a climate loan by the Climate Bonds Initiative, underscoring the company's commitment to sustainability.|
|Status of Operation/Construction||Target completion in 2022.|
|Linkage to Country/Regional Strategy||The project is consistent with ADB's Strategy 2030, which targets that 75% of ADB operations should support climate change mitigation and adaptation by 2030, and that ADB assistance for climate finance total $80 billion during 2019-2030. ADB's Strategy 2030 also promotes the expansion of private sector operations into sustainable transport and urban transport. ADB's support for the project is also in line with its country partnership strategy (2013-2016) and country operations business plan (2020-2022) for Thailand, which promote private sector development, infrastructure development, and environmentally sustainable development. The proposed project also aligns with the forthcoming country partnership strategy 2021-2025 for Thailand, which will emphasize sustainable and resilient growth, and the role of non-sovereign operations. The project is consistent with ADB's Energy Policy, which supports wider access to energy through investments in energy efficiency and renewable energy projects.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is processed as general corporate finance, with proceeds earmarked to the operational 90MW Nakornsawan solar project, 260MW Hanuman wind project, and expansion of electric vehicle charging network in Thailand. The project is classified as category B for environment based on the most sensitive component of the project which are the wind and solar subprojects. The EV charging network is expected to have minimal environmental impacts. Corporate ESMS audit and subproject environmental and social compliance audit were undertaken by qualified and experienced expert in compliance with SPS requirements. The corrective action plan of the audit report was addressed by EA, including preparation of an ADB-compliant Environmental and Social Management System prior to first disbursement. EA will report its compliance with local regulations and its ESMS through annual monitoring and reporting to ADB.|
|Involuntary Resettlement||The project is classified as category C for Involuntary Resettlement. The land for the solar power project was purchased on a willing seller-willing buyer arrangement. The substation and transmission line from the solar power substation are within the project boundary and have no additional project-linked land footprint. Involuntary resettlement impacts are not envisaged on account of the project and its associated facilities.|
|Indigenous Peoples||The project is classified as category C for Indigenous Peoples. Both the solar and wind subprojects, and existing EV charging network facilities are located in an area not known to be settled, claimed or owned by any distinct or vulnerable ethnic or indigenous peoples group. No impacts on indigenous peoples are envisaged on account of the project.|
|Stakeholder Communication, Participation, and Consultation||Initial public participation and consultation were conducted as part of the local regulatory requirements for the project approval of the solar and wind subprojects. EA conducts monthly CSR activities with the host communities and also checks if there are any grievances related to the projects.|
|Timetable for assistance design, processing and implementation|
|Credit Committee Meeting||13 Jul 2020|
|Approval||26 Aug 2020|
|Last PDS Update||23 Apr 2021|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Green Loan for Renewable Energy and Electric Vehicle Charging Network: Report and Recommendation of the President||Reports and Recommendations of the President||Aug 2020|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
|Title||Document Type||Document Date|
|Green Loan for Renewable Energy and Electric Vehicle Charging Network Project: Environmental and Social Compliance Audit Report||Environment and Social Compliance Audit Reports||Jul 2020|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
ADB, Energy Absolute Sign Green Loan for Renewable Energy and Electric Vehicle Charging NetworkThe Asian Development Bank (ADB) and Energy Absolute Public Company Limited (Energy Absolute) signed a 1.5 billion Thai baht ($47.62 million) green loan to finance ongoing renewable energy...