Thailand Granted US$70 Million Alternative Energy Loan

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Thailand Granted US$70 Million Alternative Energy Loan

The Asian Development Bank (ADB) this week granted a US$70 million (Bt2 billion) long-term loan for the construction of the Lopburi solar power plant. The project, set to be the largest solar photovoltaic (PV) project in the world, was granted assistance by the ADB to help promote alternative energy sources around the world.

Thailand_Granted_US70_Million_Alternative_Energy_Loan_1Bangkok, the 31st of July 2010: The development, in Thailand’s central province of Lopburi, is the first of its kind to gain assistance from the ADB under the new initiative to support the spread of alternative energy sources worldwide.

ADB Vice President for Private Sector & Co-Financing Operations Lakshmi Venkatachalam stated that the Thai government’s clear and attentive policy promoting alternative energy sources and the great potential of the nation were the main reasons behind the ADB decision to help in funding the solar project.

Involving the construction of the world’s largest solar plant, the Lopburi projects first phase is expected to cost over Bt3 billion with a production capacity of 73 megawatts. The ADB will assist with some Bt2 billion in long-term loans for the first phase whilst the remainder will be provided by the Kasikorn Bank, Bangkok Bank and Siam Commercial Bank in a joint agreement.

Thailand_Granted_US70_Million_Alternative_Energy_Loan_2The second phase, expected to cost approximately Bt9.2 billion and produce an additional 84 megawatts. Construction of the first phase is expected to commence in August 2010 while the project has a scheduled completion date of 2011. In addition to funding part of the project, the ADB has agreed to purchase some 6,000 carbon credits.

The project will be owned and operated by Thailand’s National Energy Development Company, whose shares a held equally between CLP Thailand Renewable Limited, Diamond Generating Asia Limited and Power Plant Energy.

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