Cambodia is set to receive $73 million in financing from the Asian Development Bank (ADB) for energy sector development – “a $50 million policy-based loan package with $23 million in project investments”.
ADB on December 15 announced that it had given the nod to the financing package, noting that the accompanying Energy Transition Sector Development Program – formerly the Energy Efficiency Sector Development Program – “includes ADB’s first comprehensive policy reform package for the energy sector in Cambodia”.
The policy reform package “will be funded by a $40 million loan from ADB’s concessional resources and a $10 million loan from the ASEAN Infrastructure Fund under its ASEAN Catalytic Green Finance Facility [ACGF]”, the Metro Manila-based multilateral lender said in a statement.
“For the $23 million in infrastructure investments, the Climate Investment Fund’s Scaling Up Renewable Energy Program for Cambodia will provide a $6 million loan and $5 million grant in concessional climate finance, while the Green Climate Fund will extend a $12 million loan through the ACGF Green Recovery Program, all of which will be administered by ADB.
“The programme supports the [government’s] energy transition agenda to mainstream renewable energy and energy efficiency while shifting away from fossil fuels. It adopts data-driven regulation and planning for the power system to enhance flexibility and resilience, and anchors new infrastructure investments on strategic planning while demonstrating new technologies and business models,” the statement said.
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Author: May Kunmakara
Source: The Phnom Penh Post
Publication date: 15 December 2022