IFC weighs $8m for Cambodia solar power plant of Thai-listed Prime Road Power

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The International Finance Corporation (IFC) is considering a proposal to extend a financing package of up to $8 million to support a 60 MW solar power plant development project in Cambodia by Thai-listed firm Prime Road Power, the World Bank’s private sector financing arm said.

According to a disclosure, IFC is proposing to invest up to $4 million from the organization’s own account, while the remaining sum of up to $4 million will be from IFC in its capacity as implementing entity of the Canada Blended Climate Finance Program (CBCFP).

Located in Cambodia’s Kampong Chhnang province, the said power plant is the first phase of the 100 MW solar park planned by the Government of Cambodia. 

The project, which IFC describes as the “the first large-scale solar projects in Cambodia awarded through a competitive tender”, is expected to become operational by June 2022 and will sell electricity to Electricite du Cambodge (Cambodia’s state-owned power utility), pursuant to a 20-year power purchase agreement (PPA).

The project will be developed by a special purpose vehicle named Prime Road Alternative (Cambodia),  which is 99.99% owned by Prime Road Power Public Company Limited (PRIME), a listed company on the Stock Exchange of Thailand.

IFC says it expects the project to bring about an environmental impact of CO2 emissions reduction during generation, as well as the stakeholder impact of helping address growing energy demand in Cambodia. 

“Beyond the project, the investment is expected to increase market resilience and competitiveness by supporting one of the country’s first solar auctions and demonstrating the role of utility-scale solar projects in the country’s electricity generation mix,” it said.

By investing in the project, IFC says it will be providing long-term financing not readily available in the domestic market, while also looking to offer knowledge leveraging its global experience in the solar market as the sponsor expands operations in the space. 

The proposed investment follows IFC is the latest of the organisation’s deal in the renewable energy sector. In July last year, IFC committed to invest an additional Rs3.75 billion ($50 million) in India’s renewable energy platform Hero Future Energies (HFE) through its COVID-19 response facility. 

It also proposed lending up to $20 million in long-term financing to build a 100 megawatt solar project in Uzbekistan, in August last year.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.