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.