Logo of Phnom Penh Post newspaper Phnom Penh Post - Thai firm gets $28M loan for Cambodia solar plant

Thai firm gets $28M loan for Cambodia solar plant

Content image - Phnom Penh Post
Cambodia plans to add 495MW of solar power capacity from seven projects by 2023, which will represent ‘20 per cent’ of the total energy supply by then, according to the energy ministry. Heng Chivoan

Thai firm gets $28M loan for Cambodia solar plant

Bangkok-based B Grimm Power Plc (BGRIM) has received a $28.1 million syndicated loan from top financiers to undergird its solar energy project in northwestern Cambodia, according to Thai media.

In November 2019, BGRIM entered into a share purchase agreement with Pramote Laocharoenwong, who is not connected with the company, to acquire all shares of Cambodia’s Ray Power Supply Co Ltd (RPS) for a total value of $300,000.

Under a 15-year deal penned on October 28, top Thai lenders Kasikornbank (KBank), Export-Import Bank of Thailand (Exim Thailand) and Bangkok Bank have made the funds available to RPS, a wholly-owned subsidiary of B Grimm Solar Power 1 Co Ltd, the Bangkok Post reported.

RPS runs a 39MW solar photovoltaic plant in Banteay Meanchey province, which went online in December.

BGRIM chairman and president Harald Link was quoted by Bangkok Post as saying: “The loan is a vote of confidence by top Thai financial institutions in BGRIM at a time when fundraisings in general are significantly hampered by the effects of Covid-19.

“RPS’ ground-mounted solar power facility is considered a success for being completed on schedule amid many restrictions, including the pandemic’s effects and severe floods in the construction area throughout 2020.”

The solar farm began feeding Electricite du Cambodge’s (EdC) grid on December 15 under a 20-year contract, the daily said, adding that RPS is the first solar energy generation station in Cambodia to receive a firm power supply guarantee from the government.

KBank executive vice-president Tipakorn Saiphatana said the loan is in line with the bank’s policy to encourage investment for sustainability and support customers’ transition to a net-zero emissions future.

“KBank believes that the project will play an important role in contributing to the development of highly efficient and reliable electricity services and utilities, which is an important foundation for Cambodia’s economic growth,” Tipakorn was quoted as saying.

Exim Thailand president Rak Vorrakitpokatorn said the solar farm is well-suited for the bank’s campaign to prop up international investments of Thai ventures.

Niraman Laisatit, senior executive vice-president in charge of corporate banking at Bangkok Bank, underlined that the bank has supported BGRIM for more than 26 years in the development of a range of domestic and international projects, starting with Amata B Grimm Power 1 Co Ltd in 1995.

BGRIM’s Link emphasised that the RPS project is pursuant to shifting energy demand practices, the Bangkok Post said.

Cambodia aims to add 495MW of solar power capacity from seven projects by 2023, which will represent “20 per cent” of the total energy supply by then, according to the Ministry of Mines and Energy.

MOST VIEWED

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Ice cream, noodles flagged over carcinogen

    The General Department of Customs and Excise of Cambodia (GDCE) has identified three types of instant noodles and ice cream trademarks originating from Thailand, Vietnam and France that are suspected to contain ethylene oxide, which poses a cancer risk to consumers. The general department has

  • Exclusive interview with Josep Borrell Fontelles, High Representative of the EU

    CAMBODIA is hosting the 55th ASEAN Foreign Ministers’ Meeting (AMM) and Related Meetings this week with top officials from the US, China, and Russia and other countries in the region slated to attend and to meet with face-to-face with their counterparts on the sidelines. In

  • Rise in Thai air routes to Siem Reap fuels travel hopes

    Local tourism industry players are eager for regional airline Bangkok Airways Pcl’s resumption of direct flight services between the Thai capital and Siem Reap town on August 1 – home of Cambodia’s awe-inspiring Angkor Archaeological Park – which is expected to boost the growth rate of

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’