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Country Thailand
Location Chaiyaphum and Ayutthaya Provinces
Project Number 45923-01
Approval Number 7356/2875
Type of ADB Assistance / Amount
Others US$15.00  million
Private Sector Loan US$25.20  million
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 2
Description The Project will be developed and implemented over two phases (Phase 2A [Chaiyaphum] and Phase 2B [Ayutthaya]) under 4 standard renewable energy PPAs (25 MW for each site) with PEA in Chaiyaphum and Ayutthaya Provinces. The Project will have a total capacity of 50 MW installed gross capacity and will utilize multicrystalline photovoltaic technology. Any additional generation from the Project beyond the PPA contract capacity will be distributed to the grid free of charge as an economic benefit for the country. The PPAs are automatically renewable after every 5 years and, in addition to the wholesale tariff, include an “Adder” of B8.0 per kWh applicable for 10 years from commercial operation date (COD). The Project will be developed under a separate engineering, procurement, construction (EPC) arrangements for each phase, COD planned for 2013 for both phases.
Objectives and Scope The Project will i) diversify Thailand's energy mix through the addition of renewable energy capacity ii) demonstrate the viability and sustainability of a large-scale private sector solar project iii) install and operate 2 large-scale solar power generating facilities with a combined capacity of 50 MW
Status of Development Objectives To be determined.
Status of Operation/Construction Phase 2A has achieved COD on 6 March 2013 and is set to achieve Mechanical Completion by 30 April 2013 while Phase 2B is expected to achieve COD by 9 April 2013 and Mechanical Completion by 30 April 2013.
Linkage to Country/Regional Strategy The country partnership strategy for Thailand 2007–2011 is directed at three core strategic areas—infrastructure, environmental sustainability, and capital markets. The government's Alternative Energy Development Plan, approved by the Cabinet on 28 January 2009, notes the immense potential energy in Thailand's solar radiation and the savings on energy imports that can be made through its use, with private sector investment. The Project also supports the Government's long-term objective for the Thailand Clean Technology Fund Investment Plan to utilize CTF resources to support private sector renewable energy projects.
Safeguard Categories Safeguard Categories explained (Launches new browser window)
Environment B
Resettlement C
Indigenous People C
Summary of Environmental and Social Aspects In compliance with ADB's Safeguard Policy Statement (2009), the Project is classified as category B for environment, category C for involuntary resettlement, and category C for indigenous peoples. The potential environmental and social impacts of the project have been identified and effective measures to avoid, minimize, mitigate, and compensate for the adverse impacts are incorporated in the Initial Environmental Examination (IEE) reports prepared for Project Phase 2A and Phase 2B. The institutional capacity and commitment of BSE to manage the project's social and environmental impacts are deemed adequate and are described in the Environmental Management Plan included in the IEE reports. The sites where Phase 2A and 2B will be constructed are already under the possession of the BSE, acquired on a willing-seller-willing-buyer basis. During construction phase, about 600 workers will be engaged mainly as skilled and unskilled laborers. BSE, as well as its contractors, will comply with ADB's Social Protection Strategy (2001) and report annually to ADB on their compliance with national labor laws and adherence to internationally recognized core labor standards. Several public hearing and information dissemination activities were carried out involving different stakeholders to ensure public participation. Such activities were confirmed during the due diligence site visit and were found to be in accordance with ADB's requirements. On gender classification, the Project has been assigned a ‘no gender element' category
Stakeholder Communication, Participation and Consultation Several public hearing and information dissemination activities were done carried out involving different stakeholders to ensure public participation. Such activities were confirmed during the due diligence site visit and were found to be in accordance with ADB's requirements.
Timetable for assistance design, processing and implementation
Concept Clearance 14 Nov 2011
Due Diligence Mission 19 Mar 2012 to 23 Mar 2012
Private Sector Credit Committee Meeting 30 Apr 2012
Board Approval 25 Jun 2012
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