ADB mobilizes $5.4 M for Asia energy projects

MANILA, Philippines — The Asian Development Bank (ADB) has earmarked $5.4 million for technical assistance grants to prepare several power-related projects in Southeast Asia including a rural electrification project in the Philippines.

A regional project “Southeast Asia Energy Sector Development, Investment Planning and Capacity Building Facility” approved in October provides project preparatory assistance, technical support, policy advice, knowledge sharing, and capacity building for projects in the region that have been lined up for loan funding in their respective country operations business plans for 2018-2020

The technical assistance facility supports the Support for a Sustainable Power Sector (Cambodia), Accelerating Renewable Energy and Energy Efficiency Expansion (Vietnam), Carbon Capture and Storage (CCS) Activity in the Natural Gas Processing Sector (Indonesia); Geothermal Sector Project (Indonesia), Power Network Development Program II (Myanmar), GMS Cross-Border Power Trade and Distribution Project (Lao PDR), and Sustainable Rural Power Supply Project (Philippines).

“These energy sector projects require similar preparation, due diligence, design and readiness activities,” states the project document.

Funding from the project would come from ADB’s Technical Assistance Special Fund ($4 million), Clean Energy Fund under the Clean Energy Financing Partnership Facility ($1 million), and Clean Technology Fund ($400,000).

Despite rapid growth in the Southeast Asia, ADB said 65 million people in the region remain without access to electricity and 250 million rely on biomass for cooking.

The region has also just started developing frameworks and financing sources for transitioning to clean energy as new technologies and lower cost begin to make this possible.

The bank said while the investment and capacity building needs differ among developing member countries, these generally include generation, transmission, distribution, and energy efficiency.

“The role of the energy sector as a key enabler of inclusive growth has become more important as the DMCs of Southeast Asia face the challenge of expanding their economies,” ADB said.

Projects backed by loans and this technical assistance facility are meant to expand and enforce existing grids, connect businesses and households, and enhance the quality of life in unconnected households across the region.

“They will help expand the use of renewable energy resources and clean technologies, such as solar power in Cambodia, the Philippines, and Vietnam, and geothermal power and CCS in Indonesia, and thus help reduce carbon emissions and improve access to electricity services,” the bank said.