The Asian Development Bank (ADB) and Energy Absolute Public Company Ltd. signed a 160 million baht ($4.7 million equivalent) loan agreement to fund a fleet of electric ferries for mass rapid transit in Bangkok, the first such transportation system in Southeast Asia East.
The AfDB led the structuring of financing for the 600 million Thai baht project. It includes a concessional loan of $3.6 million from the Clean Technology Fund, which finances the demonstration, deployment and transfer of low-carbon technologies with significant potential to reduce greenhouse gas emissions. term, as well as investments from the Japan International Cooperation Agency and the Export-Import Bank of Thailand.
“This project is a fine example of AfDB leadership in climate finance and support for green technologies that help our developing member countries achieve the Sustainable Development Goals,” said AfDB Vice President Ashok Lavasa. for private sector operations and public-private partnerships. “This project demonstrates the potential for electric mobility solutions beyond road vehicles to be adopted across Asia and the Pacific.”
The funding will be used for the E Smart Bangkok Mass Rapid Transit Electric Ferries project. E Smart Transport Company Ltd., a wholly owned subsidiary of Energy Absolute, will operate 27 electric ferries along the Chao Phraya River in Bangkok. Each ferry can comfortably carry up to 250 passengers per trip. The project will reduce greenhouse gas emissions by approximately 18,900 tonnes of carbon dioxide equivalent per year.
“Energy Absolute is proud to continue to work with ADB as a trusted financial partner to support the expansion of our clean energy and sustainable transportation business,” said Amorn Sapthaweekul, Deputy Managing Director of Energy Absolute. “This project demonstrates Energy Absolute’s leadership in electric mobility in Thailand and the region, and the potential for using technology developed in the region to reduce greenhouse gas emissions.”
Energy Absolute, which was established in 2006, is one of the largest renewable energy companies in Thailand and a pioneer in sustainable transportation in the country. The AfDB supported the company for its first green bond issuance in 2019 and its first certified green loan financing in 2020.