$3.1bn sought for green projects

Thailand hopes to receive a loan of US$3.1 billion from the World Bank for clean energy technology projects to help limit the impact of climate change, according to the Department of Alternative Energy Development and Efficiency (DEDE).

Krairit Nilkuha, director-general of the DEDE, said the department planned to use the money to help finance 70-80% of the total investment in clean energy technology, particularly by state-owned projects.

Privately owned projects will be screened by the Export Import Bank of Thailand and the Bank for Agriculture and Agricultural Co-operatives (BAAC).

He expects the World Bank will start to provide the loans under the Clean Technology Fund (CTF) early next year.

Thailand would be the fourth country in the world to receive CTF support, following Turkey, Mexico and Egypt, where funds are going to transport using clean technology.

Mr Krairit believes Thailand qualified because the country has "a clear direction to develop green energy projects in order to cope with climate change and has plentiful resources of materials''.

The BAAC and the Exim Bank are expected to approve $800 million or 28 billion baht in loans to private companies' projects. Borrowers would be charged the minimum lending rate (MLR) plus 0.25%.

Candidates would include operators holding government concessions for $290 million worth of biomass energy projects in 340 communities.