ADB promoting renewables in US$90 million loan to Cambodian agribusiness

Credit: ADB

The Asian Development Bank (ADB) has approved a US$90 million loan to help Cambodia strengthen climate resilience and modernize the agriculture sector, including the promotion of renewable energy.

The project will boost the climate resilience of agricultural infrastructure and help to improve the competitiveness of the value chains of rice, maize, cassava and mango production in Cambodia. This includes rehabilitation of irrigation and water management infrastructure; upgrading of agricultural cooperatives’ value chain infrastructure; improvement of farm-to-market roads; upgrading of infrastructure for safety and quality testing; and the promotion of renewable energy – solar energy in particular – to reduce greenhouse gas emissions.

The Climate-Friendly Agribusiness Value Chains Sector Project will also be funded by an additional US$10 million loan and a US$30 million grant from the Green Climate Fund (GCF).

This the first project to be implemented following the adoption of Strategy for Promoting Safe and Environment-Friendly Agro-based Value Chains in the Greater Mekong Subregion (GMS) and Siem Reap Action Plan, 2018-2022.

“Agriculture plays a significant role in Cambodia’s economy, but the sector has largely relied on subsistence farming,” said ADB principal climate change specialist for Southeast Asia, Srinivasan Ancha. “ADB and GCF’s support will help the country’s agriculture sector move toward more modern, climate-resilient practices and contribute to Cambodia’s economic growth.”

The total cost of the project is US$141.04 million, with the Government of Cambodia and beneficiaries contributing US$11.04 million. It is expected to be completed in the third quarter of 2024. The agriculture industry accounts for about 33.7% of Cambodia’s gross domestic product.

Regulations released in Cambodia earlier this year halted the market for low voltage solar systems connected to the grid, but the larger consumer and the off-grid segments continue to show promise.

Read Next

PV Tech Premium
April 8, 2022
German developer Belectric sees potential in constructing PV plants on agricultural land as a means of helping European countries meet their renewables deployment targets while increasing community acceptance of solar.
March 22, 2022
Solar manufacturer Heliene and US nanomaterials specialist UbiQD are to collaborate on PV modules aimed at the growing 'agrivoltaic' sector.
February 14, 2022
Germany is launching an initiative to support the construction of solar projects on agricultural land, in a move the economy ministry estimates could result in the deployment of 200GW of extra PV capacity.
September 14, 2021
Renewables developer BayWa r.e. and the Fraunhofer Institute for Solar Energy Systems ISE have built a new research project to explore how solar systems can protect plants and fruit from extreme weather.
PV Tech Premium
July 19, 2021
Stephan Schindele, head of product management Agri-PV at BayWa r.e. Solar Projects, explores the mutual benefits of ‘Agri-PV’ to both solar farm operators and farmers alike, and reveals what is needed to take the sub-sector forward.
April 23, 2021
Solar PV systems could become a “very interesting compliment” to France’s agricultural sector as developers seek to add capacity and land is in higher demand, according to the chief executive of renewable trade body Syndicat des énergies renouvelables (SER).

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event