ADB, Energy Absolute ink THB160-million agreement for electric ferry fleet
The Asian Development Bank (ADB) and Energy Absolute have signed a 160 million baht loan agreement to finance an electric ferry fleet for Bangkok, the first such transport system in Southeast Asia, the ADB announced in a press release on Wednesday.
The ADB is leading financing for the project worth a total 600 million baht, which includes a 123.1 million baht concessional loan from the Clean Technology Fund, which finances the demonstration, deployment and transfer of low-carbon technologies, as well as investments from the Japan International Cooperation Agency and the Export-Import Bank of Thailand.
“This project is a fine example of ADB’s leadership in climate finance and supporting green technologies that help our developing member countries meet the Sustainable Development Goals,” said ADB vice-president for Private Sector Operations and Public–Private Partnerships Ashok Lavasa. “This project demonstrates the potential for electric mobility solutions beyond road vehicles to be adopted across Asia and the Pacific.”
The financing will be used for the E Smart Bangkok Mass Rapid Transit Electric Ferries Project.
E Smart Transport Company, a wholly owned subsidiary of Energy Absolute, will operate 27 e-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 an estimated 18,900 tonnes of carbon dioxide equivalent a year.
“This project demonstrates Energy Absolute’s leadership in e-mobility in Thailand and the region, and the potential to use technology developed within the region to reduce greenhouse gas emissions,” said company deputy chief executive officer Amorn Sapthaweekul.
Established in 2006, Energy Absolute is one of the largest renewable energy companies in Thailand and a pioneer of sustainable transport in the country. ADB supported the company during its maiden green bond issuance in 2019 and its first certified green loan financing in 2020.