In cooperation with the Association of Banks in Cambodia (ABC) the World Bank and the Ministry of Industry, Mining and Energy (MIME), with support from the IFC/MPDF and the Rural Electrification Fund (REF), the aims was to (i) provide information on regional trends in sustainable energy financing, (ii) discuss the business opportunities, (iii) present some successful case studies, and iv) exchange opinions on rural energy development in Cambodia and how to move forward.
The workshop presentation can be downloaded:
Regional and Cambodian experiences in energy financing
- Regional Financing: Calvin Xu, IFC -CHUEE Project China (PDF 907kb)
- Cambodian Bank support to energy projects: Charles Vann; Canadia Bank (PDF 63kb)
- Biodiesel production in Cambodia: (PDF 130kb)
- Financing sustainable energy projects: Joost Siteur, E&Co (PDF 679 kb)
Financing rural energy in Cambodia: Success Stories
The participants discussed the main problems and reasons for limited support from the banking sector for rural SMEs providing energy services, the problems are:
- Lack of Long Term Loans
- Political Will to Support
- Financial Innovations
- Lack of Equity
- Lack of Energy Entrepreneurs
- Regulation
- Natural Disasters (destroyed collateral)
A final group session focused on what the World Bank and IFC could do to overcome the problems:
- Create long term loans (for Banks to on-loan with lower rates)
- Support stakeholders with Subsidy and Grants
- Soft loans to local investors
- Interest rates should be lower than 12%, less collateral
- Higher leveraging financing (80 to 90% of investment)
- WB/IFC subsidy should continue in rural sector
- IFC/WB to supports lower interest rates to be provided by Banks
- Consider all energies (not just electricity)
- Funding of rural education about rural development and renewable energy technologies with involvement of Local Government, Finance Institutions and consumers.
- Improvement of battery charging stations,
- Training of Finance Institutions
- Land registration (for collateral)
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