The Asian Development Bank and Energy Absolute Plc. signed a 160-million-baht loan agreement to finance a fleet of electric ferries for use in mass transit in Bangkok, the first such transport system in Southeast Asia.
The ADB led the structuring of the financing for the 600-million-baht project. It includes a US$3.6 million concessional loan from the Clean Technology Fund, which finances the demonstration, deployment, and transfer of low-carbon technologies with significant potential for long-term greenhouse gas emissions savings, as well as investments from the Japan International Cooperation Agency and 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.
The financing 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 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 tons of carbon dioxide equivalent a year.