World Bank, IFC prepared to loan to Thailand

BANGKOK, July 14 (TNA) – The World Bank via the Clean Technology Fund and the International Finance Corporation (IFC) are ready to extend soft loans of US$300 and $400 million respectively to Thailand to help develop alternative energy and boost efficiency of energy consumption, according to Energy Minister Wannarat Channukul.

Jitendra Shah, Coordinator of the Social and Environment Development Unit, of the World Bank in ASEAN, on Monday met and discussed the matter with the minister.

The combined loans of $700 million or some Bt23 billion will be provided at a low interest rate of 1.75 per cent and a repayment period of 20-30 years.

Dr. Wannarat said the World Bank had assigned the Energy Ministry to coordinate the lending.

The ministry plans to hold a workshop attended by representatives of financial institutions, the World Bank, and agencies concerned to work out the lending criteria.

He said the World Bank supported the lending to Thailand because it had confidence in the government’s policy to promote alternative energy under a 15-year plan and its past achievement in various energy affairs.

Mr. Shah said the loans might be extended through the ESCO Fund or to the state/private sectors directly.

Developed countries have set up a $5 billion Clean Technology Fund to help various countries develop technologies to reduce the greenhouse effect.

Under the alternative energy plan, Thailand hopes to help reduce greenhouse gases by 20 million tonnes per year. (TNA)