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Sustainability Stays at Top of the Agenda for Construction

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Over 250 industry executives from across the industry including contractors, surveyors, civil engineers and architects from across the industry contributed to the survey results, captured in a new report Trend Insights: Sustainability in Construction.

74 percent of respondents put sustainability at the forefront of the global construction industry. The report reveals that growth of sustainable construction is viewed as inevitable, with client demand the main driver among contractors, followed by internal company policy and targets. Contractors offering the most sophisticated range of sustainable services will be ideally positioned to benefit.

Currently cost and lack of government support are perceived to be the key obstacles to growth in the sustainable sector; however 85 percent of respondents thought that sustainable construction methods should be used despite the increase to the cost of projects. Key report findings include:

  • 68 percent of contractors report a growth in demand for sustainable methods from clients in the last five years.
  • 85 percent stated that sustainable construction methods should be used despite the increase in cost of projects
  • 64 percent of contractors stated that sustainable construction capabilities are now very important or important when competing for clients
  • 72 percent of contractors in the survey were members of a sustainable business group or a green certification body

The full report, titled as “Trend Insight: Sustainability”, is available from timetricreports.com.

Persada JCB Opens New Headquarters in Indonesia

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Persada JCB has opened a dedicated, purpose-built new headquarters in Indonesia, supported by manufacturer JCB. Based in Palembang, Sumatera, Persada’s brand new, $1 million-facility provides businesses with access to JCB’s entire family of machines – as well as specialist support and maintenance services.

Anthony Azis, Marketing Director Persada JCB, says, “We want our customers to understand for themselves how we can better support their businesses through this new facility. It means our technicians can take care of our customer’s JCB machines, whatever their condition. By ensuring they achieve maximum uptime through parts availability or on-demand technical support, we are making good JCB’s aim to make their lives easy in a hard world.”

The new facility, set over a 2,400-square-metre site, provides an unrivalled level of technical support. A 25-strong team will overhaul machines in the dealership’s workshop and deliver other services including: on-site assistance, local spare-part services, and the telematics-based machine monitoring system – LiveLink–which enables customers and Persada to track and maintain their machines. This is all backed up by a 24/7 hotline that delivers help to customers, wherever and whenever they need it.

Visitors to the dealership in Palembang will gain the full JCB experience, with greater access to JCB’s world-leading family of machines. The full range is available at the new facility, including popular models such as the 3CX and 3DX Backhoe Loaders, the JS205 and JS305 Tracked Excavators, and a range of telescopic handlers. The range is also set to include the new JCB116 Soil Compactor, which delivers up to 15 percent fuel savings and vastly improved compaction performance against the outgoing model.

This new partnership between JCB and Persada is evidence of a wider strategic move from JCB to support customers and their businesses across the region. Persada have ambitious plansto open similar facilities in all of Sumatera’s provinces including – Jambi, Bengkulu, Aceh, Bangka & Belitung and Batam – by 2020.

Cleantech Solar Enters Into Clean Energy Supply Agreement with Tata Steel Thailand

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Cleantech Solar (Thailand) Limited (CST) and Siam Construction Steel Company Limited (SCSC), a subsidiary of Tata Steel Thailand, have entered into a long-term energy supply agreement.

As part of the agreement, CST will deploy, monitor and maintain a 1.4 MWp Solar Photovoltaic (Solar PV) system on the roof of SCSC factory in Rayong. SCSC will enjoy clean renewable solar electricity generated from a Solar PV system over the duration of the agreement. Ingenero (Thailand) Corporation Limited, a local Solar PV integrator, worked closely with Cleantech Solar to develop the project and will be installing the Solar PV system. The Solar PV system is expected to generate over 32 GWh of clean solar electricity over its lifetime.

Mr. Rajiv Mangal, President and CEO of Tata Steel (Thailand) said, “Tata Group places high importance on sustainability and the deployment of solar photovoltaic systems is a testimony to this drive. The Rayong plant will host our first solar PV project in Thailand and this initiative will noticeably reduce our carbon footprint.”

Mr. Raju Shukla, Chairman and CEO of Cleantech Solar said, “We are excited to work with Tata Steel on this project in Thailand. Tata Steel’s adoption of clean energy is a reflection of their leadership in reducing carbon emissions. We look forward to working together over the lifetime of the project.”

The top view of the proposed 1.4 MWp Solar PV system.

In addition, Mr. Pornchai Thangworakulchai, Vice President – Rayong Plant at SCSC mentioned, “We were interested in solar photovoltaic technology for some time but until recently we found that the project was not financially attractive. The proposal offered by Cleantech Solar for an attractive tariff structure made the Solar PV system attractive and we look forward to working with Cleantech Solar and Ingenero towards the successful deployment of this project.”

The Rayong Solar PV project will use 4,320 modules installed over the north and south facing sides of the roof. The layout is optimised to allow easy maintenance of the roof and the Solar PV system, avoiding any obstructions. In addition to the economic savings, the panels will shade the roof and this is expected to reduce the ambient temperature of the plant.

Laguarda.Low Architects Awarded for Oct Bao’an Waterfront Development

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New York City-based Laguarda.Low Architects has been awarded first prize in an international competition conducted by OCT Group for the design of OCT Bao‘an, a new large-scale planned waterfront development in Shenzhen’s Bao‘an district in China. With stunning views of Qianhai Bay, Laguarda.Low’s master plan and design encompasses a 128-acre site and creates dynamic spaces for business, retail and entertainment.

As both Master Planner and Master Architect for the project, and in collaboration with renowned landscape design firm SWA, the Laguarda.Low Architects’ design integrates nature, recreation and culture into a new urban setting. The site is divided into four primary zones, connected by pedestrian paths, integrated waterscapes, and landscaped promenades. The four zones include a new Urban Business District, a multi-level Retail Park, a Culture Heritage Park and a Book Market.

“We are very proud to have been selected to design such a dynamic development that will incorporate the Laguarda.Low vision for this location,” states John Low, Principal of Laguarda.Low. “OCT Bao’an is an outstanding development and we’re confident that this project will complement the evolving neighbourhood in one of China’s most important cities.”

Laguarda.Low’s plan positions a multi-level retail village at the centre of the site, surrounded by four residential towers to the northeast; three office towers to the southeast; a hotel to the south; an indoor mall to the west; and a new performance hall and an exhibition facility to the north, across from the city’s green belt. A central loop connects the various zones and provides access to parking below.

At the south end of the site, the Urban Business District includes seven 13-storey office buildings and a 13-storey hotel. The tiered glass structures feature landscaped terraces and green roofs that collect rainwater and limit solar heat gain. The office buildings serve as a captivating backdrop to the waterfront development and frame the sloping, landscaped-formed retail park to the east, providing direct access to the waterfront. Large domed skylights merge the line between indoor and outdoor spaces. The four-story design elevates the traditional shopping experience with expansive natural light, dynamic circulation and expansive green spaces.

At the north end of the site, the Cultural Heritage Park provides numerous options for leisure and entertainment, including a retail centre and pedestrian paths leading to an open-air plaza and a performing arts centre next door. Water serves as a key element of the design by separating the various aquatic activities and creating a sense of discovery among spaces where visitors can explore the waterfront promenade and excursion boats, as well as a new Cultural Heritage Centre, X Sports Park, playground, food and beverage garden, and performance amphitheatre.

The Book Market is situated on the eastern parcel of the site, adjacent to a new library and youth centre. The subterranean space houses a multi-level bookstore and food hall with direct connections to the subway and the neighbouring youth facilities. Above the structure is a landscaped park that surrounds a dramatic skylight and space to appreciate the natural beauty and tranquillity of the outdoors.

“Our firm is honoured to again be working with OCT Group, and add to their impressive roster of 21st century developments,” said Pablo Laguarda, Principal of Laguarda.Low. “We are dedicated to contributing the highest quality design to Shenzhen’s growing business and entertainment districts, and OCT Bao’an will showcase our shared passion for design that does the utmost to enhance the surrounding environment.”

The spectacular waterfront site sits 13 miles west of Shenzhen’s city center and is less than an hour drive from Hong Kong. The development also includes two subway stations on Shenzhen’s Huangzhong Line (Line 5), making the area prime for development.

SNC-Lavalin Completes Transformative Acquisition of WS Atkins

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SNC-Lavalin Group Inc. recently announed that it has completed its acquisition of WS Atkins plc (“Atkins”), one of the world’s most respected consultancies in design, engineering and project management, with a leadership position across the infrastructure, transportation and energy sectors. Headquartered in the UK, Atkins is a geographically diversified global company with approximately 18,000 employees in the US, Middle East and Asia, together with a leading position in the UK and Scandinavia.

“SNC-Lavalin is continuing to deliver on its strategy of establishing itself in the top 3 in our industry globally. By combining our two highly complementary businesses, we are solidifying SNC-Lavalin’s position as one of the largest fully integrated professional services firms in the world, while improving our margins and balancing our business portfolio,” said Neil Bruce, President & CEO.

The acquisition of Atkins creates a global fully integrated professional services and project management company – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance. This acquisition increases the company’s customer base, geographic reach and scale, while strengthening its position globally to develop and capitalise on the infrastructure, rail and transit, nuclear and renewables markets.

The acquisition is expected to improve SNC-Lavalin’s quality of earnings, adding approximately C$3.5 billion of consistent comparatively high-margin revenue, with ongoing revenue from framework and master service agreements, providing long-term repeat business. It further reduces our business risk profile and is expected to improve overall margins, as Atkins operates a consultancy business model, adds a significant amount of reimbursable projects, and fixed-price lump sum contracts do not carry any procurement or construction risk.

Heath Drewett, Group Finance Director and Executive Director of Atkins, now becomes President of Atkins, SNC- Lavalin’s fifth business sector, and a member of SNC-Lavalin’s executive committee, reporting directly to Neil Bruce.

Over the coming months, teams from both organisations will work together to integrate both companies in order to create value for all stakeholders and realise expected synergies from the acquisition. SNC-Lavalin has a strong record of successful integrations and is committed to leveraging the best practices from each organisation to ensure that the two companies are combined with speed, diligence and efficiency.

The acquisition is expected to deliver approximately C$120 million in cost synergies – approximately C$30 million from SNC-Lavalin and C$90 million from Atkins – by the end of the first full financial year. These synergies would mainly include eliminating corporate and listing costs, optimising corporate and back-office functions and shared services, streamlining IT systems, and real estate consolidation where appropriate.

As previously announced by Atkins, Atkins shareholders voted in favour of the acquisition at a meeting convened by order of the High Court of Justice in England and Wales (the “Court”) and a general meeting, both held on June 26, 2017. The acquisition was structured as a scheme of arrangement and the Court sanctioned the scheme on June 29, 2017. Following the sanction of the Court, the acquisition became effective in accordance with its terms on July 3, 2017.

Acquisition Financing Update
The aggregate cash consideration for the acquisition of £20.80 per Atkins share in cash for a total consideration of approximately C$3.6 billion was financed using the net proceeds from the Corporation’s previously announced C$880 million public bought deal offering of subscription receipts completed through a syndicate of underwriters; a C$400 million concurrent private placement of subscription receipts with the Caisse de dépôt et placement du Québec a C$1.5 billion loan2 from the Caisse to SNC-Lavalin Highway Holdings Inc.; a new £300 million unsecured term loan with a syndicate of North American banks as well as approximately £200 million drawn under the Corporation’s existing syndicated credit facility.

With the closing of the acquisition now effective, each subscription receipt will be exchanged for one common share in the capital of the Corporation without additional consideration and without further action by the holders of subscription receipts. Holders of subscription receipts are also entitled to receive a cash amount for each subscription receipt equivalent to the dividend paid by the Corporation on each Common Share on June 1, 2017, less any applicable withholding taxes.

SNC-Lavalin expects that trading in the subscription receipts will be halted from the Toronto Stock Exchange (TSX) before the opening of the market on July 4, 2017, that the transfer register maintained by the subscription receipt agent will be closed and that the subscription receipts will be delisted by the TSX after close of business on July 4, 2017. Trading on the TSX of the underlying Common Shares is expected to begin at the opening of the market on July 4, 2017.

It is expected that settlement of the consideration to which the relevant Atkins shareholders are entitled will be effected not later than 14 days after the Effective Date, in accordance with the terms of the scheme of arrangement.

Philips Lighting Illuminates Nhat Tan Bridge

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Vietnam’s Nhat Tan bridge

Philips Lighting recently announced the completion of Hanoi’s latest luminous landmark, the Nhat Tan Bridge.

An Urban Icon-in-Technicolour
Each night, the new lighting system bathes the bridge in a prism of colours, turning the structure into an ever-changing work of art. The new architectural lighting illuminates the five majestic spans, along with the cables that run high above the bridge.

Now, all who cross Hanoi’s Red River are met with the Nhat Tan Bridge’s five colourful spans, which symbolise the five ancient gates to this capital city. The bridge, built in 2015, is currently Vietnam’s longest “cable-stayed” bridge, a technological advance over the suspension bridge. A vital, visible link between Hanoi and its main airport, the newly illuminated Nhat Tan Bridge is already attracting tourists and locals alike.

Advanced Lighting Technology
The Nhat Tan Bridge uses the cloud-based Philips ActiveSite lighting management system to remotely monitor, maintain, and manage the lighting system. The actual light points on the bridge’s spans are Philips Color Kinetics, which can create a staggering 16.7 million different colours, enabling the bridge to be lit in special colours to commemorate events and holidays.

Keeping Lighting Sustainable
Like most of the world’s tourist-destination cities, Hanoi is in the process of becoming an even “smarter,” more sustainable city. And the bridge’s new system supports Hanoi’s sustainability goals. Compared to conventional lighting, the new long-life LED system may deliver up to 75 percent energy savings, as well as saving on operation and maintenance costs.

BuildTech Yangon Synergises Green Network Development in Myanmar

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The 4th edition of BuildTech Yangon concluded on 20 May 2017 after three days of industry discussions, international dialogues, commercial engagements and knowledge sharing in Myanmar. Organised by Sphere Exhibits, a subsidiary of Singapore Press Holdings (SPH) and co-organised by the Myanmar Construction Entrepreneurs Association (MCEA), BuildTech Yangon 2017 is the leading industry event focusing on the value chain for the build environment sector in Myanmar.

Graced by the Guest of Honour, U Zaw Aye Maung, Minister of Ethnic Affairs, Ministry Yangon Region Government, BuildTech Yangon 2017 focused on green buildings, key solutions and technologies, redefining Myanmar’s building and construction sector. Attended by high profile delegates, dignitaries and key decision makers, the event took a focused approach in addressing key policies in the country’s city development.

Advancing the Green Building Network in Myanmar
A highlight this year was the inaugural Green Building Conference, an innovative two- day event designed to help nurture sustainable and green development whilst fostering the formation of a National Green Building Council in Myanmar.

The World Green Building Council (WGBC) participated in BuildTech Yangon for the first time this year, supported by the Singapore Green Building Council, the country’s representative to the eminent international group. WGBC held several meetings with local industry associations to discuss the development and nurturing of Myanmar’s green building movement.

Delegates to the Green Building Conference had access to sessions on a range of topics that included cases studies on recent green projects and introductions to green buildings and green architecture. Panel discussions with a wide range of experts on the topics of Regulations, Certifications & Policies Building and Housing adapted to Climate Change and Innovative Solutions towards a Greener Yangon were well received.

Dr. Swe Swe Aye, Chairman of the Green Building Committee, Building Engineers Institute of Myanmar and co-organiser of the Green Building Conference, said: “The inaugural Green Building Conference was a tremendous success, and we are thankful for the experts in green building construction who took time from their busy schedules. The Green Building Committee and Building Engineering Institute welcome the opportunity to be able to collaborate closely with local and regional green building experts and authorities in the region.”

Delegates and visitors also saw the latest in green technologies and sustainable and energy efficient solutions at the Green Pavilion. Participating companies from China, India, Italy, Malaysia, Myanmar, Singapore, South Korea, and Thailand showcased a wide array of innovative products, solutions, and materials on the trade floor.

Mr. Ryo Lau K.S, Sales Engineer of Master Wire Cable Sdn Bhd said, “As a Malaysian company that has taken the plunge to explore opportunities, we have identified a gap in the manufacturing and supply of cables in Myanmar. There is a vast potential in Yangon as the city expands its infrastructure and building construction capabilities and needs. We are happy to have obtained good sales leads at the trade show.”

Additionally, a Memorandum of Understanding between the Myanmar Construction Entrepreneurs Association (MCEA) and the Singapore Institute of Building Limited (SIBL) was renewed to further extend their collaboration in advancing the industry. I&H Engineering Co., a joint venture between the Myanmar Ministry of Construction and I&H Asia Pacific, launched their new factory located just outside of Yangon, while trade missions from across the region held closed-door networking sessions.

Championing Industry Leaders
Mg Mya Hnin Bi from THS Construction was the winner of this year’s highly anticipated brick laying competition, which featured a live assembly of a set prototype of a model building. The national competition saw 20 companies competing to win the accolades, and spurring improvements in brick layer techniques and skillsets in the local construction sector.

The objective of this national competition aimed to increase the skill level of workers in the industry as well as to incentivise award winners to further their skills in similar international brick laying competitions. Brick laying is an important and essential skill that is much-needed in the construction industry. Competitions such as this will encourage workers to sign up to bricklaying courses in Myanmar’s effort to stay ahead.

Some 1,000 guests also came together for the MCEA annual gala which took place on 19 May 2017. Awards, jointly presented by MCEA and Sphere Exhibits, were given to young construction entrepreneurs for their exemplary contributions to the industry and community. They included Diamond, Gold and Silver Awards for the Best Contractors and Best Projects, and individual accolades for MCEA’s Man of the Year and the Builder of the Year Award.

For more information, visit www.btyangon.com/en.

thyssenkrupp Inaugurates World-Class Elevator Manufacturing Site in Pune

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The elevator facility in Pune, India.

thyssenkrupp recently inaugurated its newest Multi-Purpose Facility (MPF) for the elevator industry in the Chakan Industrial Area of Pune, Maharashtra, India, The facility will include the manufacturing of elevators, a distribution centre and training facilities. Representing an investment of 3 billion rupees (44 million euros), the new 20,000-square-metre facility is designed for an initial capacity of manufacturing 6,000 elevator units, extendable to over 10,000 units in the foreseeable future.

thyssenkrupp has built a strong global reputation in helping to improve mobility and efficiency in rapidly-growing urban areas around the world. Having established a 95 percent manufacturing localisation target, the opening of the Pune factory will enable the company to significantly expand in the region and support the increasing growth of the Indian construction sector, driven by strong urbanisation.

Nurturing local talent is an essential element of thyssenkrupp’s plans for India. As part of the factory’s inauguration thyssenkrupp will also be launching a new seed campus training centre for field technicians. This facility will support the development of local skills and knowledge in line with the Indian government’s wider training programs to improve service provision and efficiency in businesses across the region.

The global seed campus team is taking learning at thyssenkrupp Elevator to a new era, driving the evolution of learning tools and methodologies by including digitalisation in all its forms: mixed reality, virtual reality, gaming applications and simulations.

On this occasion, Ravi Kirpalani, CEO of thyssenkrupp India, comments: “The urban population in India is one of the fastest growing in the world. 30 percent of citizens currently live in urban areas, and this is expected to reach 40 percent by 2030. The government is focused on building new housing complexes, airports, malls, railway stations and harbours. We are delighted that our new local manufacturing site will better enable us to support this.

With the addition of the new Multi-Purpose Factory to the Chakan Industrial Area, thyssenkrupp is poised to play an important role both in supporting the development of the local area, and contributing to wider Indian goals of sustainable and efficient urbanised growth.”

Peter Allaart, Executive Vice President, Global Manufacturing, thyssenkrupp Elevator, comments: “We’re proud to have been able to inaugurate and start ramping up this new facility in such a short time period, as the localisation of elevator manufacturing is considered crucial for the expansion of our business in India, and has been thyssenkrupp’s plan for many years.”

He continued, “It is not only manufacturing but also about nurturing talent; the new seed campus training center will play an important role both in supporting the development of the local area, and contributing to wider Indian goals of localising talent in the country”.

By 2020, it is predicted that India will have 58 urban conglomerations and feature two of the world’s 20 global megacities (New Delhi and Mumbai). Both new skyscrapers and large-scale redevelopment of existing properties are driving construction to support continued population growth across the country’s urban landscapes. With efficient mobility being a key concern in this renewed city space, it is no surprise that India is the fastest growing elevator market in the world.

CommScope’s High Speed Migration Platform Prepares Data Centre Managers for Increased Bandwidth

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CommScope’s High Speed Migration portfolio works for duplex and parallel applications. Image courtesy of CommScope.

As the world embarks on a potential fourth Industrial Revolution, it is the 30 to 50 billion connected devices that will spur the unprecedented growth in bandwidth. The next few years are critical to building the networks that will meet the demand.

In anticipation of this need, CommScope, which offers communications network infrastructure solutions, is introducing its High Speed Migration platform that assists data centre managers with building faster, more agile, high-density migration plans.

“With our High Speed Migration solutions, we’re able to help data centre managers accelerate the growth of their DC capacity and the speed of their digital transformation initiatives,” said John Schmidt, vice president of Global Data Centre Solutions at CommScope. “We are quickly moving from 10Gb/s and 40Gb/s to 100Gb/s, 400Gb/s and beyond. The more data consumers and network users need, the more services they expect, the more critical speed becomes. This is a global phenomenon and one of the top challenges that data centre managers will face.”

CommScope’s High Speed Migration portfolio works for duplex and parallel applications and allows customers to decide on the best approach to architecture. It also supports higher speeds and emerging applications without having to rip and replace. More than that, the platform allows CommScope to act as a trusted partner with our highly trained team of network architects who understand a customer’s business needs and provides insight to future data centre ecosystems and technology trends.

The following innovative solutions are part of the first phase of the High Speed Migration platform and support current and future high-speed applications:

  • MPO connectivity options: 24-fibre connections that ensure lowest first cost duplex deployments with a single connection, 12-fibre to support the seamless expansion of legacy 12-fibre infrastructures, and 8-fibre support QSFP technologies, providing for customers utilising this parallel optic configuration.
  • Fibre optic panels: Ultra- and high- density panels that simplify management of duplex and parallel ports for dynamic migration and flexibility.
  • Ultra-Low Loss (ULL) performance: Ultra-low loss pre-terminated components enable longer link spans with more connectivity options and guaranteed support for attenuation-sensitive applications.
  • LazrSPEED® WideBand OM5: Part of the flagship CommScope SYSTIMAX® portfolio most recently designated OM5 by the ISO/IEC. It enhances the ability of short-wavelength division multiplexing to provide at least four-fold increases in usable bandwidth while maintaining backward compatibility with legacy multimode fibre.
  • imVision®: The automated infrastructure management system (AIM) that gives oversight and control to SYSTIMAX physical network connectivity solutions.

As part of CommScope’s entire High Speed Migration strategy, solutions include all fibre types (multimode and single mode), intelligence and customised connectors for all data centres.

CommScope’s high-speed migration services provide a bridge between current and future demand. Image courtesy of CommScope.

Delivering connectivity resources at scale has become a competitive differentiator, per Jennifer Cooke, research director in IDC’s Datacentre Trends and Strategies group. Digital transformation initiatives are built on making data-driven decisions, and the ever-increasing need for speed will challenge network and data providers soon.

“Preparing to meet this challenge requires not only investment, but a strategy and vision to transition when and where resources are needed,” said Cooke. “CommScope’s high-speed migration services meet a critical need in the market by providing a bridge between current and future demand and supporting a strategic vision for data centre and network transformation.

ADB Backs Sunseap’s Plan to Build Cambodia’s First Large-Scale Solar Farm

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Electricity tariffs in Cambodia are higher than those in neighbouring countries.

The Asian Development Bank (ADB) has backed Singapore’s Sunseap Group’s project to build Cambodia’s first large-scale solar power project under a long-term agreement with Electricité Du Cambodge (EDC).

ADB’s Private Sector Operations Department (PSOD) will provide Sunseap Asset (Cambodia) with a debt-financing package of US$9.2 million. The package includes co-financing from a private sector financial institution through ADB’s B Loan program and a concessional loan from the Canadian Climate Fund for the Private Sector in Asia (CFPS). The CFPS loan was instrumental in assisting the sponsors to overcome some of the early mover risks and cost premiums associated with a first-of-its kind project such as this.

The project is located near Bavet, a special economic zone in the Svay Rieng province, and is being implemented through a public-private partnership (PPP) arrangement. As part of the project, Sunseap entered into a 20-year solar power purchase agreement (PPA) with EDC.

Sunseap, one of the largest sustainable energy providers in Southeast Asia, won the tender last year. It was Cambodia’s first competitively bid renewable energy IPP (Independent Power Producer) project. This marks Sunseap’s third foray into the international market after developing projects in India and Malaysia.

The solar farm is expected to begin operations in August 2017. Once completed, it will have an installed capacity of 10 megawatts and be able to meet roughly a quarter of Bavet City’s local energy demand, half of which is currently being met through power imports from neighbouring Vietnam. The project will also help reduce greenhouse gas emissions by 5,500 tons of carbon dioxide equivalent (CO2) annually. In addition to providing more reliable power supply in rural areas, the project is expected to generate a range of new skilled and unskilled jobs for the local community.

“We are honoured to have received the support of ADB as we embark on this large-scale project. Cambodia is a fast-growing market with vast potential for solar development,” said Frank Phuan, Founder and Director of Sunseap Group.

“While electricity consumption in Cambodia has increased significantly over the years, almost half of the country’s population currently has no access to stable, affordable electricity. Through this partnership, people in rural Cambodia will gain access to a precious commodity that many in the urban developed world take for granted.

“This project marks our entry into the rapidly developing Greater Mekong Subregion market. Our focus is on developing projects in the region that are sustainable in the long term at grid parity. We hope this project will help pave the way for future utility-scale solar projects as well as greater collaboration between the ADB and Sunseap in the region.”

“ADB is committed to working with companies like Sunseap to support our strategic agenda for environmentally sustainable inclusive growth,” said Christopher Thieme, ADB’s Deputy Director General for Private Sector Operations.

“ADB’s leading role in financing this project will help demonstrate the benefits of increasing Cambodia’s power supply through PPPs using local, renewable energy sources. It will also signal to the government, investors, and international financiers that private sector-led infrastructure investments can be undertaken successfully in a transparent manner, at a competitive price, and with a sound financing package.”

In Cambodia, the electrification rate grew to 55 percent in 2015, up from 20 percent in 2007. However, electricity coverage is a challenge especially for those in rural areas. Electricity tariffs in Cambodia are higher than those in neighbouring countries, mainly due to the high cost of fossil fuel-based generation and the fragmented power supply system in the country.