The World Bank and the International Finance Corporation (IFC) have proposed to offer financial support worth up to US$700 million for renewable energy projects in Thailand. The funds will be made available through the World Bank’s Clean Technology Fund and the IFC to support development of Thai renewable energy projects. Detailed terms and conditions have yet to be released, but it has been reported that the support will be in a form of concessionary interest rate (between 0.5 per cent and 2.0 per cent) loans, with a repayment term of 20 to 40 years. In addition, the World Bank and the IFC will provide technical support to the loan applicants, and will also coordinate the sale of carbon credits in the market.
The World Bank has been invariably active in promoting Thai renewable energy and CDM projects. In June 2009, it signed an agreement with Thailand’s Chiang Mai University to purchase carbon credits from bundled small CDM projects consisting of 36 local swine farms, making Thailand the fifth country to sign a deal of this type with the World Bank after Mexico, Vietnam, China and Bangladesh.