The Japan International Cooperation Agency (JICA) signed a project finance loan agreement with E Smart Transport Company Limited of Thailand on April 27. The project, financed by Energy Absolute Public Company Limited (Thailand), the sponsor company, will introduce 27 electric ferries on the Chao Phraya River in the capital city of Bangkok that do not emit air pollutants, thereby contributing to improving air pollution and the urban environment in the Bangkok metropolitan area. The project will contribute to the improvement of air pollution and the urban environment in the Bangkok metropolitan area. This project is the first large-scale introduction of electric ferries on a commercial basis in the ASEAN region. The project will be co-financed by the Asian Development Bank (ADB), the Clean Technology Fund (*1) managed by the ADB, and the Export-Import Bank of Thailand.
Bangkok is heavily dependent on diesel-powered ferries, public buses, and gasoline-powered cars for transportation, which has led to serious urban environmental problems such as air pollution and traffic congestion. JICA has been supporting clean public transportation and air pollution countermeasures in the Bangkok Metropolitan Area through the provision of yen loans for the development of an urban railway, the formulation of a transportation development plan for the Bangkok Metropolitan Area, and technical assistance for the prevention and reduction of air pollution such as PM2.5.
On the Chao Phraya River, a major river that runs through Bangkok, approximately 50,000 people (2019. The diesel ferries used by approximately 50,000 passengers (in 2019, the level before the Corona disaster) every day emit nitrogen oxides (NOx) and PM2.5, which are one of the factors contributing to air pollution. This project aims to introduce and operate an electric ferry on the Chao Phraya River to contribute to improving air pollution and urban environmental problems in the Bangkok metropolitan area, and to contribute to SDG (Sustainable Development Goals) Goal 11 (Create a livable city), 13 (Take concrete measures against climate change), and 17 ( Partnerships to Achieve the Goals).
Energy Absolute Public Company Limited is a leading company in the field of alternative energy in Thailand that is involved in solar and wind power generation, clean energy production, and the development of electric vehicle charging stations. It is expected that this project will lead to the popularization of electrification of other modes of transportation in Bangkok.
This project is the first direct overseas investment loan for Thailand since JICA resumed its overseas investment in 2012, and also contributes to the promotion of green investment under the ASEAN Investment and Loan Initiative (*2).
(*1) The Clean Technology Fund provides funds for projects in developing countries that are highly effective in reducing greenhouse gas emissions.
© Source JICA