The government has successfully secured a US$200 million (~฿6.69bn) loan package from the World Bank to drive investments in clean energy and low-carbon urban development, following up on the momentum generated by last week’s annual IMF-World Bank meetings in Bangkok.
Deputy Government Spokesperson Lalida Periswiwatana announced on Sunday that the focus is on driving clean energy funding and low-carbon development while ensuring a just transition for small and medium-sized enterprises (SMEs), workers, farmers and local communities.
Several memoranda of understanding (MoUs) were signed on October 17, aimed at catalysing environmental investment mechanisms and funding models.
Finance Minister Ekniti Nitithanprapas held talks with World Bank Group President Ajay Banga on low carbon cities and energy security. Their discussions centered on low-carbon urban development and carbon market initiatives supported by a US$200 million loan facility from the World Bank.
The loan, guaranteed by the Ministry of Finance, will be channeled through the Export-Import Bank of Thailand (EXIM Bank) to boost energy efficiency in public buildings and industrial areas.
The initiative will utilise Energy Service Companies (ESCOs) to finance up-front energy improvements, allowing participating agencies and organisations to repay investment costs over time.
This structure reduces initial capital burdens for pilot projects across Bangkok and Industrial Estate Authority of Thailand (IEAT) zones.
Key upgrades include rooftop solar panel installations, electrical system overhauls in schools, hospitals and district offices, as well as public street lighting modernisation.
