BANGKOK, July 29 (Bernama) -- The Asian Development Bank has agreed to grant US$70 million (around Bt2 billion) for construction of the Lopburi solar power plant, one of the world's largest solar photovoltaic (PV) projects, reports Thai news agency (TNA) Thursday.

It is the first project for which ADB has given support under its plan to promote alternative energy consumption around the world in a bid to help reduce global warming.

Lakshmi Venkatachalam, ADB vice president, Private Sector and Co-financing Operations, said Thailand has great potential for alternative energy production. Its government had a clear policy to promote alternative energy.

She said ADB is considering giving financial support to alternative energy projects worldwide in a bid to help reduce global warming and encourage sustainable development.

The Lopburi solar project involves the construction of the world's largest solar power plant in Thailand's central province of Lopburi.

The ADB will extend a long-term loan of US$$70 million or around Bt2 billion and US$2 million in grant assistance to building the first phase of the solar power plant with a production capacity of 73 megawatts.

In addition, it purchased 6,000 tonnes a year of carbon credits.

For loans of more than Bt3 billion, she said Kasikornbank, Bangkok Bank, and Siam Commercial Bank would together lend funding for portions of the first phase of the construction in August.

The second phase of the project has a production capacity of 84 million watts and requires a total investment of Bt9.2 billion. The plant will be commercial launch in 2011.

The project is owned by Thailand's National Energy Development Co, whose shares are held equally by CLP Thailand Renewable Limited, Diamond Generating Asia Limited, and Power Plant Energy.(RM1=Bt10.09)

-- BERNAMA