Mekong Brahmaputra Clean Development Fund, LP

Extended Annual Review Report

Project Number: 43924-014 Investment Number: 7304 August 2021

Mekong Brahmaputra Clean Development Fund, L.P.

(Regional) This is an abbreviated version of the document, which excludes information that is subject to exceptions to disclosure set forth in ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS

Currency units – baht (B) dong (D) kip (KN) riel (KR)

At Appraisal At Project Review 27 October 2009 30 June 2020

B1.00

– $0.0299580578

$0.0323729362

$1.00 – B33.380001 B30.890000 D1.00 – $0.0000560067 $0.0000431183 $1.00 – D17,855.000000 D23,192.000000

KN1.00 $1.00

KR1.00 $1.00

– – – –

$0.0001176678 KN8,498.500000 $0.0002395783 KR4,174.000000

$0.0001107090 KN9,032.690000 $0.0002442599 KR4,094.000500

ABBREVIATIONS

ADB – Asian Development Bank ATCE – ATC Enviro Co., Ltd. COVID-19 – coronavirus disease DCCD – Dragon Capital Clean Development Investments Ltd. DCG – Dragon Capital Group Limited DMC – developing member country DMF – design and monitoring framework EDL-Gen – Electricité du Laos Generation, Plc. ESGMS – environment, social, and governance management system FinnFund – Finnish Fund for Industrial Cooperation FMO – Nederlandse Financierings-Maatschappij voor

Ontwikkelingslanden NV (the Netherlands Development Finance Company)

GAEA – Global Action for Environmental Awareness Ltd GMS – Greater Mekong Subregion Lao PDR Lao People’s Democratic Republic m3 – cubic meter PPWSA – Phnom Penh Water Supply Authority, Plc. RRP – report and recommendation of the President Song Ong – Song Ong Power Joint Stock Company Symbior – Symbior Elements Holdings Limited Tam Long – Tam Long Power Joint Stock Company US – United States

NOTE

In this report, "$" refers to United States dollars.

Vice-President Ashok Lavasa, Private Sector Operations and Public–Private Partnerships

Director General Suzanne Gaboury, Private Sector Operations Department (PSOD) Director Janette A. Hall, Private Sector Investment Funds and Special Initiatives

Division (PSIS), PSOD Team leader

Stefan Hruschka, Unit Head, Project Administration, Portfolio

Management Division (PSPM), PSOD

Team members David Barton, Senior Investment Specialist, PSIS, PSOD Susanna Irwan, Consultant, PSPM, PSOD Manfred Kiefer, Senior Economist, Private Sector Transaction Support

Division (PSTS), PSOD Jose Manuel C. Limjap, Consultant, PSPM, PSOD Socorro L. Patindol, Environmental Consultant, PSTS, PSOD Arlene Ponce De Leon Porras, Senior Safeguards Officer, PSTS, PSOD Raneliza Deguia Samiano, Senior Social Development Officer

(Safeguards), PSTS, PSOD Danilo A. Songco, Social Consultant PSTS, PSOD Grachelle Talicuran, Associate Safeguards Officer (Environment), PSTS,

PSOD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

BASIC DATA i

EXECUTIVE SUMMARY ii

I. THE PROJECT 1

A. Project Background 1 B. Key Project Features 2 C. Progress Highlights 3

II. EVALUATION 4

A. Project Rationale and Objectives 4 B. Development Results 4 C. ADB Additionality 7 D. ADB Investment Profitability 8 E. ADB Work Quality 8 F. Overall Evaluation 8

III. ISSUES, LESSONS, AND RECOMMENDED FOLLOW-UP ACTIONS 9

A. Issues and Lessons 9 B. Recommended Follow-Up Actions 9

APPENDIXES 1. Fund’s Investors and Portfolio Investment 10 2. Results for Project Contributions to Private Sector Development and ADB Strategic

Development Objectives 11 3. Development Impact 15

i

BASIC DATA Mekong Brahmaputra Clean Development Fund, L.P.

(Investment No. 7304 – Regional)

Key Project Data

As per ADB Investment Documents

($ million)

Actual

($ million) Total Project Cost (fund size) ADB Equity Investment:

Committed Disbursed (as of September 2020) Received (as of September 2020)

100.00

15.00

40.65

10.15 7.07 8.00

Note: Numbers may not sum precisely because of rounding.

ADB = Asian Development Bank.

Project Screening, Appraisal Structuring, Monitoring and Supervision Date Concept Clearance Approval Board Approval Financial Agreements Signed by ADB Fund’s First Closing Fund’s Final Closing First Disbursement Latest Monitoring Report

28 July 2009 16 December 2009

6 July 2010 6 July 2010 6 July 2011

2 August 2010 30 September 2020

Project Administration and Monitoring Number of Missions

Number of Person-Days

Operation Monitoring Missions Extended Annual Review

Attended all meetings, through ADB’s representative in Advisory Committee

None

0

ADB = Asian Development Bank.

No mission was fielded for the extended annual review because of the coronavirus disease (COVID-19) pandemic.

ii

EXECUTIVE SUMMARY In December 2009, the Board of Directors of the Asian Development Bank (ADB) approved the lesser of a $15 million equity investment in Mekong Brahmaputra Clean Development Fund, L.P. or 25% of the total capital commitments to the fund, a private equity fund established to promote clean energy and environment sectors in selected ADB developing member countries (DMCs) in the Greater Mekong Subregion (GMS) and South Asia. ADB’s investment in the fund was driven by the feedback from the ADB’s evaluation study of the energy sector in the GMS and private equity fund operations in 2008 and 2009, promoting clean energy investment, leveraging ADB’s resources to mobilize financing from the private sector and other development partners, and strengthening connectivity among the GMS countries through infrastructure development. The fund mobilized $40.65 million in commitments, short of its target fund size of $100 million. The fund’s life was intended for 10 years and has been extended for 1 year, until 6 July 2021. The fund invested $24.3 million in six companies in Cambodia, the Lao People’s Democratic Republic (Lao PDR), Thailand, and Viet Nam, in hydropower plants, a solar power plant, potable water supply, and solid waste management services. As of 30 September 2020, there was no write-off and the fund had exited five investments. The project has delivered strong development results and supported economic performance of the stakeholders (governments, end-consumers, and private sector via employment). The fund has (i) provided improved infrastructure access in respective countries, e.g. electrification and potable water; (ii) set national standards, e.g. for solid waste management in Cambodia; (iii) upgraded operating efficiency; (iv) strengthened safeguards and corporate governance standards; (v) paved the way for privatization of state-owned companies; (vi) invested at the beginning of Cambodia’s and the Lao PDR’s stock exchange establishment; and (vii) introduced climate benefits in Viet Nam. After the fund was established, at least five additional private equity funds were created in the region. However, the fund did not meet the target of capital commitments raised, amount of investment, and pipeline volumes. Quantitatively, the fund generated positive net interim rates of return (IRR) in United States (US) dollar terms, on a gross and a net basis. Four out of six investees generated positive equity returns. The fund’s investee companies generated more than 900 additional jobs, provided positive climate benefits from renewable energy, water supply, and solid waste management companies, and paid tax to the respective governments. The fund was among the first institutional investors in the Cambodia and Lao PDR stock exchanges. The fund manager has established the fund’s environment, social, and governance management system; ensured that investee companies met national laws of host countries and ADB’s safeguards requirements; and reported yearly to ADB on environmental and social safeguards issues. ADB’s investment through the fund encouraged other multilateral and bilateral development partners to bring in more capital to the fund. This fund also promoted regional cooperation with more private equity establishments and other neighboring countries invest ing in the GMS, particularly in clean energy investment. ADB decided that Dragon Capital Clean Development Investments Ltd. (DCCD) was best equipped for clean energy investing in the GMS as a subsidiary of the Dragon Capital Group

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(DCG). ADB provided strategic advice and execution, project design and development, and networking and introductions to individuals and institutions in the region. ADB adequately monitored the independence of the fund from DCG’s control to ensure there is no conflict of interest in relation to a new fund being launched by DCG. The active role of ADB’s representative in the advisory board contributed to the close and effective monitoring of the fund’s investment and performance.

I. THE PROJECT

A. Project Background

1. On 16 December 2009, the Board of Directors of the Asian Development Bank (ADB) approved an equity investment in Mekong Brahmaputra Clean Development Fund, L.P. of up to $15 million but not to exceed 25% of the fund’s total capital commitments and not resulting in ADB being the single largest investor in the fund.1 The fund was established to invest in clean energy and environment sectors in selected ADB developing member countries (DMCs) along Mekong river in the Greater Mekong Subregion (GMS) and along Brahmaputra river in South Asia.2 The investments were mainly in companies engaged in renewable energy, energy efficiency, water conservation, and waste recycling projects.

2. Aggressive development throughout Asia has put substantial pressure on the region’s resource base and has strained the buffering capacity of the environment. Despite its significant contributions to global climate change and environment, investment in clean energy projects in ADB’s DMCs in 2009 was low, primarily because (i) energy policy frameworks did not adequately support or encourage clean energy projects and (ii) the countries had limited financial and technical expertise in this sector. On the policy side, ADB’s public sector departments proactively worked with the country governments in the GMS and South Asia through regional cooperation strategies and programs. However, because of the DMC governments’ limited resources, the private sector must also mobilize funds for energy as institutional and regulatory reforms were made, for instance through long-term private equity investment. Thus, to achieve energy security, the public and private sectors should complement each other in investing in clean energy in the target DMCs. In 2008, 24% or about 70 million people in the GMS had no access to electricity. 3 In Nepal, only 48% of the population in 2007 had access to electricity and other modern forms of energy.4 In Bangladesh and Bhutan, half of the population lacked access to electricity.5

3. The initiatives in the project were driven by the feedback from ADB’s evaluation study of energy sector in the GMS and private equity fund operations.6 Key recommendations of ADB’s evaluation study of the energy sector in the GMS released in 2008 and 2009 are (i) to promote other energy investments besides power trading and focus more attention on clean energy investments; (ii) to expand cofinancing by leveraging ADB’s resources to mobilize financing from the private sector and other development partners; and (iii) to strengthen connectivity among the GMS countries through infrastructure development. Key recommendations of ADB’s evaluation study of private equity funds include (i) strengthening country programming arrangements so there is better coordination in development of the nonbank financial sector and (ii) articulating an operational strategy that sets out targets in underinvested countries and sectors.7

1 ADB. 2009. Report and Recommendation of the President to the Board of Directors on Proposed Equity Investment

in Mekong Brahmaputra Clean Development Fund, L.P. Manila. 2 The target countries in South Asia were Bangladesh, Bhutan, Nepal, and Sri Lanka. 3 Footnote 1, para. 7. Based on ADB’s evaluation study (footnote 6) on energy sector in the GMS published in 2008,

83% of all households in Cambodia, 80% in the Lao People’s Democratic Republic (Lao PDR), and over 50% in Viet

Nam still used wood for fuel. 4 ADB. 2007. Country Partnership Strategy Midterm Review: Nepal, 2005‒2009. Manila. 5 Footnote 1, para. 9. 6 ADB. 2008. Evaluation Study: Energy Sector in the Greater Mekong Subregion. Manila; and ADB. 2009. Learning

Curves: Energy Sector in the Greater Mekong Subregion. Manila. 7 ADB. 2008. Special Evaluation Study: Private Equity Fund Operations. Manila.

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B. Key Project Features

4. Legal structure. The fund is a limited partnership company registered in Guernsey, the Channel Islands, incorporated on 6 July 2010, and operates as a closed-end fund. The fund had 1 year for final closing, which was on 6 July 2011. The fund had an investment phase of 5 years from the first closing date or up to 6 July 2015 and a divestment phase of 5 years. The term of the fund was 10 years until 6 July 2020 and could be extended by two 1-year periods. The fund’s term has been extended by 1 year until 6 July 2021.

5. Investment strategy. The fund was intended to provide equity (primarily) or debt to at least 10 clean energy and environment projects or companies by 2015, with $3 million‒$7 million investment.8 The investments should meet the “triple bottom line” principles of “people, planet, and profit”—values that required each investment to have a positive impact on the environment and to make contributions to sustainable development. The investment activities were focused primarily on tier 1 countries (Nepal, Thailand, and Viet Nam) where both mature and early-stage clean energy projects were actively developed and tier 2 countries (Bangladesh, Bhutan, Cambodia, the Lao People’s Democratic Republic [Lao PDR], and Sri Lanka) in a relatively early stage of clean energy development. The target subsectors were (i) 50%‒65% in renewable energy (hydro, solar, wind, biomass, biogas); (ii) 20%‒25% in energy efficiency; and (iii) 15%‒20% in conservation (natural resource conservation, industrial wastewater, solid waste treatment, and recycling).9 6. Sponsor. The fund’s sponsor is Dragon Capital Group Limited (DCG), which has had long experience in integrated asset management with a focus on Viet Nam’s capital markets. Established in 1994, DCG is among the largest and most experienced asset managers in Viet Nam, with total assets in excess of $1 billion in 2009. DCG, as of 2009, was 70% owned by its management, 15% by its employees, and 15% by international institutions such as the International Finance Corporation and Proparco.10 Besides the Mekong Brahmaputra Clean Development Fund, L.P., DCG had six funds under management in Viet Nam: three public market funds, one fixed income fund, one natural resources fund, and one property fund. Those funds are listed on exchanges in Ireland, Luxembourg, and London.

7. Fund manager. Dragon Capital Clean Development Investments Ltd. (DCCD) was registered in Guernsey, the Channel Islands on 29 June 2009, is a subsidiary of the Dragon Capital Group, and is the fund manager of the Mekong Brahmaputra Clean Development Fund, L.P. (general partner). The fund was the first fund managed by DCCD.

8. Limited partners. The limited partners and their equity stakes in the fund are as follows: (i) ADB (24.97%), (ii) DCG (12.30%), (iii) Netherlands Development Finance Company (FMO) (30.75%), (iv) Finnish Fund For Industrial Cooperation (FinnFund) (19.68%), and (v) TR Capital (12.30%). TR Capital took over the stake owned by Belgian Investment Company for Developing Countries on 28 December 2017.

9. Fees. The management fee was 2.0% of the committed capital per annum during the investment period, and thereafter, 2.0% on outstanding invested capital less write-offs. Should

8 Footnote 1, paras. 10 and 58. Debt instruments were allowed, subject to their providing a return very similar to that

of an equity investment, such as the fund’s target return was not compromised. 9 Footnote 1, para. 44. 10 International Finance Corporation invested in DCG in 2001 and owned 9.11% of DCG as of 2009. In 2014,

International Finance Corporation sold its shares, but in 2016 provided $50 million debt to DCG. Proparco is a

subsidiary of Agence Française de Développement and is one of the bilateral development banks working closely

with ADB on private equity fund investments across Asia.

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the fund achieve profitable exits, the fund manager will receive 20% of the profits after returning full capital of investors plus a 7.5% hurdle rate.

10. Corporate governance. The fund has an advisory committee comprising four representatives of the fund’s investors, including ADB. The advisory committee meets generally four times a year after the result of the quarterly report becomes available. The fund also has an investment committee approved by the advisory board. The committee comprises five members, four of whom are external, independent committee members with extensive experience in the clean energy and investment sectors. Each project normally requires three investment committee meetings and the committee meets physically once a year.

C. Progress Highlights

11. Fundraising. The fund had its first closing on 6 July 2010, raising a total of $40.65 million in capital commitments. However, the general partner was unable to raise additional capital and had a final closing in July 2011 with a fund size below its $100 million target. As such, ADB only committed $10.15 million for a 24.97% shareholding.

12. Investment progress. Given the small fund size, the general partner saw the need to balance the portfolio investments between established, cash flow positive investees and greenfield or early-stage projects. This was reflected in the fund’s initial deals pipeline which included two listed companies, two in the growth stage, and six in early stage. The fund suffered from low deployment rate, with only 47.0% of committed capital invested by the end of the investment phase in July 2015 and up to 59.9% by the end of the extended investment phase in December 2016. The investment phase was extended to give the fund time to execute five potential investments that were already approved by the investment committee. However, only two of the five potential investments were closed during the extended investment period.

13. Investment portfolio. The fund invested approximately $24.35 million out of its $40.65 million committed capital in six companies with the investments in the two listed companies—Electricité du Laos Generation, Plc. (EDL-Gen) and Phnom Penh Water Supply Authority (PPWSA)—accounting for 43.4% of total investments. By sector, four are in renewable energy (85.1% of total investments), one in water (10.9%), and one in waste management (4.0%).

14. Divestment. The portfolio companies, in general, achieved good operational results and were not distressed. As of 30 September 2020, the fund had exited fully five of its investments. Symbior Elements Holdings Limited (Symbior), Tam Long Power Joint Stock Company (Tam Long), and Song Ong Power Joint Stock Company (Song Ong) were divested at prices well above the investment cost. Global Action for Environmental Awareness, Ltd. (GAEA) and PPWSA were also fully divested, albeit at a loss. GAEA’s operations and profitability were adversely affected by the coronavirus disease (COVID-19) pandemic. The absence of tourists affected the company’s waste management operations in Siem Reap. Although PPWSA’s operations have been stable and benefited from the increase in water volumes, low liquidity in Cambodian stock market affected its share price. The fund also sold some of its shares in EDL-Gen. throughout 2018.. The limited partners agreed to extend the fund term by one year to conclude divestment of the fund’s remaining assets.

15. With the aforementioned divestments, full return of ADB’s contributed capital has been achieved. ADB has received $8.0 million in distributions or 1.13 times its $7.07 million contributed capital. ADB still has an estimated residual net asset vaIue of $0.88 million from the remaining investment.

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II. EVALUATION

A. Project Rationale and Objectives

16. ADB’s investment in the fund was intended to promote clean energy and environment protection in target countries in the GMS and South Asia. The fund should directly and indirectly help improve local economies within the target subregions and promote the use of clean technology to reduce greenhouse gas emission, ozone-depleting substances, fugitive emissions, and other pollutants in the subregions.

17. The fund initiated operational improvement in investees contributing to profitable and sustainable enterprises in the sectors that need them the most (para. 22). ADB’s contribution to this type of initiative helps its DMCs to implement their respective country-specific private sector development strategies.

18. While the overall alignment with objectives was strong, the fund did pursue a rather ambitious sector and regional coverage mandate, given the limited experience of the fund manager team, especially in South Asia. DCG’s successes prior to the fund had rested on investment funds in Viet Nam and the fund was their f irst private equity fund venture targeting early-stage companies in the GMS and in South Asia.

B. Development Results

1. Contributions to Private Sector Development and ADB Strategic Development Objectives

19. Compliance with ADB strategic development objectives. Investments in hydropower plants (three investees) and a solar power plant (one investee) supported the GMS cooperation strategy for improved energy security, consistent with the country strategies and business plans that underline renewable energy and access through rural electrif ication.11 Investments in potable water supply and solid waste management met the sustainable resource development strategy in the GMS cooperation and greater access of water and waste management in the midst of urbanization.12 20. Indicators in the design and monitoring framework (DMF) were partially achieved (para. 21). The project has greatly contributed to private sector development and ADB’s strategic development objectives (para. 22 and Appendix 2).13

21. Partially achieved performance targets in the design and monitoring framework. The fund:

(i) raised $40.65 million capital commitments instead of the $80 million target; (ii) drew down $21.76 million by 2014 instead of the targeted 100% of committed

capital and during the investment period, which was through 2016, invested $24.35 million out of $40.65 million capital raised;

11 ADB. 2008. Regional Cooperation Operations Business Plan: Greater Mekong Subregion, 2009‒2011. Manila; ADB.

2008. Greater Mekong Subregion‒Vientiane Plan of Action, 2008‒2012. Manila; ADB. 2007. Midterm Review of the

Greater Mekong Subregion Strategic Framework, 2002‒2012. Manila. 12 ADB. 2008. Country Operations Business Plan: Cambodia, 2008‒2010. Manila; ADB. 2008. Country Partnership

Strategy: Sri Lanka, 2009‒2011. Manila; ADB. 2007. Country Partnership Strategy: Thailand, 2007‒2011. Manila;

ADB. 2008. Country Operations Business Plan: Thailand, 2008‒2010. Manila; and ADB. 2008. Country Operations

Business Plan: Viet Nam, 2009‒2011. Manila. 13 Footnote 1, Appendix 1: Design and Monitoring Framework.

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(iii) screened and evaluated about 50 deals, short of 150 deals in the pipeline targeted in the DMF;

(iv) made six investments in clean technology projects, short of the minimum ten projects targeted in the DMF;14

(v) raised about $143 million additional debt and equity from other sources, below the targeted $160 million in the DMF (Appendix 3);15 and

(vi) saw more than 900 additional jobs created by the fund’s investee companies, far exceeding the target of 200 jobs (Appendix 3).

22. Contribution to private sector development and ADB strategic development objectives. The fund has had significant impact in improving standards (safeguards, corporate governance, anti-money laundering/anti-terrorism), increasing capacity of renewable energy, water supply, and waste management in respective countries, while inducing catalytic elements, job creation, environment sustainability, and regional integration. Fund investees have made several contributions:

(i) GAEA provided improvements to the existing solid waste management system in the country, such as sorting and segregating, recycling, and establishing a waste transfer center and good environmental, health and safety practices.

(ii) Tam Long hydropower plant in Viet Nam received carbon credit for its emission reduction.

(iii) EDL-Gen was amongst the first initial public offerings on the Lao Stock Exchange and became the first corporation in Cambodia, the Lao PDR, Myanmar, and Viet Nam to successfully issue a Thai baht-denominated bond in Thailand in 2014.

(iv) PPWSA was the first initial public offering on the Cambodian Stock Exchange, with 85% ownership retained by the Ministry of Economic and Finance.

(v) Three hydropower plants and one solar plant improved rural electrif ication and supported clean energy initiatives.

2. Economic Performance

23. The economic viability could be evaluated at investee level which was not possible in advance because of the uncertainty about what investments would be implemented. As of September 2020, the fund’s gross internal rate of return (IRR) was positive and four of six investee companies have positive equity returns.

Table 1: Development Contributions from Investees Investee Development Contributions from Investees Song Ong Power Joint Stock Company (hydropower plant)

At the time of investment, Song Ong’s output capacity was 8.1 MW. During the investment, Song Ong considered a 3 MW extension but deemed it infeasible because of the impact to a nearby irrigation reservoir project. Song Ong avoided 29,500 tons CO2/year (for 2017 only). The corporate tax paid annually was $493,992 (as of 31 Dec 2017).

Symbior Elements Holdings Limited (solar power plant)

At the time of investment, Symbior had a 1 MW solar plant. The company built several very small solar power plants aggregating to 29 MW. Symbior avoided 820 tons CO2/year (as of 30 Jun 2017). During the investment period, 28 additional jobs were created.

Tam Long Power Joint Stock Company (hydropower plant)

The investment was used to finance a greenfield 29 MW hydropower plant. Tam Long Power avoided 41,590 tons CO2 / year (as of 30 June 2017). The corporate tax paid annually was $963,591 (as of 30 Jun 2017).

14 The targets in the DMF were based on $80 million capital commitments. 15 Footnote 15.

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EDL-Gen Generation PLC (EDL-Gen) (hydropower plant)

During the investment period (up to October 2020), EDL-Gen’s power generating capacity increased from 387 MW to 1,104 MW from ten hydropower plants with an additional 3,753 MW from joint ventures. EDL-Gen avoided 2,006,120 tons of CO2 (for 2019 only). The corporate tax paid annually was $11,909,961 (as of 31 Dec 2019). During the investment period up through 2019, 293 additional jobs were created.

Global Action for Environmental Awareness Ltd (GAEA) (solid waste management services)

During the investment period (up to October 2020), GAEA constructed a new waste transfer station and performed an EIA for a new landfill in accordance with Cambodian–European Union guidelines. It hauled 55,000 tons of municipal waste annually in the beginning of investment and increased to over 100,000 tons as of February 2019. The fund helped with the organizational restructuring and the internal process improvements, e.g., enterprise resource planning implementation. GAEA collected 375 tons/day municipal solid waste (as of February 2019). The corporate tax paid annually was $56,385 (as of 31 Dec 2019). During the investment period, 82 additional jobs were created.

Phnom Penh Water Supply Authority (PPWSA) (potable water supply) a

During the investment period, PPWSA increased the capacity of its distribution network from 320,000 m3/day in 2012 to 580,000 m 3/day in October 2020. Average monthly water consumption for 2019 was 16,964,111 m3. The corporate tax paid annually was $3,883,159 (as of 31 Dec 2019). During the investment period, 486 additional jobs were created.

CO2 = carbon dioxide, m3 = cubic meter, MW = megawatt. a PPWSA received the 2004 Asian Development Bank Water Prize for "dramatically overhauling Phnom Penh's water

supply system and demonstrating leadership and innovation in project financing and governance." https://www.adb.org/sites/default/files/linked-documents/41403-013-sd-03.pdf

Source: Dragon Capital Clean Development Investments, Limited.

24. The fund generated substantial economic net benefits for its stakeholders: through renewable energy, higher employment, and for governments through developing the stock exchange in Cambodia and the Lao PDR and higher tax payments.

25. The investees generated substantial contributions in renewable energy, climate benefits, additional jobs, and taxes paid, as summarized in Table 1. Over the course of the fund’s economic life, more than 900 additional jobs were created by the fund’s investee companies. During 2019, the three investees paid over $15.85 million in corporate tax, leading to positive macro-fiscal implications. Details of the development impact are in Appendix 3.

3. Environment, Social, Health, and Safety Performance

26. ADB’s investment in the fund is classified as category FI under ADB’s environment policy (2002), category C under ADB’s involuntary resettlement policy (1995) and Category B under the policy on indigenous peoples (1998) when the equity investment was approved by ADB in December 2009 (footnote 1).

27. The fund manager, DCCD, has established the fund’s environment, social, and governance management system (ESGMS) to ensure that investee companies meet national laws of host countries and ADB’s safeguards requirements, and to report yearly to ADB on environmental and social safeguards issues. During the investment period from 2011 to 2019, the fund had a total of six investee companies from four countries: Cambodia, the Lao PDR, Thailand, and Viet Nam. DCCD screened and verified that all investments do not belong to the fund’s list of prohibited investments. The required environmental and social impact assessment reports have been prepared by each investee company and submitted to DCCD for review. Necessary clearance and permits have been obtained and there were no recorded or reported penalties and violations. Annual environment, social, and governance performance monitoring reports have

7

been submitted to DCCD and ADB for review from 2011 to 2020. An appropriate number of qualif ied staff members with a senior supervisor has been assigned to undertake and ensure implementation of the ESGMS policies and procedures. Detailed discussions of the description of each subproject funded by the fund are in Appendix 6.

28. Social safeguards performance. The fund’s ESGMS has an elaborate, transparent, and accountable procedure in investment screening, categorization, and monitoring for social impacts, particularly as they may involve involuntary resettlement or affect indigenous peoples. For potential investments that may have significant adverse social impact, investee companies are required to conduct a social impact assessment and prepare mitigation measures consistent with ADB social safeguards. All investee companies have developed and operationalized a grievance redress process to facilitate receipt and resolution of complaints. No report was received of violation of the fund’s social safeguards standards by investee companies. Detailed discussion is in Appendix 6.

29. The annual environment, social, and governance reports of all investee companies include updates on employee welfare and community outreach. Corporate social responsibility projects of investee companies ranged from support for community development projects and activities, community water and power facilities, environmental education, and conservation activities, and clean up campaigns.

4. Business Success

30. Between years 4 and 10 of its holding period, the fund exited from five of the six investees in its portfolio with no write-off. The total accumulated distributions delivered by the fund from sale, dividends, and repayment totaled $28.8 million. The remaining portfolio of one investee company had an estimated residual net asset value of $3.5 million as of September 2020. The ratio of total value to paid-in capital (actual capital drawn) is 1.26 times, which underlines the fund’s good performance. The fund was able to return fully the capital contributions made by the limited partners (para. 15). Dividends received from the investees also covered the fund’s operating expenses.

C. ADB Additionality

31. Catalytic and mobilizing role. ADB was able to support the fund to raise funds from private investors and other multilateral and bilateral development partners to bring in more capital to the fund (the target size of $40 million for the initial closing was achieved with ADB’s participation). The positive setting up and development of the fund have inspired private investors and other multilateral development partners to invest in and to set up similar funds and to bring more capital to the development of the DMCs. The success of this investment helped to make other private equity funds more interested in a sustainability focus and to see GMS and South Asia as attractive area with economic opportunities. There are private equity funds created in the region that have likely seen the fund as an inspiring example.

32. To support DCCD, ADB has provided (i) strategic advice and execution, (ii) project design and development, (iii) networking and introductions to individuals and institutions in the region for business expansion, (iv) financial efficiency (i.e., project financing or corporate f inancing arrangements), and (v) implementation of international best practices in the target sectors.

33. Demonstrating viability of investment in clean energy. ADB was instrumental in assisting the fund manager in conceptualizing the fund and its clean energy investment strategy. Such funds were not very common at that time. The fund was able to successfully invest in several

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renewable energy projects that (i) met or exceeded domestic environmental and social regulations and requirements; (ii) demonstrated a significant contribution to reductions in greenhouse gas emissions, ozone-depleting substances, and other pollutants; and (iii) complied with the environmental and social guidelines of ADB. Investing in this fund helped develop the capital markets in the region and helped to establish private equity funds with focus on clean energy projects as an investment class. ADB’s environmental and social safeguard policies and procedures helped guide the fund in ensuring the sustainability of its clean energy projects in Cambodia, the Lao PDR, and Thailand. The representative in the Board of the non-listed investees helps ensure the compliance with the safeguards policies.

D. ADB Investment Profitability

34. As of 30 September 2020, ADB had disbursed $7.07 million and received distributions of $8.00 million. The one company in which the fund still has an investment shows an estimated residual net asset value of about $0.88 million. 35. Notwithstanding the risks involved in the countries in which the fund invested, it has yielded a positive net IRR in US dollar terms and returned ADB’s capital investment.

E. ADB Work Quality

36. Screening, appraisal, and structuring. The sponsor, DCG, asked ADB to make an equity investment in the fund. After meetings and discussions with several potential regional fund managers in Viet Nam, and after reviewing their past performance, exist ing portfolio, and qualif ications of the sponsor, ADB concluded that this fund manager was best equipped for clean energy investing in challenging economies. ADB helped in formulating the fund’s investment strategy.

37. Monitoring and supervision. ADB is represented in the advisory board and regularly reviews and provides feedback on the company’s strategies and investee’s performance. ADB ensured that the investment team remained independent and not influenced or control led by DCG in the course of decision-making or managing the fund. In addition, ADB kept encouraging the fund manager to actively source potential deals in the tier 2 countries, instead of the fund manager’s focus on tier 1 countries. 38. The advisory board, where ADB has a representative, was active in monitoring the progress of the fund and regularly met with the general partner to discuss fundraising and deal sourcing issues. The general partner was receptive to the suggestions of the advisory board. ADB achieved the required level of internal monitoring and supervision of the fund’s activities and consistently met the internal requirements of annual reviews and reporting. During the fund’s life, ADB has kept itself updated on the fund’s investment and performance. ADB’s representative regularly attended the quarterly meeting to review the fund’s latest quarterly performance and provided timely feedback to the deal team. These reports cover material areas and are reviewed and validated by regular conversations with the project team. The fund management confirmed its satisfactory working relationship with ADB. F. Overall Evaluation

39. The transaction delivered strong stakeholder benefits.

9

III. ISSUES, LESSONS, AND RECOMMENDED FOLLOW-UP ACTIONS

A. Issues and Lessons

40. Because DCCD was a first-time fund manager, the general partner was conservative in their deal sourcing and setting due diligence hurdles, resulting in a lower deployment rate and portfolio’s concentration on renewable energy. Their conservative stance was also reflected in the valuations assigned to investments. 41. ADB could assess and review achievements against the DMF at appropriate time, particularly if the initial DMF targets were drafted based on target fund size . Several DMF indicators left no flexibility for this evaluation when the fund was unable to achieve its targeted amount. For instance, the DMF targets included investment in at least ten clean energy projects, more than 150 deals screened and evaluated, and a minimum of ten investees; these targets were set up with the expectation of $80 million raised. With the lower amount eventually raised, the DMF targets could have been revised accordingly. Additionally, the target 100% deployment of committed capital is unrealistic since a typical private equity fund would not normally achieve 100% deployment due to a 15-20% reserves set aside for fees and other fund expenses. B. Recommended Follow-Up Actions

42. No follow-up action was recommended. The fund manager completely divested the remaining investment in December 2020.

10 Appendix 1

FUND’S INVESTORS AND PORTFOLIO INVESTMENT

Table A1: Fund Investor

Fund Investor Committed Capital

($ million) Ownership (%) Asian Development Bank 10.15 24.97 TR Capital Groupa 5.00 12.30 Dragon Capital Group Limited (DCG) 5.00 12.30 Finnish Fund for Industrial Cooperation (FinnFund) 8.00 19.68 Netherlands Development Finance Company (FMO) 12.50 30.75 General partners 0.00 0.00 Total 40.65 100.00

a TR Capital Group acquired the interest previously held by Belgian Investment Company for Developing Countries

as of 28 December 2017.

Source: Dragon Capital Clean Development Investments Limited.

Appendix 2 11

RESULTS FOR PROJECT CONTRIBUTIONS TO PRIVATE SECTOR DEVELOPMENT AND ADB STRATEGIC DEVELOPMENT OBJECTIVES

Results Area Actual Achievements Justification

Potential Future

Achievements

1. Fund and investee-level PSD effects

1.1 Improved skills:

(i) Development of managerial, strategic, and

operational skills in investee enterprises (with

support from fund manager)

(ii) Improved skills in private equity deal

structuring, instruments, and ways to invest that

the fund staff can apply in follow-on funds, or

when joining new private equity groups or other

financial institutions

The fund manager has been helping

and providing guidance regarding

social, environmental, operations and

corporate governance of its investees.

The fund manager improved ESMS,

corporate governance, money

laundering and financing terrorism

standards in all investees.

Mekong Brahmaputra Clean Development

Fund L.P. checked the compliance of each

investee in the standards required by the

fund on an annual basis.

The fund manager has continuously

provided EDL-Gen recommendation on

the social and environmental aspects of

new EDL-Gen project expansion.

The fund manager supported GAEA in

organizational restructuring and provided suggestions for operational efficiency such

as through ERP and collection service

improvement.

1.2 Improved standards and business

practices:

(i) Improved ways of operating businesses and

competing

(ii) Improved standards for corporate

governance; transparency; stakeholder

relations; environmental, social, health, and safety; and energy conservation

GAEA has provided improvements to

the existing solid waste management

system in the country, such as sorting

and segregating, recycling,

establishment of waste transfer center,

and good environmental, health and

safety practices.

The fund manager introduced higher

standards of good corporate

governance principles into each

investee’s business practices, to

improve its water or waste

management and operating efficiency,

enhancing the capacity of its human

resources, and the commitment to

corporate social responsibility and the

environment.

The fund had at least one board seat

in the non-listed investees.

Aces Award – Asia’s Corporate

Leadership & Sustainability selected EDL-

Gen as one of Asia’s Best Performing

Companies in 2018.

The investee’s corporate social

responsibility program include support for community development projects and

activities, community water and power

facilities, environmental education and

conservation activities, and clean up

campaigns.

1.3 Innovation: Introduction of innovative fund

operations; or introduction of new products,

Introducing CDM in each respective

country.

Tam Long receives CDM revenue for its

emission reduction.

12 Appendix 2

Results Area Actual Achievements Justification Potential Future Achievements

services, processes, or technologies by

investee companies

1.4 Catalytic element: Improved debt or risk capital supply from local and foreign investors

for fund and investee companies

EDL-Gen paves the way for more and larger bond issuances in Thailand.

Symbior was able to expand its solar

power project.

PPWSA was able to increase its water

production capacity.

EDL-Gen became the first corporate in CLMV countries (comprising Cambodia,

Lao PDR, Myanmar and Viet Nam) to

successfully issue Thai baht-denominated

corporate bonds in Thailand in 2014

(equivalent of $197 million), followed by

EDL-Gen’s larger bond issuances in 2016

($312 million) and 2018 (equivalent of

$409 million).

Symbior invested in a 29 MW ATCE that

receives feed-in tariff in Thailand for the

very small power plant solar project.

PPWSA’s production capacity was

increased from 320,000 m3/day in 2012 to

580,000 m3/day in October 2020 through refurbishment of existing water treatment

plants.

2. PSD effects beyond fund and investee

companies

2.1 Private sector expansion: Contribution by

the fund to materially increasing the private

sector share and role in the economy through

support for privatizations or investments in new

private-sector-dominated industries

The fund entered into investment in

PPWSA and EDL-Gen at the time of

the initial public offering of the two

companies that were previously state-

owned companies.

PPWSA was the first entity to list in the

Cambodian Securities Exchange, which

opened on 18 April 2012. PPWSA

released about 15% of the firm’s equity,

while the state, represented by the

Ministry of Economy and Finance, retains

85% ownership of PPWSA.

In 2011, EDL-Gen was among the first two

companies listed on Lao PDR Securities

Exchange.

Additional divestment

of EDL-Gen and

PPSWA through

capital market

2.2 Competition: Contributions to new

competitive pressures in key investee markets

and/or in the financial sector for risk capital and

finance

These projects were considered

pioneer in respective countries; they

raise the standards for future projects.

2.3 Demonstration effects: Replication of new

ways funds or investee companies are

operated, thereby supporting transformation of

business sectors, industries, or financial

markets

EDL-Gen was able to expand quickly

by bringing in new projects through

joint ventures.

EDL-Gen invests in shares of electricity

generation projects, either by replacing

EDL as a shareholder or by starting new

joint ventures.

Appendix 2 13


2.4 Linkages: Indications that, relative to size

of investments, the fund adds notable upstream

or downstream link effects to investee

companies and/or financial markets

The fund invested in PPWSA and

EDL-Gen at the beginning of the

country’s stock exchange

establishment.

The interest of a foreign fund in the

country’s first listed entity(ies) raised the

confidence in the local market.

2.5 Catalytic element: Improved debt or risk

capital supply from local and foreign investors

to local companies and private equity funds in

countries of fund operations or beyond, with

fund contribution by (i) improving supply of risk

capital in the market; (ii) demonstrating the

merits of private equity funds to the public,

firms, banks, and others; (iii) bringing liquidity to

local stock exchanges with initial public

offerings; (iv) helping a private equity industry

take root and become more efficient along with

maturing capital markets; and (v) wider private

equity expertise via migration of fund manager

staff to other funds

The fund encouraged foreign investors

to provide financing in renewable

projects in the region.

Several funds raised were carried out

to support EDL-Gen expansion.

Investment in Symbior by the fund and

Armstrong South East Asia Clean

Energy Fund, allowing Symbior to

expand further and attract further

investment from Berkley Energy .

Beginning with 387 MW of installed

capacity in 2010, EDL-Gen has almost

tripled its power generation capacity within

8 years. As of June 2018, the company

operates 10 hydropower plants and owns

stakes in eight independent power

producers, including the first solar power

plant in Lao PDR in 2017, with a combined

installed capacity of 1,154.6 MW.

The fund and Armstrong South East Asia

Clean Energy Fund supported Symbior

Energy, to develop and operate a portfolio

of solar-power-generation projects in

Thailand (six small-scale solar-power

plants with a combined capacity of 30

megawatts).

2.6 Affected laws, frameworks, regulation:

Contribution to improved legal and regulatory

private business or sector frameworks, or

improved financial sector regulation, such as by

lobby; fund manager reports on significant

dialogue affecting reform

GAEA set the standard for handling

solid waste in Cambodia.

GAEA, being amongst the first solid waste

management services, was a pioneer in

the country.

Further refinement of

the regulations

3. Contribution to other ADB Strategic

Objectives

3.1 Inclusion.

(i) Improved access to or affordability of

essential goods or services for the poor and

other disadvantaged groups through activities

of funded investee companies

(ii) employment generated by investee company activities for such groups and/or and

entrepreneurial opportunities through forward

and backward links to the poor and other

disadvantaged groups

(iii) improved availability of risk capital for

inclusive businesses

All three hydropower plants and a

solar power plant contributed

improved electrification.

Please see Appendix 3 for details. Further expansion

from the portfolio

14 Appendix 2


3.2 Job creation: Significant levels of

additional sustainable jobs or self-employment

created by Investee companies

Project expansions in the investees

have generated additional

employment.

As shown in Appendix 3, there were more

than 900 jobs created from the six

investees.

Possible additional

job availability as the

remaining investees

expand their

operations

3.3 Environmental sustainability:

Contributions of fund manager or investee

companies to reductions in greenhouse gas

emissions; the development, promotion or

application of clean technologies, energy

efficiency programs, or other investments

involving climate change mitigation/adaption or

other environmental improvements; improved

availability of risk capital for environmental

businesses

The reduction of greenhouse

emissions from the clean energy

investments is of critical importance

for the developing countries in the

territory as they struggle to deliver the

greenhouse gas reduction

commitments in the Paris accord.

The fund invested in three hydropower

plants (two in Viet Nam, Tam Long and

Song Ong, and one in Lao PDR, EDL-

Gen), a solar power plant in Thailand

(Symbior), a potable water supply in

Cambodia (PPWSA), and a solid waste

management services in Cambodia

(GAEA). The amount of positive

environmental impact is in Appendix 3.

Expansion of clean

development projects

in the remaining

portfolio (EDL-Gen,

GAEA, and PPWSA).

3.4 Regional integration: Project contributions

to regional cooperation and integration by

facilitating trade and intraregional investments

The fund invested in several countries:

Cambodia, Lao PDR, Vietnam and

Thailand. Investment in Symbior was

through their holding company in

Singapore.

Several projects conducted by some

investees used equipment from People's

Republic of China, e.g., Tam Long.

The Lao PDR hydropower project

exported a portion of its electricity to its

neighboring countries.

EDL-Gen engages in the generation and

wholesale of electricity to EDL-Gen to be

sold domestically and internationally.

The fund invested in different countries

has opened the opportunities of the

regional cooperation.

Further expansion

possibly supporting

the infrastructure

needs of neighboring

countries

3.5 Any other project development outputs

and outcomes

4. Overall Rating

ADB = Asian Development Bank; ATCE = ATC Enviro Co., Ltd.; CDM = carbon development mechanism; EDL-Gen = Electricité du Laos Generation Plc.; ERP =

enterprise resource planning; ESMS = environment and social management system; GAEA = Global Action for Environmental Awareness Ltd ; Lao PDR = Lao

People’s Democratic Republic; m3 = cubic meter; MW = megawatt; PSD = private sector development; PPWSA = Phnom Penh Water Supply Authority Plc.; Song

Ong = Song Ong Power Joint Stock Company; Symbior = Symbior Elements Holdings Limited; Tam Long = Tam Long Power Joint Stock Company. Source: Asian Development Bank.

Appendix 3 15

DEVELOPMENT IMPACT

1. Mekong Brahmaputra Clean Development Fund L.P. has helped create additional jobs through its investees during the investment period, as follows:

Table A3.1: Additional Jobs Created during Investment Period

Project Additional

employment Beginning

year Ending

year Electricité du Laos Generation, Plc. (EDL-Gen) 293 2011 2019 Global Action for Environmental Awareness, Ltd. (GAEA) 82 2014 2019 Phnom Penh Water Supply Authority (PPWSA) 486 2012 2019 Song Ong Power Joint Stock Company … Symbior Elements Holdings Limited (Symbior) 28 2012 2015 Tam Long Power Joint Stock Company 20 2012 2017 Total 909

… = not available.

Note: The ending year for the active account (EDL-Gen) was based on the latest info provided.


2. The private and public funding obtained during the investment period is as follows:

Table A3.2: Additional Funding Obtained during Investment Period

Project Additional Debt

($ million)

Additional Paid-in Capital

($ million) Electricité du Laos Generation, Plc. (EDL-Gen)a 0 … Global Action for Environmental Awareness, Ltd. (GAEA) 0 0 Phnom Penh Water Supply Authority (PPWSA) 69.06 16.12 Song Ong Power Joint Stock Company 0 0 Symbior Elements Holdings Limited 35.09 0 Tam Long Power Joint Stock Company 19.58 3.10 Total 123.73a 19.22

… = not available. a The $1.428 billion additional debt obtained by EDL-Gen was excluded because the Asian Development Bank was not

supporting the project financed through the additional debt.

Note: The ending year for the active account (EDL-Gen) was based on the latest info provided as of December 2019.

Source: ADB and Dragon Capital Clean Development Investments Limited.

3. The Mekong Brahmaputra Clean Development Fund L.P. cited the following positive impacts of the investments at the proposal stage:

Table A3.3: Positive Impacts Estimated from the Investment Project Positive Impact Electricité du Laos Generation, Plc. (EDL-Gen) 2,006,120 tons of CO2 avoided (for 2019 only) Global Action for Environmental Awareness, Ltd. (GAEA)

375 tons/day municipal solid waste collected (as of February 2019)

Phnom Penh Water Supply Authority (PPWSA) Average monthly water consumption for 2019 of 16,964,111 m3.

Song Ong Power Joint Stock Company 29,500 tons CO2/year avoided (for 2017 only) Symbior Elements Holdings Limited 820 tons CO2/year avoided (as of 30 Jun 2017) Tam Long Power Joint Stock Company 41,590 tons CO2/year avoided (as of 30 June 2017)

CO2 = carbon dioxide, GWh = gigawatt-hour, m3.= cubic meter.


16 Appendix 3

4. Electricité du Laos Generation, Plc. Electricité du Laos Generation, Plc (EDL-Gen) is a Lao state-owned company that went public at the end of 2010. Mekong Brahmaputra Clean Development Fund L.P. invested at the initial public offering. EDL-Gen owns and operates several hydropower plants in the Lao People’s Democratic Republic (Lao PDR). At investment time, its capacity was 387 megawatts (MW). As of 30 September 2020, the company wholly owned 1,649 MW of power generating capacity from ten hydropower plants and joint venture in hydropower businesses of a total of 3,753 MW. The increased capacity fulfilled the increased demand for electricity from both domestic and neighboring countries. In addition, since 2015, EDL-Gen started investing in solar power, through a joint venture mechanism. EDL-Gen’s value at the initial investment was $468.04 million and as of 30 September 2020, the market value was $444.2 million. 5. Global Action for Environmental Awareness, Ltd. Global Action for Environmental Awareness, Ltd. (GAEA) is a solid waste management services company in Cambodia. It provides the collection, disposal, and cleaning services in four provinces: Banteay Meanchey, Kampong Thom, Kampot, and Siem Reap. It collected 375 tons per day waste (as compared to 55,000 tons per year in the beginning of investment) with 17,000 customers as of 2019. The co-investors were Monsoon Investments and Devenco. Mekong Brahmaputra Clean Development Fund L.P. had a board seat, together with Monsoon Investments and Devenco. During the investment period, the fund implemented an organizational restructuring in GAEA commencing in 2016 and supported GAEA to implement an early improvement plan, including an enterprise resource planning system installation, GPS tracking system, equipment upgrade, prohibition on waste burning, the relocation and construction of waste transfer and sorting center (inclusive of garage, administration building, employee facilities, wastewater treatment, and recycling). In addition, GAEA performed an environmental impact assessment with the goal of implementing a sanitary expansion landfill for Siem Reap City. GAEA was the first waste management company in Cambodia to prohibit the burning of landfill waste and the first practitioner of glass recycling. 6. Phnom Penh Water Supply Authority. Phnom Penh Water Supply Authority (PPWSA) is a state-owned potable water supply company in Cambodia. The fund invested at the initial public offering in 2012. PPWSA has maintained a good reputation for the efficiency of its operations and has practiced price-subsidization for small water users in its tariff structure. The capacity of the distribution network increased from 65,000 cubic meters (m3) per day in 1993 to 320,000 m3/day in 2012. PPWSA received the 2004 Asian Development Bank Water Prize for "dramatically overhauling Phnom Penh's water supply system and demonstrating leadership and innovation in project financing and governance." As of October 2020, PPWSA increased the capacity of the distribution network to 580,000 m3/day from four water treatment plants with over 3,000 kilometers of pipe in Phnom Penh. The majority co-investor was the Ministry of Industry and Handicrafts. 7. Song Ong Power Joint Stock Company. The Song Ong Power Joint Stock Company (Song Ong) hydropower plant was constructed in 2005 and if has officially operated since March 2009 with output capacity of 8.1 MW. After the fund’s investment, the company was considering a 3 MW extension which was later determined to be infeasible because of the impact of a proposed nearby agricultural irrigation reservoir project. Instead, the company expanded the pondage area that provided marginal gains for a very low investment cost. The fund had two board members presented in the company. 8. Symbior Elements Holdings Limited. The fund invested in Symbior Elements Holdings Limited (Symbior), which in turn owns 40% of Symbior Elements, Ltd. of Singapore, being the parent company of both PP Solar Nong-No and ATC Enviro Co., Ltd. (ATCE). PP Solar owns and

Appendix 3 17

operates a 1 MW photovoltaic solar plant while ATCE was developing several very small solar power plant projects aggregating to 29 MW at the time of the fund’s initial investment. The additional 29 MW worth of projects were partially financed by the additional equity raised, including from the fund. The fund had one member represented in the company. ATCE received certif icates of completion in 2014. 9. Tam Long Power Joint Stock Company (Hoa Phu hydropower project). At the time of the fund’s initial investment, Hoa Phu was a greenfield project. The Tam Long Power Joint Stock Company (Tam Long) project has 29 MW capacity and started its commercial operational date on 25 September 2018. The fund had two board members represented in the company. 10. The annual corporate tax paid by the investees is in Table A3.4.

Table A3.4: Annual Corporate Tax Paid by Investee

Project Corporate Tax Paid Annually

($) Reporting

Date Electricité du Laos Generation, Plc. (EDL-Gen) 11,909,961 31 Dec 2019 Global Action for Environmental Awareness, Ltd. (GAEA)

56,385 31 Dec 2019

Phnom Penh Water Supply Authority (PPWSA) 3,883,159 31 Dec 2019 Song Ong Power Joint Stock Company 493,992 31 Dec 2017 Symbior Elements Holdings Limited (Symbior) 0 30 Jun 2017 Tam Long Power Joint Stock Company 963,591 30 Jun 2017

Note: The ending year for the active account (EDL-Gen) was based on the latest info rmation provided. Source: Dragon Capital Clean Development Investments Limited .