DBS Bank has provided a $40 million loan facility to Sembcorp Industries to build the 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir in Tuas.

See: Sembcorp and PUB begin construction of floating solar farm on Tengeh Reservoir

The bank is the sole financier for the project.

Awarded by PUB in February, the project will be Singapore’s first single large-scale floating solar photovoltaic (PV) system and one of the world’s largest inland floating solar PV systems.

The project, which will cover an area of some 45 football fields, is slated to be completed by 2021.

It will generate enough energy to power about 16,000 four-room HDB flats for a year, offsetting about 32 kilotonnes of carbon emissions annually, which is equivalent to removing some 7,000 cars off the roads.

With this project, Sembcorp will be one of the largest renewable energy players in Singapore with approximately 240MWp of solar capacity in the country.

“This floating solar PV system for PUB is a landmark project that demonstrates Sembcorp’s commitment and expertise in developing large-scale renewable energy projects to contribute to Singapore’s transition to a low-carbon economy,” says Koh Chiap Khiong, head of Singapore, Southeast Asia, and China (energy) at Sembcorp Industries.

“We are pleased to have DBS Bank as the sole financing partner for this project as we build an advanced and sustainable platform to deliver long-term value for PUB and Singapore,” Koh adds.

Lim Wee Seng, head of energy, chemicals, and infrastructure at DBS Bank says, “Enabling renewable energy financing is at the core of DBS’ agenda and is one of the key tenets of our sustainability strategy.”

“We are heartened to support Sembcorp Industries in this landmark transaction which demonstrates Singapore’s transition towards a low-carbon economy. It builds on our recent financial advisory roles in Taiwan’s largest floating solar project and also Taiwan’s largest ground-mounted solar project – and that’s where DBS seeks to differentiate itself in renewables financing – capturing financial advisory opportunities so we shape and influence early,” Lim adds.

Shares in Sembcorp Industries and DBS Bank closed flat at $1.85 and $20.88 respectively on August 19.