Building Chiller Replacement Program

The project seeks to remove barriers preventing the widespread replacement of low energy efficiency building chillers with highly energy efficient non-CFC chillers in Thailand. This will address two global problems at the same time: Global warming and stratospheric ozone layer depletion. In view of these dual benefits joint GEF - Multilateral Fund financing is proposed to address perceived risks associated with chiller replacements under tropical conditions, to cover increased initial transaction costs and to resolve access to credit problems. It is expected that a contingent, interest free GEF/MF loan of $5 million will remove these barriers and leverage about $85 million in World Bank and commercial co-financing to transform Thailand’s Chiller market from low efficiency CFC chillers to climate and ozone friendly models. Thus the project will enable the replacement of at least 440 chillers, abating about 1,400 kt in carbon emissions and phasing-out 220 tons of CFC.