Announcement Description

1. Background

1.1. About CAPRED

The CAPRED Facility is Australia's flagship bilateral economic development program in Cambodia, focusing on economic recovery and resilience over the next five years, with a possible three-year extension. The Facility supports Cambodia in implementing a range of important economic reforms to support the country's economic transition. These interventions and reforms aim to encourage more productive and inclusive public and private investment, promoting a resilient, inclusive, and sustainable economy (RISE).

CAPRED interventions fall under three technical components including Agriculture and Agro-processing; Trade, Investment and Enterprise Development and Infrastructure Development; and three Cross-Cutting components: Gender Equality, Disability and Social Inclusion (GEDSI); Climate Resilient initiatives, and policy support.

1.2. About the ESCO Pilot Demonstration

The Cambodian government released the National Energy Efficiency Policy (NEEP) in 2023. One key strategy within NEEP is fostering the development of the Energy Service Company (ESCO) market in Cambodia.

ESCOS offer a proven business model, providing needed investment and guaranteeing energy savings over a contracted period. While globally recognized, Cambodia's ESCO market is still nascent. To leverage ESCOs' potential to drive energy efficiency, CAPRED aims to pilot investment with ESCO models between ESCOs and businesses in rice milling, food processing, ice-making, hotel and animal farming sectors.

CAPRED currently is also exploring potentials to expand piloting ESCO business model in other high energy consuming industries.

The objectives of this program are as follows:

• Testing the viability: assess the technical, financial, and economic feasibility of the ESCO model starting with the above sectors and potentially expanding to other major energy-consuming sectors.
• Informing policy: generate insights to inform policy development and regulatory frameworks for ESCO market development in Cambodia.

Bid Components

Call For Application: Energy Service Companies (ESCO) to Participate in the CAPRED's ESCO Pilot Demonstration Program

CAREER CATEGORY: Call for Proposals

LOCATION: Phnom Penh

CFA Number: CFA25-044

Project Name: Pilot Demonstration of the Energy Service Company (ESCO) Model for Energy Efficiency Services in Cambodia

Domain Name: Infrastructure

2. Purpose and Scope of the Program

CAPRED is seeking applications from ESCOs to participate in the Pilot Demonstration of the Energy Service Company (ESCO) Model

for Energy Efficiency Services in Cambodia. The implementation process involves the following key stages:

• Selecting project owners
• Conducting energy audit (level 2)
• Consultation with project owners
• Selecting potential ESCOs:
• Conducting Investment Grade Energy Audit (IGAs)
• Contractual arrangement and negotiation
• Investment in energy efficiency under the ESCO business model

3. CAPRED's potential support package

1. 1. Project pipeline development
   2. Technical assistance
   3. Financial incentive: To stimulate investment with the ESCO business model in Cambodia, CAPRED has designed a financial incentive package to de-risk first movers' investments. Below is the incentive package for different ESCO business models per project:

• Shared Saving Model:
  • The minimum size of investment per project is at least USD 75,000.
  • CAPRED will provide a grant to ESCO to bring the payback period of the investment to 4 years.
  • The maximum grant per project will be capped at USD 50,000.
  • The grant agreement between ESCO and CAPRED will be output-based.
• Guaranteed Saving Model:
  • The minimum size of investment per project is at least USD 75,000.
  • When ESCO's guaranteed saving to the project owner is not met, CAPRED will co-share 50% of the amount to be compensated to the project owners.
• The maximum grant per project will be capped at USD 50,000.
• The grant agreement between ESCO and CAPRED will be output-based.

Please click attachment bellow for more information.

Submission Requirements

4. How to Apply

Interested ESCOs are invited to complete and submit the application form no later than 5 pm (Phnom Penh time), 31 December 2025 by e-mail. Any applications submitted after this time and date will not be considered. CAPRED will review the submitted applications on a rolling basis, starting one to two weeks after this call is posted.

The program will host a Q&A session on 4 and 18 April 2025. Interested applicants can register to join the briefing via email by 3 and 17 April 2025.

CAPRED is available to answer questions or provide more detail on this call for application. Please email to email

Attachment:

• Application from

Cowater International is an equal opportunity employer, basing employment on merit and qualifications as they relate to professional experience and position expectations. Cowater does not discriminate against any employee or applicant on the basis of race, religion, sex, gender identity, disability, age, or any other basis protected by law. CAPRED aims to have a diverse workforce and a workplace that is supportive of gender equality, disability, and social inclusion. Women, people with disabilities, and other minorities are highly encouraged to apply.