Energy Service Companies (ESCOs) and Technology Providers/Distributors to Participate in CAPRED's ESCO Pilot Demonstration Program

CFA Number: CFA26-067

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

Domain Name: Infrastructure

Application Closing Date: 31 December 2026

Program Duration: August 2026– August 2027

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 until 2027, with a possible three-year extension. Funded by the Department of Foreign Affairs and Trade (DFAT) and implemented by Cowater International, CAPRED 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; Investment and Enterprise Development and Infrastructure Development; and three  Cross-Cutting components:   Gender Equality, Disability and Social Inclusion (GEDSI), Climate Resilience initiatives, and Policy Support.

1.2. About the ESCO Pilot Demonstration Program 

Cambodia's National Energy Efficiency Policy (NEEP) identifies the development of an Energy Service Company (ESCO) market as a key strategy to accelerate energy efficiency investment across energy industrial and commercial sectors. ESCOs provide a proven business model that enables businesses to implement energy efficiency improvements through performance-based contracts, where investment risks and returns are linked to verified energy savings.

To support the development of Cambodia's ESCO market, CAPRED is implementing the ESCO Pilot Demonstration Program to demonstrate the technical, financial, and commercial viability of ESCO business models across selected energy-intensive sectors. The program was initially launched in the agro-processing, animal farming, and rice milling sectors and has since expanded to include the hospitality and ice-making sectors.

The Program is designed to:

1. Demonstrate the technical, financial, and commercial viability of the ESCO business model across selected energy-intensive sectors, with the potential for replication and expansion to other sectors.

2. Generate evidence and lessons learned to inform policy development and strengthen the regulatory and enabling framework for ESCO market development in Cambodia.

Since the launch of the program, CAPRED has developed the enabling tools and commercial frameworks required to support Cambodia's emerging ESCO market, established a pipeline of bankable energy efficiency projects through Level 2 Energy Audits and Investment Grade Audits (IGAs), strengthened the capacity of participating ESCOs, and commenced the implementation of demonstration projects. Building on this progress, CAPRED is now inviting additional qualified local and international ESCOs and technology providers/distributors to participate in the next phase of the program.

2. Purpose and Scope of the Program

CAPRED is seeking applications from qualified Cambodian and international Energy Service Companies (ESCOs) and technology distributors to participate in the ESCO Pilot Demonstration Program. The implementation process involves the following key stages:

• Selecting project owners: CAPRED identifies and selects eligible businesses operating in target sectors through a separate Call for Applications. Selected facilities demonstrate strong potential for implementing energy efficiency measures and a commitment to investing under the ESCO business model. 
• Selecting and matching ESCOs: Through this Call for Applications, CAPRED will establish a pool of qualified ESCOs and match them with participating facilities based on technical expertise, sector experience, geographic coverage, and project requirements.
• Conducting Level 2 Energy Audits: The matched ESCO will conduct the Level 2 Energy Audit to identify and evaluate technically and financially viable Energy Efficiency Measures (EEMs). Where required, the ESCO may undertake the audit independently or with technical support from an independent energy auditor, engaged by CAPRED.
• Consultation with project owners: The ESCO, participating facility, and CAPRED will review the audit findings, agree on priority Energy Efficiency Measures, and confirm the facility's interest in progressing to the next stage of project development under the ESCO business model. 
• Conducting Investment Grade Audits (IGA): Conducting Investment Grade Audits (IGA): The matched ESCO will conduct the Investment Grade Audit (IGA) to validate the technical and financial feasibility of selected EEMs and prepare investment-ready technical and financial proposals. The audit may be undertaken independently by the ESCO or with technical support from an independent energy auditor, engaged by CAPRED.
• Contract negotiation and execution: Selected ESCOs and participating facilities will negotiate and enter into Energy Savings Performance Contracts (ESPC). CAPRED has developed a standard ESPC template and may provide technical and legal advisory support during contract negotiations.
• Project implementation: Selected ESCOs will implement agreed EEMs, including the supply, installation, commissioning, and optimisation of equipment and systems, in accordance with the agreed ESPC.
• Measurement and Verification (M&V): Following project implementation, selected ESCOs will undertake Measurement and Verification (M&V) of energy savings in accordance with recognised international standards, such as the International Performance Measurement and Verification Protocol (IPMVP).

3. CAPRED Support Package 

Selected ESCOs may receive the following support from CAPRED, subject to programme requirements and the availability of funding.

a. Technical Support: 

• Match selected ESCOs with participating facilities based on technical expertise, sector experience, and project requirements.
• Provide technical guidance throughout project development and implementation.
• Facilitate technical support from independent energy auditors during the Level 2 Energy Audit and/or Investment Grade Audit (IGA), where appropriate.
• Provide standardised Energy Savings Performance Contract (ESPC) templates and technical and legal advisory support during contract negotiation.
• Deliver training, coaching, and knowledge-sharing activities on energy auditing, financial modelling, Measurement and Verification (M&V), ESPC, project financing, and other relevant topics.

b. Financial Incentives:

To stimulate investment in energy efficiency projects under the ESCO business model in Cambodia, CAPRED has designed a financial incentive package to de-risk first-mover investments. Financial incentives will be provided on an output-based basis and are subject to programme requirements, funding availability, and CAPRED approval.

Shared Savings Model (the ESCO finances the project and recovers its investment through an agreed share of the verified energy cost savings)

• The minimum project investment size is USD 75,000.
• CAPRED may provide a grant to the ESCO to improve the financial viability of the project by reducing the investment payback period to four years.
• The maximum grant amount per project is USD 50,000.
• Financial support will be provided through an output-based grant agreement between CAPRED and the ESCO.

Guaranteed Savings Model (the project owner finances the project, while the ESCO guarantees a specified level of energy savings)

• The minimum project investment size is USD 75,000.
• Where the ESCO's guaranteed energy savings are not achieved, CAPRED may co-share 50% of the compensation payable to the facility owner, in accordance with the grant agreement.
• The maximum financial support per project is USD 50,000.
• Financial support will be provided through an output-based grant agreement between CAPRED and the facility owner.

4. Eligibility Criteria

Applicants must meet the following minimum eligibility requirements:

Corporate Eligibility:

• Be a legally registered company or business entity in Cambodia or another country.
• Have the legal authority to enter into contracts and undertake commercial activities.
• Demonstrate sound financial and operational capacity to implement energy efficiency projects under the ESCO business model.
• International applicants are encouraged to partner with or establish a local presence in Cambodia for project implementation.

Technical Experience:

• Demonstrate experience in developing and implementing energy efficiency projects in commercial, industrial, or other energy-intensive sectors.
• Demonstrate experience in the design, supply, installation, commissioning, and optimisation of energy-efficient technologies and systems.
• Demonstrate experience in conducting energy audits, identifying EEMs, and preparing technical and financial proposals.
• Experience with Energy Savings Performance Contracts (ESPC) and/or Measurement and Verification (M&V) will be considered an advantage.

Personnel and Technical Capacity:

• Have suitably qualified technical personnel with relevant expertise in energy efficiency, engineering, project implementation, and Measurement and Verification (M&V).
• Demonstrate the capacity to undertake Level 2 Energy Audits, Investment Grade Audits (IGA), and project implementation, either independently or in collaboration with qualified partners.

Compliance and Safeguarding:

• Demonstrating integrity and high ethical standards.
• Displaying sensitivity and adaptability to cultural, gender, religious, racial, national, and age differences.
• Fulfilling obligations to GEDSI sensitivity and maintaining a zero-tolerance policy for sexual harassment.
• Strictly comply with the DFAT Child Protection Code of Conduct and Policy.  (https://www.dfat.gov.au/sites/default/files/child-protection-policy.pdf )
• Teams with an appropriate gender balance are strongly encouraged to apply.

5. How to Apply

Interested ESCOs are invited to complete and submit the application form no later than 5 pm (Phnom Penh time), 31 December 2026 by e-mail to procurement@capred.org, cc: vergenylundy.song@capred.org; Mola.tin@capred.org. Any applications submitted after this time and date will not be considered. CAPRED will review the applications submitted on a rolling basis, starting one to two weeks after this call is posted.

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

Attachment: 

• Application form

Cowater International is an equal opportunity employer, basing employment on merit and qualifications as they relate to the professional experience and position expectations. Cowater does not discriminate against any employee or applicants 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.