Logo of Phnom Penh Post newspaper Phnom Penh Post - CDC approves Royal Group’s 700MW coal-fired power plant

CDC approves Royal Group’s 700MW coal-fired power plant

Content image - Phnom Penh Post
Once online in 2023 or 2024, Botum Sakor Energy’s Koh Koh-based coal-fired power station will deliver 700MW of electricity. Hong Menea

CDC approves Royal Group’s 700MW coal-fired power plant

The Council for the Development of Cambodia (CDC) on December 8 approved Botum Sakor Energy Co Ltd’s (BSE’s) more-than-$1 billion 700MW coal-fired power station in Koh Kong province’s southwestern Botum Sakor district.

Based in Thma Sar commune’s Chamlang Ko village, the CDC noted that the facility will provide 360 jobs for locals.

BSE is a wholly-owned subsidiary of the Kingdom’s largest conglomerate, Royal Group of Companies Ltd.

“This project will help create jobs and enhance the livelihoods of Cambodians,” the company said, according to the minutes of a July 28 meeting between the Royal Group and 58 families affected by the development.

According to a sub-decree issued on August 6, the government granted 168ha in Botum Sakor National Park in Koh Kong to the Royal Group to build the power station.

The project will require $1.3442 billion in capital investment and will be online in 2023 or 2024. Of that, 30 per cent will come from direct capital and 70 per cent will be from bank loans, the sub-decree said. The project will be developed under a 35-year build, own, operate (BOO) model.

Deputy provincial governor Sok Sothy told The Post on December 9 that BSE has been clearing land in preparation for construction work, and that a social impact assessment was nearing completion.

Having been given the nod by the CDC, he said the company will begin construction soon.

He voiced his confidence that the plant would scale up energy efficiency and security in the coastal province, which he pointed out had untold tourism potential.

“Shoring up the electricity infrastructure will help entice investment to Cambodia and push the pedal to the metal and accelerate provincial development,” he said.

Last month, BSE struck an engineering, procurement and construction (EPC) contract with Shenzhen-listed Sinosteel Engineering & Technology for the plant, according to Shanghai-based financial news portal Yicai Global.

SET is a wholly-owned subsidiary of Beijing-based state-owned enterprise Sinosteel Corp.

As outlined in the EPC contract, Yicai Global said, once it secures payment, SET will present the design and will procure and supply the equipment and materials, as well as provide construction, installation and commissioning services.

Citing an SET statement, the news portal said the total contract value is to the tune of about $1.1 billion.

The contract covers the construction of two new 350MW engine units and ancillary generation and transmission facilities, as well as a dedicated coal terminal, it said.

Construction of the first unit is scheduled to be completed within 36 months of breaking ground, with the second unit slated to be finished 12 months later, it added.

Victor Jona, director-general of the Ministry of Mines and Energy’s General Department of Energy, told The Post in August that the government needs to diversify energy production to include other sources and ensure stable electricity supply in Cambodia.

He said that without exception, the government assumes the ultimate responsibility in reviewing the socio-environmental impact of every development project in the power sector.

“All in all, we need to expand our energy portfolio to include a plethora of sources, inter alia, hydropower, coal and solar to ensure the supply to consumers, be they citizens, industries, cottage industries or service providers,” Jona said.

On the Shenzhen Stock Exchange, SET’s share price fell 0.07 yuan (1.07 US cents) or 1.68 per cent to close at 4.10 yuan on December 9 for a market capitalisation of 5.15 billion yuan, with 5.60 million shares traded.

MOST VIEWED

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement

  • Walmart plans to diversify stock of Cambodia goods

    Walmart Inc, the world’s biggest retailer, on June 22 reiterated recent plans to scale up and greatly diversify its purchases of Cambodian products, according to the labour ministry. This came during a virtual working meeting between Minister of Labour and Vocational Training Ith Samheng and

  • Cambodia detects new Covid cases after 52 days: PM

    After 52 days of zero new Covid-19 cases, Cambodia has now detected new infections, according to Prime Minister Hun Sen. In his special audio address to the nation late on June 28, Hun Sen said the new cases were detected on people who had undergone PCR tests

  • Cotton club growing in Battambang

    The global market for “vegan leather” – materials that act as alternatives to traditional leather that can be synthesised from cork, apple peels, cactus, recycled plastic, grape pomace and pineapple leaves, among other things, and supposedly require no chemicals or water to produce – is expected to