Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - China IPO to benefit Kingdom

China IPO to benefit Kingdom

China IPO to benefit Kingdom

China's Sinohydro Group Ldt earned US$2.12 billion in an initial public offering on the Shanghai Stock Exchange, the company announced yesterday. The move came just two months before Sinohydro launches the Kamchay Hydroelectric Dam in Cambodia’s Kampot province.

The company expects the IPO to help fund future projects in the Kingdom, as well as several construction works in China and abroad, Sinohydro Cambodia representative Zhao Jinhui said yesterday. “We should be able to use money from this IPO to fund our projects here directly,” Zhao Jinhui said. “We won’t need to go to the bank for funding anymore.”

The company sold 3 billion shares at CNY4.50 (US$0.70) per share, 500 million shares less than announced last week in a Shanghai Stock Exchange prospectus.

The offering was among several in China that struggled this week with uncertainty in the global markets, Reuters reported.

Sinohydro is planning or currently building several other projects that will keep the company in Cambodia long after the December 7 launch of the $280 million dam. Work on a bridge, another dam and two large-scale irrigation systems are underway, with several other projects presently being discussed, Zhao Jinhui said. However, specific details on the four former projects were unavailable, and he declined to disclose the nature of those under discussion.

Sinohydro will operate the 194-megawatt Kamchay dam for 40 years before transferring management to Cambodia. Foreign management of dams in Cambodia is the only inroad for such large-scale projects at present, University of Cambodia business and economics lecturer Chheng Kimlong said yesterday.

“What ministry could manage this project right now?” he said. “It’s not cost effective for the government to run these things. That’s why they’ve opened up to the private sector.”

The greatest problem posed by foreign private companies operating in Cambodia is a lack of governmental control over environmental impact, Chheng Kimlong said.

While companies like Sinohydro offer the Kingdom a wealth of green technology, the government does not yet have the means to regulate them.

“This makes it harder for the government to make sure that the technologies these companies use don’t harm the environment,” he said.

Chinese companies, once scorned by activists for their disregard for the negative social and environmental impact of their projects in Cambodia, have made recent progress in this regard, Chheng Kimlong had said earlier, citing a moratorium on another Chinese dam project due to environmental concerns.


  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of

  • One Australian, one Cambodian killed in explosion at military base

    Updated: 5:20pm, Friday 16 March 2018 An Australian tourist and a Cambodian soldier were killed in an explosion on Thursday afternoon at an army base in Cambodia’s Kampong Speu province. The Australian, whom the government initially identified as a technical demining expert in his 40s, and

  • Peeling back layers of prehistory in Battambang

    When the man passed away, he had not yet reached 50. He belonged to a tribe that had settled near the Sangker River in Battambang province, likely cultivating the fields and raising animals. On the side, they hunted for boars, and even turtles, one of which