Logo of Phnom Penh Post newspaper Phnom Penh Post - China offers loans for power grid

China offers loans for power grid

China offers loans for power grid

China has offered to loan Cambodia US$50 million per year to develop the Kingdom’s energy sector, as GE seeks to open a representative office in the country, officials said yesterday.

Minister of Industry, Mines and Energy Suy Sem told reporters of the loan requirements after a bipartisan meeting with Wu Yin, vice president of the Chinese energy administration.

In 2011 and 2012, Electricité du Cambodge (EDC) budgeted only $80 million to develop its infrastructure, while the loan from China would be used for development of rural electricity, he said.

“Wu Yin said our project is good. Our plan requires $50 million per year. If we receive it every year then all will be well,” Suy said, adding: “Our objective is to build power plants to meet our country’s energy demand.”

A number of Cambodian provinces have completed their power grids, connecting all of their districts, except some southeast provinces. “The plants will generate enough energy to send the supply from the provinces to Phnom Penh and others,” he said. “But rural areas are poor so we need substations to convert the energy from high tension lines to those used on a local level.

“At the moment we lack the budget to develop every district and commune as well as meet our own needs, so we require a loan from China,” Suy continued.  

Sat Samy, secretary of state for the Ministry of Industry, Mines and Energy, said at the Energy Business Forum during the ASEAN Energy Ministers Meeting this week that Cambodia’s power sector was severely damaged by years of war and neglect, and at present only 34 per cent of households have access to electricity distribution services.

Some isolated areas of Cambodia use diesel generators and medium and low voltage distribution systems.

“As a result, the electricity price is very high, the highest in the region,” he said.

Kenji Uenishi, president of the Asia Pacific region for GE Energy, said the company has decided to open a representative office in Cambodia because of the opportunities in the energy sector of this country.

“I feel the strong potential in Cambodia’s energy sector. There are oil and gas opportunities.”

To contact the reporter on this story: Rann Reuy at [email protected]

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty