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]


  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Bosba: The first Khmer woman composer from UK’s Cambridge

    Bosba Panh is just 25 years old, but she’s already accomplished some impressive milestones for herself and the Kingdom. On July 24, she graduated with a Master’s degree from the University of Cambridge as the first Khmer woman composer and Khmer music graduate ever at

  • ‘Golden’ Angkor Wat likely due to natural phenomenon: ANA

    Pictures and video clips of the Angkor Wat temple, its spires seemingly coated in gold, have been shared tens of thousands of times on social media, prompting a sense of wonder among those who have seen them. Hong Sam Ath, who took the pictures and

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway