Logo of Phnom Penh Post newspaper Phnom Penh Post - Electricity investment exceeds $6B

Electricity investment exceeds $6B

Content image - Phnom Penh Post
Ministry of Mines and Energy secretary of state Ty Norin said investment in the Kingdom’s electricity sector was worth $6.1 billion as of the end of last year. Hong Menea

Electricity investment exceeds $6B

The government attracted more than $6 billion in electricity investment between 2006 and the end of last year.

This is in response to rising electricity demands and is in line with government goals to reduce its cost for both commercial and residential users.

Speaking at the annual meeting of the Ministry of Mines and Energy on Tuesday, secretary of state Ty Norin said the private sector has made significant contributions to the electricity sector, which is key in accelerating the government’s development goals.

As of the end of last year, he said, investment in the Kingdom’s electricity sector was worth $6.1 billion.

This figure can be broken down into $3.3 billion in 2,756MW of electricity-generating capacity; $1.1 billion in 36 sub-stations, and $1.7 billion in a 34,056km medium-voltage electricity distribution network with 18,462 transformers and a 36,853km low-voltage network comprising more than 2.8 million capacitor bank connections.

Foreign direct investment and local investment combined accounted for $4.6 billion, he said, while state investment through credit assistance and its direct budget accounted for $1.5 billion.

“Without private sector investment, the state would have needed to invest until 2056 to achieve the amount amassed since 2006.

“Private sector investment has greatly accelerated electricity sector development,” said Norin.

He said proper project monitoring, adherence to the terms of contracts, favourable conditions for investment capital and prompt repayment from state-owned Electricite du Cambodge to privately-owned suppliers are key contributors to attracting investment into the Kingdom’s power sector.

“The government is open to private investment from both domestic and foreign entities in all electricity sub-sectors,” he said.

Speaking at the meeting, Minister Suy Sem said the ministry’s number one priority is the development of electricity sources to improve production capacity, transmission, distribution and connection.

He said it has been working to ensure that the Kingdom’s electricity supply remains stable and meets the growing demand. “Improving electricity services and reducing electricity prices have benefitted people across the country,” he said.

Cambodia produced a total of 11,261GWh of power last year, up 21 per cent from 2018’s 9,427GWh, a ministry report said. The Kingdom sold about 10,885GWh of electricity to more than 1.1 million consumers last year.

The Council of Ministers has approved two coal-fired power plant projects and a transmission line worth nearly $1.7 billion, a plenary meeting of the Council of Ministers heard on Friday.

Han Seng Coal Mine Co Ltd (HSCMC) will invest in a 265MW coal power plant located in Oddar Meanchey province’s Trapaing Prasat district using coal from the area, the council said.

Royal Group will develop the second plant, which will generate 700MW of electricity. It will use imported coal and be located in Koh Kong province’s Botum Sakor district.

HSCMC also received government approval for the construction of a 230kW power transmission line connecting Trapaing Prasat to the Siem Reap East substation.

The three investment projects are necessary to adequately ensure the safety and security of electricity supply in Cambodia between next year and 2024, especially in the dry season, when hydropower generation is at its lowest, the council said.

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Schools drawn into Manet degree row

    Prime Minister Hun Sen stepped into the Hun Manet-Sam Rainsy war of words over the validity of Manet’s degree from the US Military Academy at West Point, set off by Rainsy’s claims that Manet had received a “second-class degree” or “honorary degree”. Hun

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • NagaWorld protest part of ‘conspiracy’

    The Phnom Penh Municipal Court and police held a joint-press conference on January 4 to clarify details concerning the arrest of nine former employees of the integrated resort NagaWorld and the charges brought against them, saying that the authorities had clear grounds for taking legal action.