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

  • Investors’ $14.4M projects approved

    New investments from local and foreign sources continue to pour into Cambodia despite the Covid-19 pandemic remaining a lingering threat to regional and global economies. This comes as the Kingdom’s gross domestic product (GDP) is expected to contract between one and 2.9 per cent this

  • NagaWorld casinos set to reopen, schools to follow

    NAGACORP Ltd has requested that it be allowed to reopen its NagaWorld integrated resorts in Phnom Penh after the government recently approved casinos to operate again, provided they follow Covid-19 prevention measures set by the Ministry of Health. Mey Vann, the director-general of the Ministry

  • Rubber exports stretch 17%

    Cambodia exported 97,175 tonnes of natural rubber in the first five months of this year, surging 17 per cent compared to the same period last year as the Covid-19 pandemic stretches on, Ministry of Agriculture, Forestry and Fisheries official Khuong Phalla told The Post on Thursday. Phalla,

  • ASEM supports Kingdom’s proposal to postpone meeting amid Covid

    The 13th Asia-Europe Meeting (ASEM13) scheduled to be held in Cambodia in November has been postponed until mid-2021 due to the Covid-19 pandemic, a Ministry of Foreign Affairs and International Cooperation press statement released on Saturday said. The decision was made during a two-day meeting

  • Coffee maker roasted for producing fake product

    The Ministry of Interior’s Counter Counterfeit Committee will send a suspect to court on Monday after she allegedly roasted coffee mixed with soybeans and other ingredients, creating a product which could pose a high risk to consumers’ health. On the afternoon of July 2, the

  • Cash handout programme 80% complete

    Minister of Social Affairs, Veterans and Youth Rehabilitation Vong Soth confirmed on Thursday that the implementation of the Cash Transfer Programme For Poor and Vulnerable Households During Covid-19 had been implemented for more than 80% of the over 560,000 families. The programme was introduced one week ago.

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Where is Cambodia’s exit strategy that can save the economy?

    With the prospect of being slammed by a double whammy, the government is working on an economic recovery plan to deliver it from Covid-19 and the EU’s partial withdrawal of the Everything But Arms scheme in the next two to three years Cambodia is

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Kingdom, UN discuss rights

    A year after Cambodia received 198 recommendations from UN member countries, the UN Office of the High Commissioner for Human Rights (OHCHR-Cambodia) met with the Cambodia Human Rights Committee (CHRC) to discuss following-up on the Kingdom’s third cycle of the Universal Periodic Review (UPR) and