Logo of Phnom Penh Post newspaper Phnom Penh Post - Gov’t approves over $830M worth of electricity projects

Gov’t approves over $830M worth of electricity projects

Content image - Phnom Penh Post
The Council of Ministers on Friday approved a 150MW hydropower dam in Koh Kong province and two 500kV transmission lines. COUNCIL OF MINISTERS

Gov’t approves over $830M worth of electricity projects

The government on Friday approved more than $830 million worth of electricity infrastructure projects – a 150MW hydropower dam, a 265MW coal-fired power station and three transmission lines.

The 150MW Stung Tatai Leu dam will be built on the upper reaches of the Tatai River in Koh Kong province’s northern Thma Bang district by the Chinese state-owned China National Heavy Machinery Corp (CHMC) at a cost of $389,414,004, according to the minutes of the Council of Ministers Plenary Session.

“The project will be conducted under a Build-Operation-Transfer [BOT] 39-year concession scheme, including four years for construction and 35 years for business operation,” the Council of Ministers said.

The council noted that the dam will generate an average of 527 million kilowatt hours (kWh) per year and that the electricity will be sold to state-run electricity supplier Electricite du Cambodge (EdC) at $0.0792 per kWh.

A 199.52km-long 500kV transmission line project connecting Phnom Penh to the Cambodia-Lao border will also be under a BOT 28-year concession scheme, including three years for construction and 25 years for business operation, and will be built at a cost of $330,466,584, the council added.

A 107km-long 500kV transmission line project linking Battambang province with the Cambodian-Thai border will be built by SchneiTec Co Ltd under the BOT model for a 39 year lease contract – four for construction and 35 for doing business – at a cost of $110,948,912.

Government spokesman Phay Siphan pointed out that the Battambang-Thai border transmission line project would yield $144,623,556 in tax revenue in its latter 35 years and $199,705,984 over the full 39-year concession period.

He said the figure includes revenue from income tax, withholding tax on interest expenses, withholding tax on the distribution of dividends and the receipt of value added tax (VAT), but noted that it does not include other sources of tax such as salary tax, withholding tax on leases or other indirect taxes.

“A plan has been put in place to trim electricity prices once a year since 2016, when the development of the national grid and large power sources steadily began to blossom.

“The price of electricity in Cambodia has seen a 40 per cent drop from pre-2015 levels,” Siphan said.

Also on Friday, the Council for the Development of Cambodia (CDC) issued a final registration certificate to Oddormeanchey Power Industrial Co Ltd (OPI) for its $294.3 million 265MW coal-fired power station in O’Svay commune’s Chheuteal Chrum village in Oddar Meanchey province’s Trapaing Prasat district.

The CDC also issued a certificate to ODM Power Line Co Ltd for its $61.4 million 230kV transmission line project linking OPI’s power plant to East Siem Reap Substation.

General Department of Energy director-general Victor Jona told The Post that the projects were part of a master plan to meet Cambodia’s electricity supply needs.

“We noted the eligibility of the investment projects, notwithstanding the environmental impact of hydropower development, but from an economic angle, they are large enough to contribute to building our economy, so we’ll do them,” he said.

MOST VIEWED

  • Phnom Penh curfew starts today

    A two-week curfew from 8pm to 5am starts today in Phnom Penh, a day after a sub-decree detailing administrative measures to contain Covid-19 was issued by Prime Minister Hun Sen. “Travelling in Phnom Penh is temporally banned between 8pm and 5am,” said Phnom Penh governor

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants

  • Time to Rise by rapper, chapei legend is viral hit with ancient-modern mix

    Kong Nay is known internationally as the master of the chapei dang veng, a traditional Cambodian instrument resembling a long-necked lute or guitar with two nylon strings that he was already playing professionally by the age of 15. Nay is sometimes referred to as the Cambodian