Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom okays 2,400MW power purchase from Laos

Kingdom okays 2,400MW power purchase from Laos

Content image - Phnom Penh Post
Cambodia currently imports 442.5MW of energy from its neighbouring countries – 277MW from Vietnam, 135.5MW from Thailand and 30MW from Laos. Hong Menea

Kingdom okays 2,400MW power purchase from Laos

A cabinet meeting on Wednesday decided that the government will purchase 2,400MW of electricity from Laos.

A briefing document uploaded by government spokesman Phay Siphan to his Facebook page confirmed this.

It said Cambodia will buy exclusive power from two coal-fired power plants in Laos – TSBP Sekong Power and Mineral Company Limited, which is set to produce 600MW of electricity and Xekong Thermal Power Plant Company Limited, which will produce 1,800MW.

Both companies have received concessions from the Lao government to develop coal mines and power plants to supply electricity to Cambodia.

The document said investment in the two projects were worth $4.970 billion – including coal mine infrastructure, power plants, sub-stations and transmission lines to the Cambodian-Lao border.

“We are orienting our priority towards Laos because . . . [it] is one of the most favourable sources of electricity in terms of price, volume and the terms of purchase, as well as long-term safety,” Siphan wrote on his Facebook page.

Ministry of Mines and Energy spokesman Victor Jona told The Post on Wednesday that the project will be signed on Thursday during Lao Prime Minister Thongloun Sisoulith’s visit to Cambodia.

“After we sign an agreement to buy/sell power between Cambodia and the companies, the firms will mobilise funds for the construction so that power can be supplied to Cambodia starting in 2024,” he said.

The agreement will be made between state-run electricity supplier Electricite du Cambodge (EdC) and the companies at a fixed price of $0.077 per kilowatt-hour for 30 years under the guarantees of both governments.

Cambodia imports 442.5MW of energy from its neighbouring countries – 277MW from Vietnam, 135.5MW from Thailand and 30MW from Laos.

The Garment Manufacturers Association in Cambodia (GMAC), an association representing 580 garment and footwear factories in Cambodia, expects that the agreement will help meet the growing demand for electricity in the industry.

GMAC deputy secretary-general Kaing Monika told The Post on Wednesday that the energy sector has contributed significantly to national economic growth and the Kingdom’s garment sector.

“I think further approval of power projects from Laos will help ensure a sufficient and stable supply of electricity, unlike last year when we suffered from water shortages, causing our hydropower to not work,” he said.

The plan calls for the two coal-fired power plants to be divided into four phases. The first is set to go online by the end of 2024 and generate 300MW, and the second phase will go into operation by 2025, generating an additional 600MW.

The third phase is set to launch in 2026 with the capacity to produce 600MW more and the fourth phase will be in operation by 2027 and produce an additional 900MW for a total of 2,400MW.

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration