Logo of Phnom Penh Post newspaper Phnom Penh Post - Pestech awarded $100M transmission line contract

Pestech awarded $100M transmission line contract

A view of the Stung Tatai hydropower dam after its inauguration in 2015.
A view of the Stung Tatai hydropower dam after its inauguration in 2015. Heng Chivoan

Pestech awarded $100M transmission line contract

Malaysian-owned power infrastructure provider Pestech (Cambodia) Ltd has been awarded a contract to build a 230-kilovolt transmission line valued at $100 million to connect Koh Kong province’s Stung Tatai hydropower dam to Phnom Penh, according to a filing on the Malaysian stock exchange.

The deal, which was originally awarded to Alex Corporation in February of this year, allows the company to eventually complete a 220-kilometre line that cuts through the largely untouched Southern Cardamom Mountains.

Victor Jona, director-general of the Ministry of Mines and Energy, said that the Pestech line will become the second dedicated line to transfer electricity from the Stung Tatai hydropower dam while also connecting additional power facilities in the area.

The Stung Tatai dam was constructed by the China National Heavy Machinery Corporation for $540 million and began producing electricity in late 2015.

“When we have an additional transmission line, distribution will be more reliable,” he said. “Once completed, there will not be as many power outages as before and it will provide a secure electricity source to fulfill the demand of the industrial sector.”

According to the filing on the Malaysian stock exchange, Pestech will undertake the design, engineering, manufacturing, installation, testing and commissioning of the line for Alex Corporation. The project will commence within three months with construction expected to last three years.

While Jona confirmed that the contract between Alex Corporation and the government is under a build, operate, transfer (BOT) agreement, he could not provide further details. However, according to documents released by the Council of Ministers in late February, the deal would be under a 25-year BOT agreement.

Mey Kalyan, senior adviser at Supreme National Economic Council, said that while an additional transmission line would improve reliability to end consumers, the government needs to do more to improve “quality electricity” to keep up with its lofty Industrial Development Plan that aims to boost industrial diversification.

“The creation of coal power plants and hydropower plants with more transmission lines adds something, but it is not enough to meet the needs of manufacturers,” he said. “We should also think about building power stations next to special economic zones to give investors more confidence and reliability.”

MOST VIEWED

  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Brawl marrs football final as Indonesian take gold in seven goal thriller

    The Indonesian men's U22 men national football team were crowned champions of the 32nd SEA Games in Cambodia, defeating Thailand 5-2 in extra time on May 16 at Olympic National Stadium in Phnom Penh. The match was marred by an ugly incident that occured in the 91

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Candlelight Party disqualified from July general election

    The National Election Committee (NEC) has disqualified the Candlelight Party (CP) from contesting the upcoming general election, citing a lack of valid documentation. NEC spokesman Khorn Keomono said the CP failed to fulfil one of the three main requirements: including original documentation proving their registration

  • Thong Khon calls for orderly SEA Games closing ceremony

    Thong Khon, Minister of Tourism and permanent vice-president of the Cambodia SEA Games Organising Committee (CAMSOC), calls on all people who have received tickets to the May 17 closing ceremony of the biennial multi-sports extravaganza at the Morodok Techo National Stadium to ensure that the event

  • 1.4 billion dollar Phnom Penh-Bavet expressway due in four years

    The Government, through the Ministry of Public Works and Transport, has officially signed a public-private partnership agreement with a private company for the construction of a Phnom Penh-Bavet Expressway project that will connect the capital to Svay Rieng province. The budget for the project is