Logo of Phnom Penh Post newspaper Phnom Penh Post - Saudi firm eyes investment in Cambodian energy sector

Saudi firm eyes investment in Cambodian energy sector

Saudi firm eyes investment in Cambodian energy sector

Saudi Arabia’s ACWA Power is eyeing to invest $10 billion in 10 countries this year, including Cambodia, its CEO said on Saturday.

ACWA Power – which is backed by Saudi Arabia’s sovereign investment fund – already holds substantial assets in 12 countries and has bid for renewable energy projects in Cambodia, among other countries, Paddy Padmanthan told Reuters at the sidelines of the World Future Energy Summit in Abu Dhabi this week.

“The company, which builds power and desalination water plants, has 50 per cent of its portfolio in Saudi Arabia, and plans to expand into new markets,” Padmanthan said.

The Ministry of Mines and Energy on Tuesday said the Kingdom welcomed all investors as the government aims to expand the power network to all villages across Cambodia.

“There is great potential here for investments in the energy sector,” ministry spokesman Victor Jona told The Post.

Due to the Kingdom’s rapid pace of development, Electricite du Cambodge announced that it will increase investments in solar energy by 12 per cent by the end of the year, boosting that commitment to over 20 per cent over the next three years.

Last month, Cambodia International Investment and Development Group Co Ltd and China Huadian Hong Kong Co Ltd announced a partnership to build two coal-fired power plants in Preah Sihanouk province.

With a capital investment of around $1 billion, the coal-fired facilities will produce some 700MW of electricity. The power plants are scheduled to be completed by the end of 2022 and will become operational by early 2023.

Cambodia generates most of its energy from hydropower dams and coal-fired plants, accounting for around 48 per cent and 47 per cent of power production, respectively.

The Kingdom’s energy demand is projected to increase to 2.3GW in 2020 from 1.5GW last year. The government forecasts demand to reach 2.8GW in 2021.

ACWA Power was recently granted three contracts worth a total of $800 million to develop power stations in Azerbaijan and Ethiopia, Padmanthan said.

The $300-million project in Azerbaijan will produce 200MW of power, while two power plants in Ethiopia – worth about $500 million combined – will produce 300MW of energy.

The firm has committed $500 million to develop several renewable energy projects in Indonesia. It is also eyeing to expand its portfolio to include the Moroccan, UAE, Jordanian and Saudi markets.

The sovereign Public Investment Fund of Saudi Arabia holds a 25 per cent stake in ACWA and has announced it will increase its holdings to 40 per cent.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro