The locally owned Cambodia International Investment and Development Group (CIIDG) and China Huadian Hong Kong Co Ltd (CHDHK) are partnering to build two coal-fired power plants in Preah Sihanouk province.
With capital investment of around $1 billion, the facilities will be able to produce some 700MW of electricity.
Electricite du Cambodge (EdC) director-general Keo Rattanak said at the signing and groundbreaking ceremony last week that construction will be completed by the end of 2022, with the plants generating power in early 2023. Each facility will be able to produce 350MW.
“The plants will be able to produce power in dry season and will help lower the price of electricity. The joint venture between the two companies shows the strong ties between China and Cambodia,” Rattanak said.
Preah Sihanouk governor Kuoch Chamroeun, who presided over the ceremony, said the companies had complied with the law and conducted environmental impact studies.
“Cambodia has faced power shortages, while the price of electricity is high. This investment in the power sector will go a long way towards meeting the demands of the people and investors,” Chamroeun said.
CHDHK is a subsidiary of China Huadian Group, which invested in the Russey Chrum hydro-electric dam in Koh Kong province in 2009
CHDHK director Fang Zheng said the company had worked in the Russian and Indonesian power sectors. The investment in Preah Sihanouk province would strengthen Cambodia’s energy industry, he added.
“Our company is investing in the power sectors of other countries, and will be able to produce 2,400MW of electricity. The coal-fired power plants in Preah Sihanouk province will be a contribution from our company to addressing the power shortages Cambodia faces in dry season. Furthermore, the investment will attract other foreign investors to invest in the province,” Fang said.
Cambodia plans to spend more than $100 million on subsidies by 2021 to reduce electricity tariffs in a move to spur economic growth and relieve the financial burden on businesses and households.
The Kingdom consumed a total of 2,650MW of electricity last year, an increase of around 15 per cent compared to 2017, according to official figures from the Ministry of Mines and Energy.