By Sok Serey
Radio Free Asia
Translated from Khmer by KI-Media
On Wednesday 26 July, the Cambodian parliament voted to approve a much contested law making way for the government to guarantee the Chinese Sino Hydro Corporation Limited to invest more than US$ 280 million for the construction of a hydro-electric power plant in Mount Kamchay, Kampot province, for business for a period of 44 years.
The approval vote obtained 69 supporting votes out of a total of 86 MPs present. The opposition MPs had protested this draft law which it accuses of lack of transparency and the price of the electricity will be higher than in neighboring countries, such as Laos and Vietnam.
According to the report by the National Assembly Committee in charge of public works, telecommunication, industry, mining and energy, the agreement between the Royal Government of Cambodia and the Chinese company was signed on 23 February 2006. The hydro-electric power plant will have a capacity of 489 MWH per year, and the electricity produced will cost US$0.08008 per KWH.
The government promised to buy the entire hydro-electric plant if the plant can not function due to political insurrection in the country, and the government agree to buy the energy from the plant so that it will never incur any loss.
The approval vote is the second guarantee [provided by the government] after Cambodia accepted the initial hydro-electric plant investment by the Chinese company Cetic which was built in Kirirum at a cost of US$ 20 million, in 2001. The capacity of that plant if 12 MW.
Yim Sovann, opposition MP, protested and demanded that the approval vote be delayed: “If we allow 40 years of concession to the Chinese company Sino Hydro, on the 40th year, Sino Hydro will make a net profit of US$ 1.14 billion.”
Kong Vibol, the first secretary of state for the ministry of economy and finance, who participated in the discussions to provide this investment, defended this investment as it will benefit Cambodia and it will also entice regular price bidding: “This investment is not a loss, it is a profit for our entire nation.”
Keo Remy, opposition MP, said that the electricity price of US$ 0.08008 is higher than in Vietnam and Laos where the price is only US$ 0.07. The reason for this higher price is due to the fact that the government is taxing 3 times, that is why the cost is highest (in Cambodia).
Kong Vibol explained that during the initial negotiation with the company, it demanded US$ 0.09, however, after negotiation, the price was fixed at about US$ 0.08. Kong Vibol said that he cannot lower tax fees without authorization.
Following the approval vote by the parliament, the Sino Hydro cannot be contacted regarding the plan to build the hydro-electric power plant.
Ek Sam Ol, CPP MP, said that the planning to build the power plant in Mount Kamchay existed since the 60s, however, the planning was cancelled because of war.
According to research documents, Cambodia will need 13% of energy from electricity between 2003 and 2008, therefore, Cambodia will need a major source providing the energy.
The source also claimed that the price of electricity in Cambodia is more than double that of Laos, Vietnam, and a number of other neighboring countries.
The approval vote obtained 69 supporting votes out of a total of 86 MPs present. The opposition MPs had protested this draft law which it accuses of lack of transparency and the price of the electricity will be higher than in neighboring countries, such as Laos and Vietnam.
According to the report by the National Assembly Committee in charge of public works, telecommunication, industry, mining and energy, the agreement between the Royal Government of Cambodia and the Chinese company was signed on 23 February 2006. The hydro-electric power plant will have a capacity of 489 MWH per year, and the electricity produced will cost US$0.08008 per KWH.
The government promised to buy the entire hydro-electric plant if the plant can not function due to political insurrection in the country, and the government agree to buy the energy from the plant so that it will never incur any loss.
The approval vote is the second guarantee [provided by the government] after Cambodia accepted the initial hydro-electric plant investment by the Chinese company Cetic which was built in Kirirum at a cost of US$ 20 million, in 2001. The capacity of that plant if 12 MW.
Yim Sovann, opposition MP, protested and demanded that the approval vote be delayed: “If we allow 40 years of concession to the Chinese company Sino Hydro, on the 40th year, Sino Hydro will make a net profit of US$ 1.14 billion.”
Kong Vibol, the first secretary of state for the ministry of economy and finance, who participated in the discussions to provide this investment, defended this investment as it will benefit Cambodia and it will also entice regular price bidding: “This investment is not a loss, it is a profit for our entire nation.”
Keo Remy, opposition MP, said that the electricity price of US$ 0.08008 is higher than in Vietnam and Laos where the price is only US$ 0.07. The reason for this higher price is due to the fact that the government is taxing 3 times, that is why the cost is highest (in Cambodia).
Kong Vibol explained that during the initial negotiation with the company, it demanded US$ 0.09, however, after negotiation, the price was fixed at about US$ 0.08. Kong Vibol said that he cannot lower tax fees without authorization.
Following the approval vote by the parliament, the Sino Hydro cannot be contacted regarding the plan to build the hydro-electric power plant.
Ek Sam Ol, CPP MP, said that the planning to build the power plant in Mount Kamchay existed since the 60s, however, the planning was cancelled because of war.
According to research documents, Cambodia will need 13% of energy from electricity between 2003 and 2008, therefore, Cambodia will need a major source providing the energy.
The source also claimed that the price of electricity in Cambodia is more than double that of Laos, Vietnam, and a number of other neighboring countries.
1 comment:
When talking about electric power and Cambodia must have independent electrical power system from all other country! I like to see many more plans to build hydro-electric power plant in Cambodia.
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