Original report from Phnom Penh
08 May 2008
The National Assembly on Thursday approved a measure to guarantee compensation to Power Synergy Corporation for the operation of a power plant.
Power Synergy, a joint Cambodia-Malaysia venture, plans to invest $400 million to establish a coal plant in Sihanoukville, which some officials say will help power Cambodia and reduce electricity costs.
The new measure protects compensation for the plant in the event of political upheaval.
Cambodian People’s Party lawmaker Chiem Yeap said the plant will produce electricity for Cambodians and tax revenue for the government.
But opposition Sam Rainsy Party lawmaker Yim Sovan said the agreement was unlikely to reduce the present price of electricity.
Kong Vibol, secretary of state for the Ministry of Economy and Finance, told the National Assembly the agreement met international standards.
Power Synergy, a joint Cambodia-Malaysia venture, plans to invest $400 million to establish a coal plant in Sihanoukville, which some officials say will help power Cambodia and reduce electricity costs.
The new measure protects compensation for the plant in the event of political upheaval.
Cambodian People’s Party lawmaker Chiem Yeap said the plant will produce electricity for Cambodians and tax revenue for the government.
But opposition Sam Rainsy Party lawmaker Yim Sovan said the agreement was unlikely to reduce the present price of electricity.
Kong Vibol, secretary of state for the Ministry of Economy and Finance, told the National Assembly the agreement met international standards.
2 comments:
Yim Sovan said the agreement was unlikely to reduce the present price of electricity.
The price of electricty will fluctuate at all time due to the fact that price of coal is also fluctuated every second during any trading hour, however, the government shall be able to set a price bench mark where is applicable to do so.
For esxample, China is eyeing for the power grid of New South Wales - state in Austria; at a price tagged of 15 billions Australian dollar. This is a well established grid and of course will sure render profit, however, the state government is keen to privatise the grid but also will keep a lose eye on the practize should China bid is sucessful.
approved a measure to guarantee compensation to Power Synergy Corporation for the operation of a power plant.
Surely in the feasibility/investment book, the firm would put everything in details from developemtn stage to operating stage where cash flow would reflect the financial of the project, also the proposed electricity price.
The question is when there would be a blown out budget for the project due to delay in construction for unforseen circumstances, mis-management on investor side, then should the law liable to pay for such a compensation.
It is good to provide the best support to all our investors as best as we can. This will certainly to create more of the needed jobs for Khmer people.
Thanks to all hard working officials and may God blesses all of you for your dedication and sacrifices for Cambodia.
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