Tuesday, September 21, 2010

Hydropower boosts Cambodia investment

September 21, 2010
Xinhua

Earlier this year, CHD signed an agreement for the construction of a hydropower plant in Cambodia.

The project will be one of the largest investments to date in the country's power sector, said Sun Qingsong, general manager of China Huadian Engineering Co.

The estimated cost of the CHD facility is $558 million. Huadian will finance the project following an agreement with the China Export-Import Bank.

The plant will be located 180 km west of Cambodia's capital, Phnom Penh, and will have a 338 megawatt capacity.

Chinese enterprises fund the bulk of Cambodia's new power generating facilities, said Sun.

The general manager explained Cambodian officials hope to establish 10 hydropower plants by 2019 in efforts to reach set electricity targets.

Between 2010 and 2019, the country will add 2 gigawatts of power capacity to its networks, said Sun.

Cambodia's current power generation capacity is around 200 megawatts. Its electrification rate is 20 percent - the second lowest among large Asian nations, said a recent World Outlook Report.

The country's government has endorsed foreign investment, but low electrification rates are a barrier to entry, said CHD representatives.

Business Monitor International reports real GDP growth in Cambodia is 4.9 percent. That number is expected to rise to 6.9 percent next year.

New power generation will be necessary to buttress projected economic development, said Sun.

8 comments:

Anonymous said...

china will electrify cambodia. thank you, china!

Anonymous said...

thank goodness. instead of electrocuting Cambodia and her people during the Pol Pot years.

Anonymous said...

11:14 AM,

You don't need to thank China. The project is mutually beneficial to both sides. China will never give you a dime without wanting a quarter back.

It is a deal where both sides get something out of it so don't make it sound like it is a gift from China.

Anonymous said...

There is not free meal but we thank China for coming to invest during this time. We don't care who they are, we welcome all FDI and thank them for putting confidence in Cambodian market. This create job and more important, electricity the most valuable asset we need urgently.

Anonymous said...

maybe this is in the form of tied aid: china gives money (low-interest rate loan or free money) to cambodia and ask the country to use chinese firm to do the job without auction out the work. common practice for almost all donors. much better it would be if aid were not tied.

Anonymous said...

All I can heard of are millions and billions of foreign investment in Cambodia; however, the country remains fucking poor.

Anonymous said...

you know, investments often complained about how cambodia is lack in electricity, etc! how you deal with that if not do something about it to rectify the shortage? hello! wake up, people! don't be be so selfish and hypocritical, ok! khmer people aren't stupid, you know!

Anonymous said...

10:19PM no! you are right only the Svaypark children are dumb!!!!