Koh Kong power to go to Thais
Thursday, 29 March 2012
Don Weinland and May Kunmakara
The Phnom Penh Post
Thailand’s Ratchaburi probably sought the venture in Cambodia because of the scrutiny such a project would attract at home, Suzuki Hiroshi, CEO and chief economist at the Business Research Institute for Cambodia, said yesterday.
“[Thailand] has received very strong criticism from environmentalists on projects like this,” he said, adding that the Cambodian government should conduct a proper environmental impact assessment for the plant.
Cambodian tycoon Ly Yong Phat has signed a US$3 billion joint-venture agreement with Thai energy firm Ratchaburi Electricity Generating Plc on what would be the Kingdom’s largest power station.
Just under 90 per cent of the power, however, would be sold to Thailand. The 1,800 megawatt coal-fired plant, to be built in Koh Kong province, would sell 1,600 megawatts to the Kingdom’s western neighbour, Ly Yong Phat said by phone yesterday.
Construction would start in as soon as two months, and the newly formed joint venture, KK Power, was in negotiations with Thai officials on the price at which the power would be sold, said Ly Yong Phat, now the JV’s CEO. He declined to comment on the company’s ownership structure. “We already agreed in principle with the Thai side, but now the problem is negotiations on tariffs and linkage,” he said.
The Cambodia People’s Party senator and founder of LYP Group has stakes in hotels, entertainment, utilities, plantations and other interests in Koh Kong.
