The critical 2,400 MW energy deal signed earlier this month by Electricité du Cambodge (EDC) and two independent power providers in Laos was made possible through facilitation by international law firm Reed Smith.
The recent signing of landmark agreements between EDC and two power providers in Laos PDR – Xekong Thermal Power Plant Company Limited and TSBP Sekong Power and Mineral Company Limited – took place with the support of Singapore-based Energy and Natural Resources partners Kohe Hasan and Bree Miechel, granting the Kingdom an energy deal lasting 30 years with power transfers commencing in 2024.
Neither Hasan nor Miechel are strangers to the Cambodian energy landscape and both carry with them a wealth of experience, highlighting EDC’s commitment to cooperating with expert international consultants.
Hasan, a partner at Reed Smith, acted on behalf of a Cambodian group in a joint venture dispute regarding a 270 MW power plant in the Kingdom, but this latest deal dwarfs her previous project here.
“We were delighted to be involved in such a milestone transaction which will have a meaningful impact on the lives of the people of Cambodia,” she said.
At a rate of 7.7 cents per kilowatt hour, 300 MW will be purchased in 2024, rising to 600 MW in 2025 and 2026, and 900 MW in 2027, according to Victor Jona, director-general of energy, who noted the rapid growth in demand across the Kingdom ranging from 17 to 20 percent each year.
Data provided by the Ministry of Mines and Energy showed that Cambodia consumed 2,650 MW in 2018, as such the landmark deal secured by Reed Smith should go a long way toward guaranteeing energy security in the Kingdom, as well as strengthening ties with neighbouring Laos.
Keo Rattanak, Minister attached to the Prime Minister and Managing Director of EDC commended the signing of the deal and the significance of the work that went into it.
“It was a privilege working with the Reed Smith team. They are extremely driven, highly professional and were able to deliver under very tight timelines. Kohe knows the Cambodian market well and that helps with the smooth progress of the transaction,” he said.