THE National Assembly of Cambodia yesterday approved a draft provision of a state guarantee for three new power projects, one of which is a 700 megawatt (mW) coal-fired power plant investment to be undertaken by the Royal Group.
All three power projects are contracted under a power purchase agreement with Electricite Du Cambodge (EDC). The agreement is a state guarantee that pays investors if the facilities fail to operate as per the purchase agreement.
The first project is the 700 mW coal-fired power plant, an investment by Royal Group. This project is valued at $1.344 billion and will be built in Botom Sakor district, Koh Kong province. The plant will comprise two generators. One will be a 350 mW generator that is scheduled to generate power in 2023 and the other a 350 mW generator that is scheduled to generate power in 2024.
The other project is a 265 mW coal-fired power plant operated by Han Seng Coal Mines Co Ltd and will be located in Trapang Prasat district, Oddor Meanchey province. It cost $294 million and the plant is scheduled to generate 130 mW in 2021 and increase to 265 mW in 2022.
In addition, the 265 mW coal-fired power plant is the first-ever power plant to use coal extracted from Cambodia.
The third project is a 230 kilovolt (kV) transmission line, which is planned to link the coal-fired power plant in Oddor Meanchey province to the sub-power station in Siem Reap province.
Cheam Yeap, chairman of the National Assembly Commission on Economy, Finance, Banking and Audit said in a parliamentary session, that the investment in power projects contributes to the development of the country’s economic growth, while the impact to the environment is said to be at a controllable level.
“These power projects benefits will widely contribute in implementing the government’s policy on reducing power tariffs for its developing economy and eliminating the poverty of Cambodian people,” Cheam said.
“These draft provision state guarantees on power projects will also make Cambodia more self-independent for its electricity supply.
“In turn, this will allow the price of electricity to decrease over the coming years and promote people’s living standards.”
Cambodia already has three existing coal-fired power plants that generate 740 mW of power to the main grid. These power plants are located in Stung Hav district, Preah Sihanouk province.
In addition, the government has also approved another 700 mW coal-fired power plant in Stung Hav. Having started construction last year, this plant is scheduled to start generating power this year.
Power supply rose by 28 percent in 2019 to 3,382 mW, according to an annual report from the Ministry of Mines and Energy.