11/23/2016

Chinacompletelyfinancesnearlyallof
Cambodiashydropowerprojects
ISTANBUL,Turkey
10/13/2016
ByGregoryB.Poindexter
AssociateEditor

AccordingtoSuySem,ministerofCambodiasMinistryofMinesandEnergy(MME),withtheexceptionof
theUS$781million400MWLowerSesan2projectontheSeSanRiverinnortheasternCambodia,Chinese
companieshaveprovided100%ofthefinancingforallhydropowerprojectsinCambodia.

AccordingtoXinhua,SemmadethecommentsOct.10attheWorldEnergyCongressinIstanbul,Turkey.

Theestimatedcostfortheplantsisabout$2.4billiondollarsandisalsopartofSinoCambodiancooperation
intheenergysectorundertheOneBelt,OneRoad(OBOR)initiative,hesaid.

SemsaidsixhydropowerprojectshavebeenbuiltinCambodiaandconstructionoftheseventh,theLower
Sesan2,is70%complete.

TheLowerSesan2,expectedtobecommissionedin2017,isajointventurebetweenChinese,Cambodian
andVietnamesecompanies.ChinesefirmLancangHydropowerInternationalEnergyholds51%ownership,
CambodiasRoyalGroupowns39%andVietnamsEVNInternationalowns10%.

Theoperationalplantsincludethefollowing:

12MWKirirom1
18MWKirirom3
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120MWStungAtai
194.1MWKamchay
246MWStungTataiand
338MWRusseyChrumKrom.

AccordingtoSem,Cambodiashydropowerplantshavebeendevelopedunderbuildoperatetransfer
contractsandattheconclusionofoutlinedconcessions,whichSemdidnotspecify,eachplantsownership
willtransfertotheCambodiangovernment.

SemsaidelectricitydemandinCambodiahasbeenincreasingeachyearandthe928MWannuallygenerated
fromthesixoperationalhydroelectricplantscurrentlyrepresentsabout47%ofavailableelectricityin
Cambodia.

PublishedreportsindicateCambodiastheoreticalhydropowerpotentialisgreaterthan10,000MW.

OneBelt,OneRoad

AccordingtotheWorldBank,ChinasPresident,XiJinping,launchedChinasOneBelt,OneRoad
initiativein2013withthestatedaimtoconnectmajorEurasianeconomiesthroughinfrastructure,tradeand
investment.Theinitiativewaslaterspecifiedtocontaintwointernationaltradeconnections:Thelandbased
SilkRoadEconomicBeltandoceangoingMaritimeSilkRoad.

TheBeltisanetworkofoverlandroadandrailroutes,oilandnaturalgaspipelines,andother
infrastructureprojectsthatwillstretchfromXianincentralChinathroughCentralAsiaandultimatelyreach
asfarasMoscow,RotterdamandVenice.Ratherthanoneroute,beltcorridorsaresettorunalongthemajor
EurasianLandBridges,throughChinaMongoliaRussiaChinaCentralandWestAsiaChinaIndochina
PeninsulaChinaPakistanandBangladeshChinaIndiaMyanmar.

TheOBORinitiativeisbackedbytheAsianInfrastructureInvestmentBank(AIIB)andtheSilkRoadFund,
partofthestrategicpolicyforenhancingcooperationbetweenChinaandothercountries.

CambodianisoneofAIIB'sfoundingmembers.

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