China Provides US$80 million Loan to Light Up 133 Villages in Cambodia

The Chinese government has agreed to provide an US$80 million concessional loan for Cambodia to build almost 3,000 kilometres of sub-transmission electrical line connecting 133 rural villages in 14 provinces to the national grid.

The concessional loan will be signed in August and is among other seven projects after the Cambodian and Chinese government reached a deal last week during the Cambodia-China Intergovernmental Coordinating Committee 2019-2023.

Spokesman for the Ministry of Mines and Energy Victor Jona said on 28 July project will costs around US$82 million which will be used to build a 2,970 km sub-transmission electrical line. 5% of the budget will be from the government while the rest is provided under the Chinese concessional loan.

“After the deal signed, it will not take long as, in general, loans from China are easy to receive. Upon completion, this sub-transmission electric line will contribute to about 1% of total villages nationwide,” said Mr Jona.

Minister of Mines and Energy H.E Suy Sem said the project to connect rural areas to the national grid is a prioritised project when requesting loans from China.

The project includes 22kV and 35kV sub-transmission electrical lines with a total length of 2,970km. It will cover 133 villages in 14 provinces, H.E. Suy Sem said in a post on the ministry’s Facebook page.

The target provinces are Oddor Meanchey, Siem Reap, Battambang, Palin, Pursat, Kratie, Prey Veng, Thbong Khmum, Kampong Speu, Kampong Chhnang, Stung Treng, Takeo, and Kampot.

Regarding the grid connectivity, Mr Jona said that the plan to electrify 100% of the 14,168 villages nationwide would not be completed by 2020 as scheduled, and is expected to be delayed to 2021. Meanwhile, by the end of 2020, 98% of total villages are expected to be connected to the grid.

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