Cambodia inks deal with Laos on the 2900-megawatt power purchase

• 12 September 2019
• Local News
• 5017 Views

The Cambodian government has inked a deal with the Laos government to purchase a total of 2,900 megawatts of power to fulfil the current shortage of electricity as well as to reduce the cost of electricity in the future.

Signed by Cambodian Prime Minister Hun Sen and Laos Prime Minister Thongloun Sisoulith, the agreement includes 1) importing 500-megawatts of hydropower, 2) purchasing 600-megawatts electricity from TSBP Sekong Power and Mineral Co. Ltd and 3) purchasing 1,800-megawatts power from Xekong Thermal Power Plant Co. Ltd.

The whole project is worth almost US$5 billion and, according to officials, is an exclusive purchase agreement with a term of 30 years.

After the project is implemented, Cambodia can purchase electricity for only US$7.7 cents / kWh, which is relatively cheaper than other coal-fired power plants in Cambodia.

The project will help reduce the current high cost of imported electricity from Vietnam and Thailand, as well as backstop the current electricity shortage, especially during the hot summer period.

The project will allow Cambodia to construct a new 500-kilovolt high voltage transmission line from Laos to Stung Treng province, and on to Phnom Penh. (Read More).

• Economy and Finance