Laws on Payment Guarantee for Four Large-Scale Energy Projects Promulgated

• 29 July 2021
• Local News
• 2209 Views

His Majesty the King of Cambodia has signed and officially promulgated four new laws securing that the government will make payments as agreed to three private firms for investing in four large-scale energy-related projects.

The first and second laws are made for SchneiTec Co Ltd for developing a 500 kV transmission line from Battambang to the Cambodian-Thai border, and a 500 kV transmission line from Phnom Penh to the Cambodia-Laos border.

The third law is made for Vietnam Electricity to guarantee the purchase of electricity from Vietnam.

The last one is made for the China National Heavy Machinery Corporation for constructing a 150-megawatt Steung Tatay hydropower in Koh Kong province.

In simple terms, these laws are similar to a purchase guarantee agreement between the government and the private firms investing in large investment projects.

These three firms have already actually entered into an agreement with EDC through the Ministry of Economy and Finance, where the government has agreed to buy the electricity from them at the agreed rate.

However, the laws are made to emphasise and secure the duties of each party, requiring that the private firms must follow all the laws and regulations during the project development while the government must keep the promise to make the payment even in cases of political instability.

This law will also build more confidence and trust for the investors, which as a result will also enhance the investment environment in Cambodia.

• Laws and Regulation
• Energy and Environment