A state-owned Cambodian electricity supplier is shortening the duration of a power purchase agreement that it has with a unit of Asiatic Group (Holdings).
Colben Energy (Cambodia) – which is an indirect 85 per cent subsidiary of Asiatic – has received a letter from Electricite Du Cambodge (EDC) to bring forward the term of the agreement to Aug 31 this year. “During two meetings with the official from EDC in January and February, EDC has informed Colben that based on goodwill and in good faith, EDC has extended the power purchase agreement term for Colben three times,” engineering group Asiatic said in a filing to the Singapore Exchange on Thursday.
Under the agreement – which was last extended in May 2019 – Colben would have continued to supply electricity generated from its two 10 MW power plants in Phnom Penh and Sihanoukville for a three-year period ending April 30, 2022. The agreement also listed the minimum electrical amount that EDC needed to purchase, at 65 per cent of the contracted capacity.