The Ministry of Industry, Mines and Energy is expected to award a a $270 million contract today to build what will be the country’s largest hydropower plant, Bun Narith, director of the ministry’s hydropower department, said Thursday.
At least 17 companies from Cambodia, Korea, Japan and China have placed bids so far to build the 180-megawatt hydroelectric power plant on the Komchay river in Kampot province.
The winning company must first take a year to design the plant, Bun Narith said. Once the ministry approves the design, construction can begin. The project is scheduled to be completed in 2008.
The power plant will supply a grid linking Kampot, Takeo and Kandal provinces and Phnom Penh, Bun Narith said. “I believe if everything goes smooth, we will be able to use the electricity from this hydroelectric plant by not later than 2008,” he said.
Kampot Governor Puth Chandarith saw the power plant as an economic opportunity. Investors have long complained that the price of electricity in Cambodia is about five times more expensive than in Thailand.
“If we can supply cheap power, we will attract investors from South Korea to set up manufacturing here,” he said Thursday, adding that Kampot is an ideal location to set up an industrial zone because of its proximity to Sihanoukville, Phnom Penh and Vietnam.
In Kampot, electricity produced by generators costs about $0.30 per kilowatt hour while electricity from the national grid, which services Phnom Penh, costs around $0.10 per kilowatt hour.
A few years ago, a Chinese company built a 12-megawatt hydropower plant in Kirirom National Park in Kompong Speu province that supplies power locally and to Phnom Penh. The capital needs about 100 megawatts of power per day, Bun Narith said.
When the Kampot plant
is completed, the state-run
Electricite du Cambodge has priority in purchasing the power, according to a ministry agreement.
Cambodian and Vietnamese officials met last month to discuss plans to jointly build a $400 million, 200-megawatt power plant in either Stung Treng or Ratanakkiri province. They plan to take three years to conduct a feasibility study and design the plant.
“EdC has enough ability to purchase [electricity] for wholesale and distribute to users,” Bun Narith said.
