Chinese Firm to Build Hydroelectric Dam
Thursday May 12, 12:44 am ET
Chinese Firm Wins Contract to Build Hydroelectric Dam in Cambodia
PHNOM PENH, Cambodia (AP) -- A state-run Chinese company has won a contract to build a $270 million hydroelectric plant in southwestern Cambodia beginning early next year, an official said Thursday.
The Sino Hydro Corp. will take up to four years to construct the dam, which will be able to generate up to 180 megawatts of electricity during the rainy season, said Bun Narith, hydropower department director at Cambodia's Industry Ministry.
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The company will have the right to operate the plant for 30 years, and the contract may be renewed, he said.
Five foreign companies -- three from China, one from Japan and one from Canada -- were shortlisted as potential bidders. But only two -- Sino Hydro Corp. and China Guodian Corp. -- submitted bidding proposals, said Bun Narith.
The new dam will be about 135 kilometers (85 miles) southwest of the capital, Phnom Penh. Electricity will be distributed through grid lines to Phnom Penh through Takeo, Kampot and Kandal provinces.
Electricity generation in Cambodia remains largely undeveloped. Phnom Penh gets electricity from generator plants that are powered by fossil fuels and are struggling to meet growing demand.
Power prices in Cambodia are among the highest in the region, and a major source of complaints from investors in the impoverished Southeast Asian nation.
Bun Narith said the new dam would provide a "more sustainable supply that will also help bring down the price of electricity consumption."
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