Cambodia Approves Two 500 kV Transmission Line Projects

The Government of Cambodia’s Council of Ministers approved two 500 kilovolt (kV) transmission line investment projects in (i) Phnom Penh to the Cambodia-Lao PDR border, and (ii) Battambang to the Cambodia-Thailand border, to prepare to import electricity from its neighbors. The Government of Cambodia is working on increasing the country’s electricity capacity to improve production and competitiveness. Cost of electricity in Cambodia is one of the highest in the region.

The two transmission line projects will operate under a build-operate-transfer concession scheme. The Phnom Penh–Cambodia–Lao PDR border transmission line, estimated to cost around $330 million, will be built for three years and have a 28-year contract. The Battambang province–Cambodian–Thai border transmission line, estimated to cost around $111 million, will be built for four years and have a 39-year contract. The construction of these power transmission lines will start next year, according to Mr. Victor Jona, Director General of Energy, Ministry of Mines and Energy of Cambodia.

The Road Map for Expanded Energy Cooperation in the GMS highlights that regional cooperation is an effective way to ensure cost-effective energy supply. GMS's energy sector initiatives have centered around the power sector, with focus on cross-border electricity trading and the interconnection of transmission networks to connect strong energy demand growth centers with rich indigenous energy resource centers.