Transmission improvement financing for Cambodia
MIGA has guaranteed that it will support the refinancing of the existing power transmission infrastructure in Phnom Penh, and its surroundings.
Image source: Khmer
Cambodia, Phnom Penh: MIGA, a member of the World Bank Group, has guaranteed that it will support the refinancing of the existing power transmission infrastructure in Cambodia’s capital, Phnom Penh, and its surroundings.
The move paves the way for commercial funding to replace financing previously offered by the Export-Import Bank of Malaysia Berhad.
The project, implemented and operated by Cambodian Transmission Limited, consists of a 230 kV transmission network that connects the Phnom Penh region with power generators in the east and northeast of the country.
The network also provides an interconnection to the Cambodia-Vietnam and Cambodia-Thailand borders in the south and northwest of the country respectively.
Encouraged by an improving economy and accelerated growth, the project became operational in 2013 and is part of an overall strategy to bring power from additional sources to the greater Phnom Penh region to meet the growing critical energy needs of the capital and its surroundings.
The guarantees were issued to Mizuho Bank of Japan and ING Bank of the Netherlands through its Singapore Branch. They amount to $76 M and cover the lenders’ loans for up to 10 years. The guarantees will provide protection against currency inconvertibility and transfer restriction, expropriation, breach of contract and war and civil disturbance.
The development of Cambodia’s transmission sector is a national priority.
At this early stage in the nation’s infrastructure development, refinancing is anticipated to draw needed private investments from local and international developers.
Source: Khmer Times