Chinese firm signs deal with Cambodia's electricity supplier to build rural power grids

Chinese firm signs deal with Cambodia's electricity supplier to build rural power grids

Xinhua | 30 March 2016

Lu Wenjun (L), chairman of China National Heavy Machinery Corporation (CHMC), shakes hands with Keo Rattanak, director-general of Cambodia's state-owned Electricite du Cambodge (EdC), during a signing ceremony in Phnom Penh, Cambodia, March 30, 2016. (Xinhua/Ka)

PHNOM PENH, March 30 (Xinhua) -- China National Heavy Machinery Corporation (CHMC) reached a contract with Cambodia's state-owned Electricité du Cambodge (EdC) on Wednesday to build rural power transmission lines, which will cover 13 provinces.

The contract was inked here between CHMC's chairman Lu Wenjun and EdC director-general Keo Rattanak.

According to a press release, about 85 percent of the nearly 100-million-U.S. dollar project will be funded through concessional loans from the Chinese government.

"When the project is completed, it will improve access to electricity in rural areas in 13 provinces," Lu Wenjun said.

"This project will contribute further to enhancing friendly relations and cooperation between China and Cambodia."

Keo Rattanak said that under the contract, the CHMC will take 36 months to construct the power grids, which will run through the provinces of Mondolkiri, Ratanakkiri, Tboung Khmum, Kampong Cham, Kratie, Prey Veng, Preah Vihear, Oddar Meanchey, Siem Reap, Battambang, Pursat, Koh Kong, and Preah Sihanouk.

"With this project, the quality of electricity in rural areas will be improved as electricity prices will be cheaper," he said.

"More than 100,000 households will get benefits from this project."