China Eximbank provides RMB 475.4 million government concessional loan for 115kV Transmission Line and Substation from Phnom Penh to Bavet Project

On December 21, 2009, Chinese Vice President Xi Jinping and the Cambodian Ministry of Economy & Finance signed an agreement to provide a loan for the 115kV Transmission Line and Substation from Phnom Penh to Bavet Project. Then, on August 9, 2013, China Eximbank and the Government of Cambodia signed an RMB 475,414,600 government concessional loan (GCL) agreement [China EXIMBANK GCL NO. 2013 (36) Total NO. (481)] for the 115kV Transmission Line and Substation from Phnom Penh to Bavet Project. This agreement was approved by the Government of Cambodia on October 16, 2013. The GCL carried the following terms: 20-year maturity, 7-year grace period, and 1.25% interest rate. The proceeds of the GCL were used to finance an EPC (commercial) contract between Electricite du Cambodge (EDC) — the country’s state-owned electricity utility — and China National Heavy Machinery Corporation (CHMC), which was signed on December 28, 2012. The purpose of the project was to construct a 160km, 115kv transmission line from Phnom Penh to Bavet City via Kandal, Prey Veng, and Svay Rieng Provinces. The project also involved the construction of the Kampong Soeng Substation and Chrak Mteer Substation and the expansion of the Phnom Penh South Substation. This project is part of an electricity transmission loop line around Phnom Penh that connects it to transmission lines that brings electricity from all over Cambodia, including the Kamchay, Stung Tatay, Russey Chrum Krom, Cheay Araeng and Susan Krom II hydroelectric dams. CHMC was the EPC contractor responsible for implementation. A groundbreaking ceremony was held on February 27, 2014. The transmission line was electrified on February 2, 2017. The project was officially completed and handed over the project to the local authorities on April 19, 2017. Chinese Ambassador Xiong Bo and Cambodian Minister of Minerals and Energy Resai attended the handover ceremony.

Additional details

1. This project is also known as the Phnom Penh Babcock & Wilcox Power Transmission Project. The Chinese project title is 柬埔寨金边-巴威115kV输变电EPC工程项目. 2. In the Overseas Development Finance Dataset that it published in December 2020, Boston University’s Global Development Policy Center identifies the commitment year of the loan that supported this project. AidData relies on the commitment year of 2013 because of the specific date [August 9, 2013] when the loan agreement was signed [August 9, 2013] and the loan identification number [China EXIMBANK GCL NO. 2013 (36) Total NO. (481)].

Number of official sources

18

Number of total sources

32