Bank of China provides $54.5 million loan for Phase 1 of the CIIDG–Huadian Sihanoukville Coal Power Plant Project (Linked to Project ID#39019)

On April 26, 2011, the Government of Cambodia and Cambodia International Investment Development Group signed an Implementation Agreement (IA) regarding Phase 1 of the CIIDG–Huadian Sihanoukville Coal Power Plant. Under the terms of the agreement, Cambodia International Investment Development Group agreed to implement Phase 1 of the CIIDG–Huadian Sihanoukville Coal Power Plant according to a 33-year build-own-operate (BOO) scheme. On the same day, Cambodia International Investment Development Group and Électricité du Cambodge (EDC) signed a Power Purchase Agreement (PPA). Then, on June 9, 2011, the Government of Cambodia agreed to guarantee the payment (power purchase) obligations of EDC and Cambodia’s Ministry of Industry, Mines and Energy to Cambodia International Investment Development Group Co., Ltd. under the PPA and the IA. On or around May 8, 2012, the Phnom Penh Branch of Bank of China Limited signed a $54,500,000 loan agreement with CIIDG Erdos Hongjun Electric Power Company Limited (CIIDG 鄂尔多斯鸿骏电力有限公司) — a special purpose vehicle and joint venture of Cambodia International Investment Development Group (49% equity stake) and Inner Mongolia Erdos Hongjun Electric Power Company Limited (51% equity stake) — for Phase 1 of the CIIDG–Huadian Sihanoukville Coal Power Plant. The purpose of Phase 1 was to construct a 405 MW coal-fired power plant — with three 135 MW generators — in Village 2, Kampenh Commune, Stung Hav District, and Preah Sihanouk Province (exact locational coordinates: 10.7325567, 103.5834703). Inner Mongolia Electric Power Survey and Design Institute Co. Ltd and Tianjin Research Institute for Water Transport Engineering were responsible for project design. Northwest No. 3 Electrical Power Construction Company was involved in the construction and installation of the 3 × 135 MW generating units. CCCC First Harbour Engineering Co. Ltd was involved in the construction of two 20,000-tonne bulk cargo berths and jetty for offloading coal. China MCC5 Group Corporation was involved in the guilding and installation of boiler-supporting frame structure. Construction began on January 1, 2012. Unit #1 and Unit #2 were separately put into the commercial operation on November 14, 2014 and March 19, 2015, respectively. Unit #3 was put into commercial operation in 2017. Residents in the area reportedly suffered due to improper handling of coal ash waste from the CIIDG–Huadian Sihanoukville Coal Power Plant and two other nearby plants. Since the 405 MW of Phase 1 connected to the grid in 2017, there has been no news on Phase 2 (which would have involved four more 135 MW generators). The Phase 2 plan seems to have been abandoned. In 2016, it was reported that the plant would power a nearby aluminum factory, but no such factory existed as of September 2021.

Additional details

1. This project is also known as the CIIDG 1 Project. The Chinese project title is 西哈努克港7×135W燃煤电厂 or CIIDG 鄂尔多斯鸿骏西哈努克燃煤电厂项目 . 2. CIIDG is a local conglomerate, which, according to the Cambodian company register, is owned by the wife and children of Cambodian Senator Lao Meng Khin. CIIDG is linked to several energy-generation and transmission projects, including the CIIDG–Huadian Sihanoukville Coal Power Plant, which is adjacent to this project. When it was registered, Inner Mongolia Erdos Hongjun Investment Company Limited (内蒙古鄂尔多斯鸿骏投资有限公司) was 50% owned by the Erdos Group (内蒙古鄂尔多斯投资控股集团有限公司), a private enterprise from Inner Mongolia, and 50% by Qingdao Dezheng Resources Holding Company Limited(德正资源控股有限公司). The latter company was involved in a corruption scandal in China resulting in its chairman, Chen Jihong, being imprisoned for 23 years in 2018. In 2016 Erdos Group acquired the 50% stake from Dezhang and is now the 100% owner. However, Cambodia’s company register still lists Chen as a director of CIIDG Erdos. 3. The total cost of Phase 1 was reportedly $383 million. It seems very unlikely that a $383 million was finance with only $54.5 million of debt. This issue warrants further investigation.

Number of official sources

8

Number of total sources

27