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Published on January 31, 2008

The Export-Import Bank of Thailand and the Asian Development Bank (ADB) are extending US$7 million (Bt232 million) each to fund the construction of transmission lines across the Thai-Cambodian border.

The construction undertaken by (Cambodia) Power Transmission Lines aims to supply electricity for the growing industrial and tourism sectors in Cambodia.

Exim president Apichai Boontherawara said the project would be loaned $20 million from the two banks and others in cooperation with Gramercy Advisors/Arco Capital Management Family of Funds (Arco) and Cambodia's Foreign Trade Bank (FTB).

Of the $20 million, Exim and the ADB are offering $7 million each, while Arco will extend $4 million and FTB $2 million.

The financial package was offered to (Cambodia) Power Transmission for use in the construction of 115-kilovolt, double-circuit transmission lines running 221 kilometres from Thailand's Aranyaprathet district in Sa Kaeo province to Banteay Meanchey, Battambang and Siem Reap in Cambodia.

The development includes one industrial estate switching station at the Thai-Cambodian border and three substations in the three Cambodian provinces.

According to the Exim president, the loans mark an important milestone in the cooperation of Exim and the ADB to foster the development of the infrastructure and overall economies of the countries of the Greater Mekong Subregion.

This is also the first ADB private-sector infrastructure project in Cambodia.

The development aims to meet rapidly increasing electricity demand in Cambodia in response to the growth of its economy, particularly the industrial and tourism sectors.

Meanwhile, Thailand will benefit from increased construction contracts and electricity sales to Cambodia.

With a nationwide generation capacity of 247 megawatts and small diesel-fuelled electricity generators mainly used for business and household consumption, Cambodia is faced with power shortages and high electricity prices in contrast to the rising demand for power, particularly in Siem Reap, home to the major tourist attraction of Angkor Wat.

The Nation