Cambodia: Second Power Transmission and Distribution Project

Sovereign Project | 37041-013

Summary

Sihanoukville, Cambodia's only deep-sea port, is a fast-growing city with major ongoing developments to (i) expand the port facilities, (ii) upgrade the airport, and (iii) set up an export processing zone, thus making Sihanoukville an import gateway to the southern economic corridor. No power transmission grid connects Sihanoukville to the national grid. The city gets its power from a small, isolated power system based on diesel generators. This mode of power generation is expensive, inefficient, as it does not achieve economies of scale, and cannot meet the demand. The Project will complement previous investments in the transmission and distribution facilities. It will (i) extend the 230 kilovolt (kV) transmission line from Kampot to Sihanoukville, (ii) build associated substations and bulk supply distribution facilities, and (iii) carry out institutional development and capacity building for Electricit du Cambodge (EDC).

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Project Name Second Power Transmission and Distribution Project
Project Number 37041-013
Country Cambodia
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2261-CAM: Second Power Transmission and Distribution Project
Asian Development Fund US$ 20.00 million
Loan: Second Power Transmission and Distribution Project
Japan Bank for International Cooperation (ODA) US$ 22.30 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming Some gender elements
Description Sihanoukville, Cambodia's only deep-sea port, is a fast-growing city with major ongoing developments to (i) expand the port facilities, (ii) upgrade the airport, and (iii) set up an export processing zone, thus making Sihanoukville an import gateway to the southern economic corridor. No power transmission grid connects Sihanoukville to the national grid. The city gets its power from a small, isolated power system based on diesel generators. This mode of power generation is expensive, inefficient, as it does not achieve economies of scale, and cannot meet the demand. The Project will complement previous investments in the transmission and distribution facilities. It will (i) extend the 230 kilovolt (kV) transmission line from Kampot to Sihanoukville, (ii) build associated substations and bulk supply distribution facilities, and (iii) carry out institutional development and capacity building for Electricit du Cambodge (EDC).
Project Rationale and Linkage to Country/Regional Strategy

The power sector in Cambodia is highly fragmented, with 24 isolated power systems centered on the various provincial cities. The lack of an integrated high-voltage transmission system, coupled with the high cost of imported diesel fuel, has made electricity in Cambodia among the costliest in the world. The Government recognizes that the high cost of electricity and inadequate supply significantly limits economic growth and hinder the country from attracting investments and stimulating economic activities. ADB and other development partners are assisting the Government in building 230 kV backbone transmission lines in the southern part of the country, originating at a substation on the border with Viet Nam and passing through Takeo to Kampot and also to Phnom Penh. These facilities will allow EDC to import lower-cost electricity from Viet Nam at $0.05-$0.07 per kilowatthour

(kWh) (at off-peak and peak hours) to meet the power demand in Phnom Penh, Takeo, Kampot, and, ultimately, Sihanoukville.

Impact The national power grid in the region is extended, and provides reliable, adequate, and affordable electricity. The quality of power supply in the southern region improves.
Project Outcome
Description of Outcome The national backbone 230 kV power grid and associated distribution facilities in the southern region are expanded and strengthened, and EDC's operation efficiency and performance are improved.
Progress Toward Outcome

(i) Construction of 82 km of high-voltage 230 kV double-circuit transmission line from Kampot to Sihanoukville (financed under JICA loan) was completed in February 2013.

(ii) Construction of the 230 kV Stung Hav Substation and installment of two line bays in Kampot Substation were completed in December 2012, and have been in operation since 21 March 2013. Construction of the 115 kV Sihanoukville substation was completed in June 2014.

(iii) The medium-voltage 22 kV double-circuit distribution lines in Sihanoukville connecting to the 230 kV substation and the existing 22 kV network, and 22 kV feeders from Sihanoukville serving nearby villages were completed in June 2014.

(iv) Capacity building activities completed. A contract for providing support to EDC in establishing a consolidated data platform and improving communication systems completed. Two EDC staffs completed their Masters degree on social and environmental science.

The loan was closed on 30 November 2014, and all project expenditures will be disbursed within 3 months after this loan closing date.

Implementation Progress
Description of Project Outputs

(i) 230 kV transmission lines from Kampot to Sihanoukville are fully operational.

(ii) Three new substations are fully functional.

(iii) Associated medium- and low-voltage distribution system are established along the 230 kV transmission corridor.

(iv) Capacity building to improve EDC's performance is fully implemented.

Status of Implementation Progress (Outputs, Activities, and Issues)

Construction of 82 km of high-voltage 230 kV double-circuit transmission line from Kampot to Sihanoukville (financed under JICA loan) was completed in February 2013.

(i) Construction of 230 kV Stung Hav Substation (in Sihanouville) completed and fully operational since 21 March 2013; (ii) Construction of 115 kV Sihanoukville substation completed in June 2014; and (iii) installment of two line bays in Kampot Substation completed in December 2012 and fully operational since 21 March 2013.

EDC provided compensation to 408 affected households.

Erection of 40 km of medium voltage 22 kV double- circuit distribution lines completed. Capacity building activities completed. Contract for providing support to EDC in establishing a consolidated data platform and improving communication systems completed. Two EDC s staff completed their Masters degree program related to social and environmental aspects at the Asian Institute of Technology in Thailand.

Environmental mitigation measures implemented.

Staff of EDC s branches at Kampot and Sihanoukville attend routine training programs on operation and maintenance at EDC Training Center.

Training programs for EDC staff implemented.

Completed.

Geographical Location Sihanoukville, Kampot
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Mitigation measures as outlined in the environmental management plan (EMP) implemented by the contractors and monitored by EDC.
Involuntary Resettlement Under the approved resettlement plan, a total of 418 households are affected by the 230kV Transmission line. Implementation of this resettlement plan completed.
Indigenous Peoples The Project is not affecting indigenous people as defined under ADB's Safeguard Policy Statement (2009).
Stakeholder Communication, Participation, and Consultation
During Project Design The project team conducted various consultations with all relevant stakeholders during the project design.
During Project Implementation The project team conducted various consultations with all relevant stakeholders, including project beneficiaries and affected peoples during loan review missions.
Business Opportunities
Consulting Services

Project implementation consulting services will be required during implementation to assist EDC in (i) preparing preliminary designs and bidding documents for the bidding of the works; (ii) bid evaluations; (iii) supervision of installation and construction; (iv) final testing and commissioning; (v) quality assurance; (vi) implementation of the environmental management plan, the resettlement plan, and the land acquisition and compensation program; and (vii) project performance monitoring and evaluation. About 40 person-months of international and 45 person-months of domestic consultant inputs will be required. Consultants will be recruited through a firm by EDC, in accordance with the ADB's Guidelines on the use of Consultants and other arrangements satisfactory to ADB for the selection and engagement of domestic consultants.

Consulting service for institutional strengthening and capacity building for Ministry of Industry, Mines, and Energy (MIME) and EDC will be provided and financed by the co-financier.

Procurement Procurement of goods and services financed from the proposed ADB loan will be carried out in accordance with ADB's Guidelines for Procurement. The major works for the ADB-financed portion of the Project will be (i) a turnkey contract for the substations at Sihanoukville and Kampot; (ii) supply of materials and equipment, (iii) resettlement and compensation; and (iv) consulting services. Procurement of goods and services financed from other sources will be in accordance with the guidelines of the corresponding cofinancing agencies.
Responsible ADB Officer Ouk Nida
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Cambodia Resident Mission
Executing Agencies
Electricite Du CambodgeKeo Rottanakrottanak@online.com.khPreah Yokunthor St. Sangkat Wat Phnom, Phnom Penh, Cambodia
Timetable
Concept Clearance 25 Jan 2005
Fact Finding 22 Nov 2005 to 01 Dec 2005
MRM 24 Apr 2006
Approval 04 Oct 2006
Last Review Mission -
PDS Creation Date 04 Apr 2006
Last PDS Update 30 Jan 2015

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 32.36 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 10.06 Cumulative Disbursements
Cofinancing 22.30 - 0.00 0.00 %

Loan 2261-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Oct 2006 01 Dec 2006 29 Jan 2008 31 Dec 2010 30 Nov 2014 10 Mar 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.36 Cumulative Contract Awards
ADB 20.00 04 Oct 2006 20.62 0.00 100%
Counterpart 10.06 Cumulative Disbursements
Cofinancing 22.30 04 Oct 2006 20.62 0.00 100%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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