Cambodia: Rural Energy Project (formerly Rural Energy Pilot Project)

Sovereign Project | 45303-001

Summary

The project addresses both power and non-power energy supply in rural Cambodia through (i) electrifying up to 13,700 households in Svay Rieng Province by extending the 22 kilovolt medium-voltage sub-transmission line and the low-voltage distribution network and installing meters; (ii) promoting the use of up to 90,000 improved cookstoves with higher efficiency in rural areas of Kampong Cham Province; and (iii) developing the capacity of Electricity Authority of Cambodia (EAC) which is the regulatory body overseeing the power sector. It is proposed that the Asian Development Bank (ADB) will administer a grant of $6.110 million provided by the Government of Australia (represented by the Australian Agency for International Cooperation; AusAID) for the implementation of the project, inclusive of ADB's administration fee and other relevant costs.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Rural Energy Project Apr 2014

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Project Name Rural Energy Project (formerly Rural Energy Pilot Project)
Project Number 45303-001
Country Cambodia
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0336-CAM: Rural Energy Project (formerly Rural Energy Pilot Project)
Australian Grant US$ 6.11 million
Grant 0336-CAM: Rural Energy Project (formerly Rural Energy Pilot Project)
Australian Grant US$ 363,644.91
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project addresses both power and non-power energy supply in rural Cambodia through (i) electrifying up to 13,700 households in Svay Rieng Province by extending the 22 kilovolt medium-voltage sub-transmission line and the low-voltage distribution network and installing meters; (ii) promoting the use of up to 90,000 improved cookstoves with higher efficiency in rural areas of Kampong Cham Province; and (iii) developing the capacity of Electricity Authority of Cambodia (EAC) which is the regulatory body overseeing the power sector. It is proposed that the Asian Development Bank (ADB) will administer a grant of $6.110 million provided by the Government of Australia (represented by the Australian Agency for International Cooperation; AusAID) for the implementation of the project, inclusive of ADB's administration fee and other relevant costs.
Project Rationale and Linkage to Country/Regional Strategy

Cambodia's national electrification rate at 35% (as of end 2012) fares extremely low in Southeast Asia. The situation is dire in the rural areas where the electrification rate is only 11% and where more than 11 million people still use charged automobile batteries for electricity, and kerosene and candles for lighting. In contrast, electricity tariffs are one of the highest in the world as its fragmented grids are mostly supplied by diesel power generators using expensive imported fuel. The residential consumer tariff of the national power utility, Electricite du Cambodge (EDC), is $0.17/kWh in Phnom Penh. Areas not supplied by EDC are serviced by rural electricity enterprises (REEs) which are private service-providers of electricity. REE tariffs range between $0.28 and $0.30/kWh if the REE makes bulk purchases of electricity from EDC, and between $0.65 and $0.90/kWh if self-generated. For the population not grid-connected, the cost of a charged automobile battery is calculated to be as high as $1.00/kWh.

In Cambodia, 93% of the population relies on combustion of traditional biomass for cooking, Where traditional biomass is burned, it is reported that women and children are exposed to air pollution levels in the form of particulates that can reach 20 times the maximum recommended levels. Burning wood for cooking also degrades the local environment through cutting of trees, and adds to the emission of greenhouse gases.

The project is not included in the Country Operations Business Plan 2011-2013, but is fully aligned with the National Strategic Development Plan Update 2009-2013 of the Government of Cambodia, which calls for the development of the energy sector through expansion of the electricity network to achieve the overarching objective of reducing poverty to 19.5% by 2015. The project also corresponds to the objective of ADB's Country Partnership Strategy for 2011-2013 of inclusive economic growth through the development of physical infrastructure such as power transmission, distribution and rural electrification. Furthermore, the project is coherent with the United Nations General Assembly's declaration of the year 2012 as the International Year of Sustainable Energy for All in recognition of the importance of energy access to achieve the Millennium Development Goals.

Impact Increased access to economical and reliable energy supply by rural communities.
Project Outcome
Description of Outcome Expanded supplies of reliable grid-electricity and NKS.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Expanded medium-voltage and low-voltage networks in Svay Rieng Province.

Established manufacturing and distribution network for NKS in Kampong Cham Province.

Developed regulatory capacity of EAC.

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

A. Component 1 - Electrification of Svay Rieng province

(i) EPC contract - Deadline for submission of bids was 20Aug2014 and bids were opened on the same date. All submitted bids were evaluated based on the criteria set forth in the bidding documents and the bid evaluation report prepared by EDC was submitted to ADB on 5Mar2015 for review.

(ii) PIC consultants - draft TOR and EOI was submitted by EDC to ADB for review. Following this review and incorporation of comments from ADB, EDC will send a formal letter to ADB requesting for further review and approval of the revised TOR and EOI.

(iii) Impact assessment - ADB prepared the TOR for the consultants and sent to EDC and AusAID for comments. No response was received to date.

B. Component 2 - Promotion of NKS in Kampong Cham province: MME concluded contract signing and awarded the contract to GERES.

C. Component 3 - Capacity development of EAC: EAC completed the recruitment of resource person and contract awarded to first ranked candidate.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project s environment categorizations is classified as B. Initial environmental examination and land acquisition and resettlement plan need to be prepared in accordance with ADB s Safeguard Policy Statement (2009). As the MV and LV lines will be established along existing rural roads in Svay Rieng Province, no significant environmental impacts are expected due to the project. The social impact is also expected to be limited to compensation of trees and other assets in the existing right-of-way.
Involuntary Resettlement The project s involuntary resettlement impact categorizations is classified as B. There is no involuntary resettlement, land acquisition, or involuntary restriction of access to land and/or economic opportunities. Adverse impacts are not envisaged from the improved cooking stoves component, but due diligence will be conducted to reconfirm.
Indigenous Peoples It has been confirmed that there are no indigenous peoples in the project areas, and that the population are mainstreamed into the society and economic activities. Indigenous peoples categorization is C.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

(i) Grant was declared effective on 5 March 2014. A grant inception mission was fielded on 1-3 April 2013 to discuss implementation of the grant.

(ii) Component 2: Promotion of NKS in Kampong Cham Province - contract negotiations completed and contract awarded to the selected consulting firm (GERES). Fielding of consultants started 16 December 2014.

(iii) Component 1: Rural Electrification of Svay Rieng Province - EDC completed the review of bids received under this package and the bid evaluation report has been submitted to ADB for review.

Responsible ADB Officer Rehan Kausar
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Electricite Du CambodgeSt 19 Watt Phnom, Daun Penh District
Phnom Penh, Cambodia
Timetable
Concept Clearance 12 Oct 2011
Fact Finding 31 Jan 2012 to 09 Feb 2012
MRM 03 Oct 2012
Approval 15 Jan 2013
Last Review Mission -
Last PDS Update 23 Mar 2015

Grant 0336-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Jan 2013 05 Dec 2013 05 Mar 2014 30 Jun 2015 30 Jun 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.28 Cumulative Contract Awards
ADB 0.00 15 Jan 2013 0.00 0.65 11%
Counterpart 4.81 Cumulative Disbursements
Cofinancing 6.47 15 Jan 2013 0.00 0.09 1%
Title Document Type Document Date
Rural Energy Project: Project Data Sheet (Khmer Translation) Translated PDS Apr 2014
Rural Energy Project Procurement Plans Apr 2014
Grant Agreement (Externally Financed) for Rural Energy Project Grant Agreement Dec 2013
Project Agreement for Rural Energy Project Project/Program Agreement Dec 2013
Rural Energy Project Gender Action Plans Dec 2012
Rural Energy Project Reports and Recommendations of the President Dec 2012
Rural Energy Project Project/Program Administration Manual Dec 2012
Rural Energy Project Initial Poverty and Social Analysis Nov 2012

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Rural Energy Project: Updated Resettlement (Assistance) Plan Resettlement Plans Dec 2014
Rural Energy Pilot Project: Resettlement (Assistance) Plan Resettlement Plans Aug 2012
Rural Energy Pilot Project Initial Environmental Examination Feb 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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