Cambodia : Greater Mekong Subregion Transmission Project

Project Name

Greater Mekong Subregion Transmission Project

Project Number

34390-013

Country / Economy

• Cambodia

Project Status

Closed

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 2052-CAM: Greater Mekong Subregion Transmission Project

Source	Amount
Asian Development Fund	US$ 44.30 million

Loan: Greater Mekong Subregion Transmission Project

Source	Amount
World Bank	US$ 16.00 million
Nordic Development Fund	US$ 11.00 million

Strategic Agendas

• Environmentally sustainable growth
• Regional integration

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Private sector development

Sector / Subsector

• Energy / Electricity transmission and distribution

Gender

Some gender elements

Description

The main components of the project will be: (i) construction of a double circuit 220 kv transmission line approximately 110 km. long from the Vietnamese borders to Phnom Penh, associated substations and distribution works in Phnom Penh; (ii) construction of a power supply to affected households along the transmission line route; (iii) rehabilitation and expansion of the generating and distribution systems (22 kv and LV) in selected provincial towns; (iv) provide training to EDC staff and capacity building for the Electricity Authority of Cambodia (EAC); and (v) undertake studies of the feasibility of some small hydropower projects and prepare bidding documents.

Project Rationale and Linkage to Country/Regional Strategy

The Government?s Second Socioeconomic Development Plan 2001?2005 targets

(i) economic growth for poverty reduction, (ii) development of the private sector, and (iii) good governance. This is supported by the national poverty reduction strategy (2003?2005). The country strategy and program update identifies three priority areas for ADB support, namely rural economic development, human resources development, and private sector development. The proposed project is fully consistent with ADB?s and the Government?s strategy for the sector and with ADB?s subregional strategy.

Impact

(i) stimulate trade and economic growth in the subregion by promoting the provision of sustainable and reliable electricity at affordable prices to consumers in Cambodia; (ii) promote socioeconomic development and poverty reduction in Cambodia by enhancing accessibility to electricity on the part of the poor by continuing to reduce the high up-front connection costs.

Project Outcome

Description of Outcome

1. Promote the provision of sustainable and reliable electricity at affordable prices to consumers in Cambodia; and

2. Enhance accessibility for the poor by promoting a pro-poor policy environment in the sector

Progress Toward Outcome

1. The Project has achieved the expected outcome of providing sustainable and reliable electricity at affordable prices to consumers in the project towns. Takeo and Phnom Penh have used reliable and cheaper electricity sources from Viet Nam since March and May 2009, respectively. Since the connection of power from Viet Nam commenced, the supply of power in Phnom Penh almost meets the demand compared with major shortages of power before the connection of the lines. The average purchase price of $0.065 to $0.07 per kWh of electricity sourced from Viet Nam is cheaper than the average cost of about $0.17/KWh of power sourced from local diesel generators.

2. Construction of 22 kV distribution lines connecting 22 villages, where about 2,920 families live, was completed. EDC has issued an instruction that allows poor customers to pay connection fees in installments and also offered low-cost, 5-ampere capacity connections to poor customers.

Implementation Progress

Description of Project Outputs

1. Construction of the 230 kV transmission line from the Viet Nam border to the Phnom Pen substation was completed. The power line has been transmitting electrical power from Viet Nam to the Phnom Penh substation since 8 May 2009;

2. 22 kV distribution lines for bulk supply to affected communities living along the transmission route was completed;

3. An environment and resettlement unit was established;

4. Affected people received compensation according to the resettlement plan.

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

1. Construction of the 230 kV transmission line from the Viet Nam border to the Phnom Pen substation was completed. The power line has been transmitting electrical power from Viet Nam to the Phnom Penh substation since 8 May 2009;

2. 22 kV distribution lines for bulk supply to affected communities living along the transmission route was completed;

3. An environment and resettlement unit was established;

4. Affected people received compensation according to the resettlement plan.

Geographical Location

Safeguard Categories

Environment

B

Involuntary Resettlement

Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects

The Project has been assessed as falling into environment category B. The construction and operation of the proposed Project did not have any major adverse environmental impacts. A low-impact route has been selected for the transmission line, with an emphasis on avoiding settlements, minimizing line length, and providing easy access to the line for construction and maintenance.

The Project did not cause significant involuntary resettlement. It used paddy land for two substations and take over land occupied by productive trees. The impact was minimized by routing the transmission line away from built-up areas.

Involuntary Resettlement

A resettlement plan was prepared and implementation of all resettlement activities were completed.

Indigenous Peoples

The social analysis shows that all vulnerable groups are Khmer, but not indigenous people.

Stakeholder Communication, Participation, and Consultation

During Project Design

A stakeholder analysis was undertaken during the social assessment and has contributed to the resettlement planning process.

During Project Implementation

Stakeholder consultations were undertaken during project implementation.

Business Opportunities

Consulting Services

The project implementation consultants (PIC) and all other consultants will be recruited and supervised by EDC in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the engagement of domestic consultants. The PIC will (i) prepare preliminary designs and documents to pre-qualify the bidders and for bidding of the works, (ii) assist with evaluation, (iii) supervise construction, (iv) organize implementation of the Resettlement Plan, and (v) recruit the independent resettlement monitoring organization.

Procurement

All procurement financed by ADB will be undertaken in accordance with ADB's Guildeines for Procurement. The major works for the ADB financed portion of the project will be procured from pre-qualified contractos for (i) a turnkey contract for the transmission lines, and (ii) a turnkey contract for the substations at Takeo and West Phnom Penh. Procurement for project components financed by World Bank and NDF will be made under their procurement guidelines.

Contact

Responsible ADB Officer

Nida, Ouk

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Cambodia Resident Mission (CARM)

Executing Agencies

Electricite Du Cambodge

Timetable

Concept Clearance

08 Mar 2001

Fact Finding

05 Jun 2003 to 16 Jun 2003

MRM

21 Jul 2003

Approval

15 Dec 2003

Last Review Mission

-

PDS Creation Date

16 Oct 2009

Last PDS Update

14 Jul 2011

Funding

Loan 2052-CAM