The Asian Development Bank is working with Cambodia to provide inexpensive and reliable energy for people in rural areas. The project is building 620 kilometers of electricity lines in Svay Rieng province and is connecting 8,000 households in the area to the electricity grid. It will also provide 90,000 efficient cookstoves in rural areas of Kampong Cham province, benefiting at least 63,000 women entrepreneurs.
|Project Name||Rural Energy Project (formerly Rural Energy Pilot Project)|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
|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 8,000 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.|
|Description of Outcome||Expanded supplies of reliable grid-electricity and NKS.|
|Progress Toward Outcome||The overall physical progress of the project is on track. In the case of Component 1 (installation of medium-voltage [MV] and low voltage [LV] lines and household meters), the physical works of the installation of the LV and MV have been completed, and over 2000 households have been connected. The remainder of the 8000 households are expected to be connected by June 2018. EDC utilized the uncommitted amount of about $397,036 for procurement of additional transformers and concrete poles by repeat order from the engineering, procurement and construction contractor. EDC is expected to prepare the project completion report by June 2018.|
|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)||
Project implementation in progress.
Project implementation in progress.
Project implementation in progress.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project's environment categorizations is classified as B. Initial environmental examination report was prepared in accordance with ADB's Safeguard Policy Statement (2009). As the MV and LV lines have been established along existing rural roads in Svay Rieng Province, no significant environmental impacts occurred.|
|Involuntary Resettlement||The project's involuntary resettlement impact categorizations is classified as B. The social impact was to limited to compensation of trees and other assets in the existing right-of-way. There was no involuntary resettlement, land acquisition, or involuntary restriction of access to land and/or economic opportunities. Progress report is being finalized.|
|Indigenous Peoples||Indigenous peoples categorization is C. 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. Progress report is being finalized.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Tharakan, Pradeep J.|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Energy Division, SERD|
Electricite Du Cambodge
St 19 Watt Phnom, Daun Penh District
Phnom Penh, Cambodia
|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||28 Mar 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|15 Jan 2013||05 Dec 2013||05 Mar 2014||30 Jun 2015||30 Jun 2018||31 Aug 2018|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||10.92||Cumulative Contract Awards|
|ADB||0.00||15 Jan 2013||0.00||5.71||93%|
|Cofinancing||6.11||15 Jan 2013||0.00||5.71||93%|
|Status of Covenants|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|Maximizing Access to Energy for the Poor in Developing Asia||Brochures and Flyers||Dec 2013|
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