fbpx 45303-001: Rural Energy Project (formerly Rural Energy Pilot Project) | Asian Development Bank

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

Sovereign (Public) Project | 45303-001 Status: Closed

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 Details

Project Officer
Tharakan, Pradeep J. Southeast Asia Department Request for information
  • Cambodia
  • Grant
  • Energy
Project Name Rural Energy Project (formerly Rural Energy Pilot Project)
Project Number 45303-001
Country Cambodia
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0336-CAM: Rural Energy Project (formerly Rural Energy Pilot Project)
Government of Australia US$ 6.11 million
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.
Project Outcome
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.
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)

Project implementation in progress.

Project implementation in progress.

Project implementation in progress.

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 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
Executing Agencies
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

Grant 0336-CAM

Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 4.81 Cumulative Disbursements
Cofinancing 6.11 15 Jan 2013 0.00 5.71 93%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - -

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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Title Document Type Document Date
Rural Energy Project: Completion Report Project/Program Completion Reports Sep 2019
Rural Energy Project: Audited Project Financial Statements (1 January-31 December 2017) Audited Project Financial Statements Jun 2018
Rural Energy Project: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jun 2017
Rural Energy Project: Audited Project Financial Statements (5 March 2014-31 December 2015) Audited Project Financial Statements Jul 2016
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 Agreements 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

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
Cambodia: Rural Energy Project Validations of Project Completion Reports May 2020

Related Publications

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Rural Energy Project Procurement Plans Apr 2014