EDC staff reconnect the electricity supply after a power outage in Phnom Penh's Chroy Changvar district in August. - Photo: EDC file
PHNOM PENH: Japanese ambassador to Cambodia Ueno Atsushi has expressed his hopes that a strong electricity transmission network in Phnom Penh will help the Kingdom to attract more foreign investment, as he co-signed approximately US$55 million in loans to expand the capital’s power grid.
He and Minister of Foreign Affairs and International Cooperation Sok Chenda Sophea co-signed the exchange of notes for loans to support phase two of the “Phnom Penh City Transmission and Distribution System Expansion Project”, in a ceremony Friday (Sept 6) at the foreign ministry.
“I hope that having a robust power transmission and distribution network in Phnom Penh will help to attract foreign investment and lead to further economic development in Cambodia,” said Ueno.
The project aims to contribute to the stable electricity supply in the capital by constructing a main transmission and distribution line and related substation facilities.
It was implemented in 2015, with the government of Japan just releasing the third tranche of loans to fund the project.
Ueno noted that the ratio of electricity generated from renewable energy sources is expected to increase significantly toward achieving carbon neutrality.
He added that that under these circumstances, the challenges for a stable electricity supply will be diverse, and include the enhancement of the grid’s flexibility through the installation of a battery system.
He explained that the Japanese government has supplied specialist staff to support the Ministry of Mining and Energy on a long-term basis and is providing support for the formulation of a Clean Energy Transition Roadmap.
“I hope the Cambodian government will continue to take measures to ensure a stable supply of electricity in a society that is moving toward carbon neutrality, by taking advantage of these technical cooperation schemes,” the ambassador said.
He noted that electricity is indispensable to people’s daily lives and is one of society’s most important types of infrastructure, and one on which economic development is based.
He believed that this project will make a significant contribution to the achievement of Sustainable Development Goal 7, which includes the goal of ensuring that all people have access to affordable, reliable sustainable and modern energy.
“At the same time, a reliable supply of electricity is essential for companies, in terms of ensuring the stability of their operations,” he added.
Thong Mengdavid, a lecturer at the Royal University of Phnom Penh’s Institute for International Studies, said the lack of modern energy infrastructure and the high cost of energy consumption have been major concerns for both the Cambodian government and foreign investors.
He believed that the Japanese loans would help correct these fears, by expanding the Kingdom’s electricity grid.
“Cambodia requires an extensive expansion of power transmission lines and the construction of new substations to improve electricity access. Additionally, the renovation of existing power lines will help reduce energy costs, supporting Phnom Penh's ongoing urbanisation.
“The Japan International Cooperation Agency(JICA) has played a pivotal role in funding energy infrastructure projects, which focus on reducing power losses, improving the efficiency of electricity distribution and increasing the overall capacity of the grid in Phnom Penh,” he told The Post on Sept 6.
Mengdavid explained that these efforts are part of Japan's broader "Smart City Initiative," which aims to assist Phnom Penh in adopting a smart city model.
He said this model promotes the use of technology to enhance urban management and integrates information and communication technology (ICT), making the city more attractive to foreign investors and high-tech businesses.
According to the Council for the Development of Cambodia (CDC), Japan’s investments accounted for just 0.05 per cent of the total investment in Cambodia from September 2023 to August 2024, while China ranked first, contributing about 60 per cent of the total. - The Phnom Penh Post/ANN
