|ISDN Holdings this morning said it is collaborating with Tokyo-listed eREX Co. Ltd and Cambodian company Asia Energy Power Co. Ltd to build a hydroelectric power plant in Cambodia.
The 80 MW plant, located in Pursat Province, will also have large-scale water storage capacity.
ISDN is participating in this JV through its wholly-owned subsidiary, ISDN Energy.
The project has already received confirmation and guarantee from the Cambodian Government for the business rights for the construction of the power plants and for the sale of electricity at a fixed price to the Cambodia Electric Power Corporation.
The JV company is incorporated in Singapore and called SPHP Co Pte Ltd.
ISDN Energy, eREX and Asia Energy have ownership of 33%, 34% and 33% respectively.
ISDN will inject US$0.5 million as equity and another US$2.5 million as shareholder loan during the initial development phase of the project which represents the expected investment sum.
At the end of 35 years from the start of operations for the Project, SPHP will transfer operating rights of the Project to the Cambodia Electric Power Corporation.
ISDN also said it is on track to begin production for its first two mini-hydropower plants towards the end of 2019 and the third to start in financial year 2020, bringing the total capacity to 24.2 megawatts of power.
This is the latest in a string of ISDN’s renewable energy initiatives.
With its experience in Indonesia, the Group will be the technical project lead for the Cambodian project.
This project is critical as one of the Cambodian Government’s new initiatives to ease the strain on the country’s electricity grid.
On the back of rapid population growth and industry expansion, the Asia Development Bank has projected Cambodia’s peak electricity demand to more than double to 2,401 megawatts between 2015 and 2025.
The country’s electricity demand is expected to increase by 7.5 times from 2015 to 2040, according to the Economic Research Institute for ASEAN and East Asia’s (ERIA) report.
|“In our endeavour to further grow and diversify our greener energy segment, the Group has been looking for lucrative opportunities to penetrate further into Asia’s renewable energy sector.
"In line with our strategy, we are pleased to have the opportunity to build this hydroelectric power plant as one of the clean energy investors to bring clean, affordable, and reliable electricity to the Cambodian people.
"We seek to extend our expertise in building hydropower plants in Cambodia, helping to alleviate widespread blackouts in the country in the near future.”
-- Mr Teo Cher Koon (photo),
ISDN’s Managing Director and President