A Change of Guard

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Friday 29 May 2009

Cambodia Signs New Deal To Buy Electricity From Vietnam

HANOI -(Dow Jones)- Cambodia signed a new contract Tuesday to buy electricity from neighboring Vietnam, Vietnam's Ministry of Industry and Trade said Wednesday.

Under the contract signed between the Vietnam Electricity Group and the Electricite du Cambodge, Vietnam will sell electricity to Cambodia via a 220- kilovolt line from southern Vietnam to Phnom Penh, the ministry said.

The power line has been transmitting 400,000 kilowatt-hours to Phnom Penh daily since May 8, the ministry said, adding power transmission via the line will be raised to 1 billion kilowatt-hours a year in the near future.

Vietnam has been selling electricity to Cambodia via the same power line since 2002, but only to its border province of Takeo.

The new contract signed Tuesday comes after the line was extended to Cambodia's capital city earlier this year.

-By Vu Trong Khanh, Dow Jones Newswires; 844 35123042; trong-khanh.vu@ dowjones.com

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