ADB lends Cambodia 8 million USD for power line

The Asian Development Bank (ADB) has announced it will grant a loan of 8 million USD to help Cambodia overcome major power shortage in its northwestern region.

Tomas A. Norton de Matos, a Senior Structured Finance Specialist with ADB said the project will give the region access to cheaper electricity and a much needed reliable supply. "We worked closely with ThaiExim Bank to enable the project, which also includes trade in Thai equipment and services, to proceed?, he said.

The project will be a boost for the regional economy, not just in tourism but also in agriculture, mining and manufacturing. It is the ADB's first private sector infrastructure project in the country.

ADB's 8-million USD preferential loan will go toward the cost of the estimated 32 million USD project. The balance of funding is being provided through equity, as well as loans from the Export-Import Bank of Thailand and local Cambodian banks.

Areas involved in the project include Siem Reap, Banteay Meanchey and Battambang that will import electricity from neighbouring Thailand.