China Eximbank provides $85.9 million preferential buyer’s credit for Phase 8 of Rural Grid Extension Project (Linked to Record ID#32216, #62326, #62331, #62333, #92545)

China Eximbank provides $85.9 million preferential buyer’s credit for Phase 8 of Rural Grid Extension Project On October 17, 2023, China Eximbank and the Government of Cambodia signed a $85,956,000 preferential buyer’s credit (PBC) agreement for Phase 8 of the Rural Grid Extension Project.

The borrower is expected to use the proceeds of the loan to finance 95% of the cost of a $90,480,000 commercial contract with China National Heavy Machinery Corporation (CHMC).

The purpose of the project is to build 3,085 kilometers of 22 kV and 35 kV medium-voltage lines and install 635 pole-mounted transformer switchgear in Takeo, Pursat, Kampong Cham, Tbong Khmum, Otdar Meanchey, Kampong Thom, Battambang, Koh Kong, Banteay Meanchey, Siem Reap, Pailin, Preah Vihear, Kampong Speu, Kampong Chhnang, Prey Veng, Stung Treng, Mondul Kiri, Ratanakiri, Kratie, Svay Rieng, Preah Sihanouk.

Upon completion, the project is expected to improve rural power conditions in Cambodia, increase power supply coverage and quality, reduce electricity prices in the areas involved in the project, narrow the gap between rural and urban power grid development levels, improve regional living standards, increase the number of jobs, and drive economic development in the region.

CHMC is the EPC contractor responsible for project implementation.

The project’s originally scheduled commencement and completion dates were January 1, 2023 and December 31, 2026, respectively.