Cambodia Energy Limited

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Cambodian Energy Ltd. was created to build and operate 100-MW Leader-CIID coal-fired power in Sihanoukville Cambodia. Cambodian Energy Ltd. was initially owned by Malaysian Leader Universal Holdings Berhad (80%) and Cambodia International Investment Development Group or CIIDG (20%). But then it became 100% subsidiary of Malaysian Leader Universal Holdings Berhad. The project was created based on a previous larger one. In February, 2007, the Ministry of Industry, Mines and Energy of the Royal Government of Cambodia awarded a 200 MW project to Power Synergy Corporation Co. Ltd, a joint venture between Leader Universal Holdings Berhad and MKCSS Holdings Co Ltd. The project consisted of building and operating four 50MW coal-fired electricity generators, and a double-circuit 230 kV transmission line. In March, 2008, Power Synergy Corporation Co. Ltd Leader signed a 30-year PPA with EDC (Electricite du Cambodge) to sell the electricity to be project under the project. The same year the project company negotiated the implementation agreement with the Ministry of Industry, Mines and Energy, and the sovereign payment guarantee with the Ministry of Economy and Finance. In February 2009, Leader Universal announced that the 200-MW project had been split into two 100-MW projects: Leader-CIID coal-fired power plant and Sihanoukville Coal-Fired IPP Plant Project. The first one was allocated to Leader Universal and the second one to MKCSS Holdings. In June 2009, the sponsors announced that they would dissolve the Power Synergy Corporation. In 2009, Leader Universal and CIIDG created a new joint venture, Cambodian Energy Ltd., to build, own and operate the 100-MW Leader-CIID coal-fired power plant. However, CIIDG withdrew its participation in Cambodian Energy Ltd. in July 2010. The 100-MW Leader-CIID coal-fired power plant had an estimated cost of US$170 million, equivalent to $1,700/kW. In February, 2010 Cambodian Energy Ltd. raised a loan of $140 million for the project. The loan was provided by a consortium comprising OCBC Bank, Malayan Banking Berhad, AmBank and Bank of China. The tenor of the loan is 7 years from the date of the first draw-down with an optional extension for another two years at the discretion of the lenders. Leader did not provide details on the interest on the loan. The power plant was scheduled for operation from 2012. The plant was expected to provide the basis for the implementation of the subsequent, larger 700-MW coal-fired project. In 2012, the O&M contract was awarded to Shandong Licun Power Plant Technology, from China. The EPC Contract went to HYuadian Engineering. The project also included a 230kV transmisison line from Phnom Penh to Kampong Cham, operated by Leader Universal Holdings, parent firm of Cambodian Energy Limited, via its subsidiary: Cambodian Transmission Limited (CTL). Total cost was US$107 million, of which US$65 million was provided by Export-Import Bank of Malaysia Berhard under a 13 year islamic financing loan.