Rural Electrification and Transmission Project

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The main development objectives of the Rural Electrification and Transmission Project are to improve power sector efficiency and reliability, while reducing electricity supply costs, improve standards of living and foster economic growth in rural areas, by expanding rural electricity supplies, and, strengthen electricity institutions, the regulatory framework, and the "enabling environment" for sector commercialization and privatization. The transmission line component comprises the construction of a double circuit 220kV line from the border with Vietnam to Phnom Penh, and two associated substations; reinforcement of the grid around Phnom Penh, which involves lines and modifications to three substations and 22kV extension; establishment of a National Control Center to optimize load dispatch operations, and increase system security; and, building the Electricite du Cambodge (EdC) capacity in project management, land acquisition, resettlement and environmental monitoring and mitigation. The rural electrification component, supports EdC's grid extension program, covering medium, and low voltage lines and electrification for rural households. The Project will support the symbiotic relationship of EdC and the rural electricity enterprises (REEs), and whenever feasible, will make use of private sector providers in the operation of rural distribution systems. EdC would identify existing REEs, and options for public-private partnership, including distribution licensing, billing and collection arrangements, management contracts, and leasing arrangements. The pilot Rural Electrification Fund (REF) component, aims at implementing an innovative mini, and off-grid electrification program, as a transparent institutional mechanism for promoting rural electrification, established by the Government with administrative, managerial, technical and financial autonomy to channel sub-grants and technical assistance (TA) to the private sector, and rural communities. The REF will assist private sector developers in providing new connections, electricity to households using solar home systems, and add as well mini-hydro, and micro hydro capacity.