PHNOM PENH, June 21 (Xinhua) -- The China National Heavy Machinery Corporation (CNHMC) has signed BOT agreements with the Cambodian government to build the Stung Tatay hydro-power plant in Koh Kong province, according to the Chinese Embassy here Saturday.
CNHMC will construct the project of 246 megawatts in five years at 540 million U.S. dollars, according to the agreements signed here Friday.
After the construction is completed, CNHMC can still operate the plant on the Tatay River for 37 years to generate electricity and sell it to the Cambodian government. When the BOT period terminates, the plant will be transferred to Cambodia.
The Cambodian government approved the project on June 13 in order to obtain more electricity, help maintain appropriate power price and promote economic growth and development of the country.
On the same day, the Cambodian government also gave green light for China's Michelle Corporation to build the Stung Russey Chrum Krom hydro-power plant of 338 megawatts in the same province at 495.7 million U.S. dollars.
Both projects will also harmonize with the people's living conditions there and the overall development of those areas, according to a government statement.
Cambodia has been in extreme shortage of power. Electricity even sells one U.S. dollar per kwh in some rural areas.
The government has been pursuing a strategy to develop hydro-power projects along the Mekong River to meet the desperate demand for electricity.