Wednesday, May 29, 2013

Electricity co-operation crucial




7 Electric wires

     Electric wires are seen above a cross junction in Phnom Penh. Photo by AFP
 
Co-operation on the exchange of electricity will be very important in making the 10-country ASEAN bloc move forward to a single market by 2015, experts said, but a shortage of power supply in each country remains a challenge.

Speaking to reporters yesterday after the opening of the 29th meeting of the Heads of ASEAN Power Utilities and Authorities Council, Keo Rottanak, director general of Electricity of Cambodia (EDC), said the population and economic growth rates are rising in ASEAN, which is why more energy supply is needed.

“All ASEAN countries including Vietnam, Thailand, Laos and others, are facing a shortage in their power grids, but their issues are less than for us,” said Keo Rottanak. “A shortage of power supply is truly a challenge [for regional integration].”

While the general development gap is a challenge in forming one single economy which allows the free flow of goods, services and labour among all countries in ASEAN, Ith Praing, secretary of state at Cambodia’s Ministry of Industry, Mines and Energy, said Cambodian infrastructure is still at an early stage of development and is being constructed piece by piece.

“The participation by the private sector has been an indispensable element in addition to the regional and bilateral framework,” Ith Paing said.

Hiroshi Suzuki, CEO and chief economist at the Business Research Institute for Cambodia, said the member countries in the region, and donors, have made great efforts toward the physical connection of power systems, especially among the Great Mekong Sub-region countries.

He added the connection of transmission lines between Thailand, Vietnam, Laos and Cambodia have been constructed and are operating to some extent.

“The supply capacity and price could be much more efficiently managed by these efforts,” he said.

According to a report in 2011 conducted by the ASEAN Center for Energy, Cambodia’s electricity tariff is one of the most expensive in the Southeast Asian region. Tariff rates range from 9 cents to 25 cents per kilowatt hour for the EDC grid, and 40 cents to 80 cents per kilowatt hour for rural areas.

The report revealed that on average electricity prices for industrial consumers range from 11.71 cents to 14.63 cents, which is the highest among ASEAN economies.

In a meeting at the Cambodia Chamber of Commerce last week on the private sector development focusing on the rice sector, rice millers said high operational costs due to electricity prices are a major obstacle in driving higher production costs and negatively affecting their competitiveness in the market.

Sunday, May 26, 2013

Massive Power Outage Triggered by Falling Tree

By and - May 24, 2013

A massive power outage that left large areas of Phnom Penh without elec­­tricity and water and plunged Southern Vietnam into darkness on Wednesday was caused by a crane operator knocking a tree onto a high-voltage power line, Vietnam’s state-owned energy provider said Thursday.

The power cut, which left Phnom Penh without electricity for more than six hours, was described by Vi­et­namese media as the most extensive outage in the country’s history.

“A crane with the registration number 61P-3745 broke safety regulations, which led to widespread outages in the Southern region of Viet­nam,” the Southern Power Corporation, which is owned by Viet­nam Electricity Group, said in a statement.

The incident “caused traffic chaos and affected manufacturing operations and business in all prov­inces in the region,” the statement adds.

The state-owned newspaper, Thanh Nien, reported that the incident had cost the Southern Power Corporation an estimated $700,000 in lost revenue.

According to the statement, the man responsible for the incident was 56-year-old Tran Van Nhat, who works for a timber company and was moving a single 17-meter-long log when it fell onto the 500-kilovolt transmission line.

Police “do not exclude the possibility of prosecutions after investigating the behavior of individuals [in­volved],” due to the “huge consequences the accident had on society,” the statement says.
An official at Cambodia’s state-owned energy provider Electricite du Cambodge, who did not give his name because he is not authorized to speak to the media, said that no one had yet estimated how much the incident had cost the firm.

However, he said the outage had meant Cambodia’s national grid had lost 40 percent of its capacity during the hours without electricity. “It is like an ox cart that is pulled by two cows. If one of those cows stops working, the other one can’t pull the cart forward,” he said.

Read more: http://www.cambodiadaily.com/news/massive-power-outage-triggered-by-falling-tree-26557/

Friday, May 24, 2013

Vietnam Power Failure Hits Phnom Penh

By and - May 23, 2013

A massive power outage Wednesday in Southern Vietnam brought rolling blackouts that lasted for hours to Ho Chi Minh City, the entire southeastern region of Vietnam and large sections of Phnom Penh.

Vietnam’s state-owned South­ern Power Corporation said Wednesday that the problem occurred around 2 p.m. following the breakdown of a 500-kilovolt transmission line that also supplies Cambodia with much-needed electricity.

An official at Electricite du Cambodge (EdC), Cambodia’s state-owned energy provider, who did not give his name because he is not authorized to speak to the media, said that the blackouts in Phnom Penh were due to the outages in Vietnam.

“We have only about 30 percent of our normal supply of electricity to distribute to important areas of the city, but we are trying to fix the problem” the official said Wednesday afternoon, adding that Vietnam provides Cambodia with about 40 percent of its national electricity supply.

At about 2 p.m., the power went out all over Phnom Penh causing the city’s central water pumping station to stop working, leaving many in the city without power and water.

By 7 p.m., the entire length of Phnom Penh’s popular riverfront area lay in darkness, as tourists crowded restaurants drinking cans of beer by candlelight, while wait staff hung around outside establishments that were unable to cook food or use running water. The power appeared to return to central Phnom Penh around 8 p.m.

Keo Sovannarith, deputy director of the Phnom Penh Water Supply Authority, confirmed the city’s water supply had been hit by the outage.......

Read more http://www.cambodiadaily.com/news/vietnam-power-failure-hits-phnom-penh-26121/

Wednesday, May 22, 2013

Protestors Block National Road Over Energy Prices

Posted on May 20, 2013

About 300 people on Saturday blocked off a stretch of National Road 5 in Banteay Meanchey province protesting what they call is an unfair increase in electricity prices. …

Protesters believe that the private electricity supplier, Sok Vitith, altered the Commune’s electricity converter without telling the consumers so that it now produces 160 kilovolt-amps (KVA) instead of the usual 100 KVA.

“I reject the claim I did it for my own benefit. I had to do it because there was not enough electricity to supply the commune, so in April, I changed the electricity cabinet from 100 KVA to 160 KVA,” he [Sok Vitith] said.

Blaming the villager’s soaring usage on the increased use of appliances during recent hot weather, Mr. Vitith said that he had accepted villagers complaints and had yesterday reinstalled the 100 KVA converter. …

Khuon Narim, P.19,

Original text...

Tuesday, May 21, 2013

Thai generator looking at Kingdom

 
Thailand-based Ratchaburi Electricity Generating Holding Pcl (RATCH) has “seriously assessed” investment possibility in neighbouring countries including Cambodia, a company statement said last Thursday.

It said it had geared up for business expansion in domestic and international markets in the potential existing investment bases Laos and Australia, but is also considering Cambodia, Myanmar and the Philippines.

“For capacity expansion, the company has set aside Bt10 billion ($336.8 million) budget for accommodating development of committed projects and new investment,” Chief Executive Officer Noppol Milinthanggoon said in the statement.

Earlier last week, The Nation reported that the Electricity Generating Authority of Thailand (EGAT) plans to build a coal-powered plant in Cambodia to produce 4,000 megawatts of electricity.

Meng Saktheara, director general of industry at the Ministry of Industry, Mines and Energy, told the Post last week that while he is not aware of EGAT’s plans, he welcomes them. “It would contribute to the diversification of energy sources, which is very important for Cambodia’s development and would attract more industry.”

RATCH could not be reached for comments and did not reply to an email sent yesterday.

The company closed at 56.75 baht on the Stock Exchange of Thailand on Friday, down 0.44 per cent on the day.

Original text here

Monday, May 20, 2013

Egat wants coal plants in Cambodia, Myanmar, Krabi

Watcharapong Thongrung
The Nation
May 13, 2013 1:00 am

Energy Minister Pongsak Ruktapongpisal has given the Electricity Generating Authority of Thailand (Egat) the green light to proceed with a plan to build coal-powered plants in Myanmar and Cambodia - providing Thailand with 10,000 megawatts of electricity. Egat has also been instructed to negotiate the purchase of nuclear power from China in order to bring down the cost of electricity.

At present, households pay independent power producers (IPP) who rely on imported liquefied natural gas (LNG) to operate.

According to Pongsak, Egat is in the middle of negotiations with the Myanmar government to invest in coal-powered plants, which would provide Thailand with between 4,000MW to 6,000MW - produced by a plant in Dawei - and another 2,000MW via the natural-gas pipeline. The issue will be raised with the Myanmar vice-president when he visits Thailand from May 26-28 to pave the way for the signing of a memorandum of understanding (MoU) on the deal.

In addition, the Energy Ministry has also been discussing the possibility of investing in a coal-powered plant in Cambodia to produce 4,000MW of electricity. Thailand hopes that buying power from Cambodia will keep the domestic cost of electricity from exceeding Bt6 per unit. Egat also plans to go ahead with its coal-powered project in Krabi once it has reached an "understanding" with residents and businesses protesting against the deal.

The minister said that in Thailand power plants were far too dependent on liquefied natural gas (LNG). Since supply from the Gulf of Thailand is dwindling, it was necessary for the foreseen future to rely on cheaper, imported LNG from the region. Furthermore, the next IPP bidding for 5,400MW of electricity would likely increase the cost of electricity for the general public. Since the bidding cannot be cancelled, the energy ministry has to secure other lower-cost sources of electricity, said the minister.

In addition to investing in coal-operated power plants from neighbouring countries, Egat is also looking at investing in hydro-electric power projects within the region.

The energy ministry is also trying to secure a power purchase deal with a Chinese nuclear power plant. The concept of nuclear power has yet to be widely accepted in Thailand.

Original text here

Saturday, May 18, 2013

Work Begins on Controversial Cambodian Dam

Robert ​CarmichaelVOA
Residents of Srekor village plane lengths of wood at their open-air workshop on the banks of the Se San River, Cambodia. (R. Carmichael/VOA)
Residents of Srekor village plane lengths of wood at their open-air workshop on the banks of the Se San River, Cambodia. (R. Carmichael/VOA)

PHNOM PENH - As work begins on Cambodia’s biggest dam, those advocating against its construction have warned that the region’s rush for hydropower will have a disastrous effect on millions of people who rely on the Mekong River to survive.

Last month, workers began preparing an area in northeastern Cambodia for a huge hydropower project, the 400-megawatt Lower Se San 2 Dam.

The $800 million dam on the Se San River, a major tributary of the Mekong, will take the Cambodian, Chinese and Vietnamese companies behind it five years to build.

Opponents say the dam’s real cost will be paid by the millions of people who rely on fish for the bulk of their protein intake.

Cambodians eat more freshwater fish than any other nationality, says Eric Baran, the senior research scientist with WorldFish, an independent group that studies food security. “So people have become very reliant on this source of animal protein," he explained. "And, fish is also by far the first source of animal protein.”

Thailand and Vietnam have a flourishing livestock sector - with advanced production of chickens and pigs. But, in Cambodia, fish accounts for 80 percent of the population’s animal protein intake.

Scientists estimated the Lower Se San 2 Dam could reduce the total fish yield of the Mekong Basin by 9.3 percent.

“So it’s 9.3 percent of 2.1 million tons - which is a gigantic amount," said Baran. "In other words, this expected loss represents around 200,000 tons per year, which is much more than the whole marine sector of Australia. And, nine times more than the annual inland fish catch in Germany or the U.S.”

That estimated drop is presented in a study that Baran co-authored, published last year in The Proceedings of the National Academy of Sciences.

Researchers found that of the dozens of tributary dams planned for Laos, Vietnam and Cambodia, the Lower Se San 2 Dam was by far the most destructive for fisheries.

That is because the Se San River is one-third of a network of rivers in northeastern Cambodia that constitute three out of four so-called “highways” that migratory fish use to access their breeding sites.

The Lower Se San 2 Dam will be built a few miles downstream of the confluence of two of those three rivers: the Se San River and the Sre Pok River. Scientists said the dam’s eight-kilometer wall will block migratory fish - which make up 40 percent of all fish in the system - from accessing their breeding grounds.

The study also found that the Lower Se San 2 Dam would reduce by six to eight percent the flow of nutrient-rich sediment, which is vital to fertilizing the small rice fields of hundreds of thousands of subsistence-level people.

And, it warns that a series of mainstream dams planned for Laos and Cambodia would have even worse effects.

“If the 11 mainstream dams are built, it’s expected that up to 75 percent of the sediments will be blocked by dams,” Baran said.

Countries that build dams on the mainstream of the Mekong River must first carry out detailed impact studies to measure how they could affect their neighbors.

But dams built on tributaries - such as the Lower Se San 2 Dam - require no such study.

Ame Trandem is the Southeast Asia Program Director for International Rivers, an independent environmental group.  She said the environmental impact assessment for the Lower Se San 2 Dam is “wholly inadequate.”

“Because it’s a tributary project it has never undergone that same level of consultation. And, so the information that’s been produced by experts hasn’t reached the government in the same kind of channels. I do think, if more information was reaching the government, it would reconsider,” Trandem stated.

VOA tried to speak with Cambodian authorities about the dam’s impact, but was told that the man responsible for hydropower dams - the Minister of Industry, Mines & Energy Suy Sem - was too busy to schedule an interview until after Cambodia’s general election in July. Other ministry staff would not speak and a list of questions sent to the minister was not answered.

Meanwhile, work on the Lower Se San 2 Dam has started and thousands of people who live in the areas that will be submerged by the dam’s vast 300-square-kilometer reservoir have been told they will have to move.


Pa Tou, a 37-year-old rice farmer and resident of Srekor village, says the proposed resettlement site will leave all of the villagers far worse off, Cambodia. (R. Carmichael/VOA)Pa Tou, a 37-year-old rice farmer and resident of Srekor village, says the proposed resettlement site will leave all of the villagers far worse off, Cambodia. (R. Carmichael/VOA)
 
One of them is 37-year-old Pa Tou. He said none of the 400 ethnic minority families in Srekor village on the banks of the Se San River wants to leave.

Pa Tou said the dam will deprive them of everything - their rice fields, orchards and homes. Currently, they can grow enough rice in a year to feed themselves for the following year and they are able to raise some livestock for food and some for sale.

Pa Tou, who has three daughters, said that will not be possible at the relocation site, which is miles from the river.  He said the land there is poor for farming - most of it is rocky or covered with trees - and there are no health clinics and no schools. He fears they will all be left much worse off.
Original text here

Friday, May 17, 2013

Cambodia: Can A Few Monks Save the Cardamom Forest?

Dammed if you don’t
<p>Luke Duggleby</p>
Luke Duggleby
Following uncontrolled forest destruction in the Central Cardamom Protected Forest, an eco-warrior monk movement has begun, whereby monks and villagers bless trees to deter would-be loggers.

Can A Few Monks Save the Cardamom Forest?

Cambodia, strapped for cash and desperate for energy, has turned to clearing its prehistoric forests for hydro-electricity dams. And China is only too eager to help.

Guided by Buddhist monks, the 200-metre-long orange cloth snakes its way through the Cambodian village of Ta Tai Leu and into the forest until it reaches a clearing. There, emerging from the forest with community members, students and farmers in tow, the religious procession is met by a scene of devastation: logging has left only the largest trees in this old-growth rainforest, their enormous buttresses too much for the loggers’ machinery, their canopies towering over the smouldering wreckage. The monks pause momentarily, then continue towards the remaining goliaths, to bestow their blessing.
It’s a tree ordination, in which spiritualism meets activism, with the hope of protecting the trees left standing through either divine intervention or media attention. The Khmers take spirits seriously. And it seems little else stands guard over this place in the country’s southwest, which is nonetheless called the Central Cardamom Protected Forest.
Cambodia’s forests were once described as the country’s “most developmentally important resource”, but these rich forests had been largely degraded, the valuable timber sold off by the political elite for quick, private profits from unrestricted logging.
Deep in the Cardamom, the Areng valley is covered with such ancient trees, along with natural wild grasses, and small communities of Khmer people who still speak an ancient form of Khmer language. This vast forest has been little explored, largely protected from development because of its remoteness and the retreating Khmer Rouge who left thousands of landmines in their wake; people were too scared to enter, or simply didn't have access to the region. The Areng is also one of the last known natural habitats in which the Siamese crocodile is found, though it had been believed extinct in the wild until it was rediscovered here in recent years.
Cambodia’s forests were once described by the World Bank as the country’s “most developmentally important resource”, but according to the international group Global Witness, by 2009 these rich forests had been largely degraded by unrestricted logging, the valuable timber sold off by the political elite for quick, private profits.
According to the group’s report Country For Sale, “Patterns of corruption and patronage found in the forest sector, and documented by Global Witness over 13 years, are now being duplicated”, in other Cambodian industries.
In the valley adjacent to that in which the tree “ordination” was held, a dam project known as Stung Cheay Areng is in the planning phase. It’s part of a wider hydroelectric program in the valley and across Cambodia, in which Chinese companies are driving development. China has some US$4.5 billion in Cambodian energy contracts and investments, according to The Heritage Foundation’s investment tracker.
<p>Luke Duggleby</p>
Luke Duggleby
 
This village, along with eight others in the Areng Valley, are at risk of disappearing because of the 108-megawatt Cheay Areng Dam.
 It’s true that Cambodia is a country in serious need of electrification. During the 1970s, the country’s civil war all but wiped out its electricity infrastructure. When the Khmer Rouge took control in 1975, it destroyed virtually all electricity-related facilities as part of its efforts to reduce the country to a completely non-threatening agrarian society.
When Cambodia eased into a state of peace in the late 1990s, the government tried to rehabilitate the electricity system, but internal fighting, lack of funds, and many other issues affecting a country that had been reduced to rubble just a few decades before, made this a difficult task.
Even today there is no national grid, and the vast majority of the population — and less than 10 per cent of rural households — has no regular access to electricity. The demand is there from domestic, business and industrial sectors, and is increasing every year, yet the government has insufficient capacity to meet such needs. Even Phnom Penh experiences regular blackouts. Foreign investment is seen as vital to developing this much-needed infrastructure.
“Cambodia is seriously short of electricity and recent power cuts show that the available supplies cannot meet demand. And the government has prioritised developing hydropower as one way to remedy this problem,” says British researcher Mark Grimsditch.
“As one of the world’s least developed countries it has limited resources and technical capacity to [manage such projects]. China has proved to be a willing partner in supporting this burgeoning industry,” Grimsditch wrote in a report about China’s hydropower investments in the Mekong region.
“Cambodia is seriously short of electricity and recent power cuts show that the available supplies cannot meet demand. And the government has prioritised developing hydropower as one way to remedy this problem.”
“Chinese hydropower companies are eager to invest abroad, and have strong backing from the Chinese government,” according to Grimsditch’s 2012 report, produced for the World Resources Institute.
“Until recently, Cambodia was a relatively clean slate in terms of hydropower, and so presented an excellent opportunity … for Chinese companies looking to develop overseas projects. This has fit well with Cambodia’s desire to develop the sector, and no doubt the strong political relationship between the two countries has facilitated the rapid expansion of the sector.”
Though China was once a supporter of the Khmer Rouge, the past 15 years have seen a strengthening of government relations between the two countries. China has poured money into Cambodia through aid and investment, waived national debts, and secured access to key sea ports. In 2006, Cambodia’s Prime Minister Hun Sen described China as Cambodia’s “most trustworthy friend”.
And the Chinese government’s focus on large-scale development projects, such as hydropower dams, is very inviting to a Cambodian government in a rush. It’s difficult to obtain precise funding figures on international deals in Cambodia. Many approved projects are never realised, for various reasons — for example, the mere approval of big projects is seen to boost the prestige of Cambodia for potential investors — but in the past 10 years China’s actual investment has increased substantially, especially in the energy sector.
<p>Luke Duggleby</p>
Luke Duggleby
China, with its commitment to developing renewable-energy projects, is now the world’s largest developer of hydro-electricity-generating dams, having several years ago surpassed The World Bank in this role. With its domestic market saturated (so to speak), overseas projects keep China’s big state-owned companies in play, and developing their damming technology, Grimsditch told The Global Mail. Worldwide, China’s wealthy state enterprises and banks have around 300 dam projects either in the planning stage or currently being constructed, in at least 70 countries. In Cambodia, 11 such projects are at varying stages of development, including the dam that threatens the Areng valley.
THE ARENG VALLEY DAM project’s feasibility was being assessed by a team of engineers sent by China Guodian in November 2012. After three months of living in the valley, the engineers returned to China, but as yet their recommendations are unknown to the public. The same applies to the status of the deal, though some reports have speculated it could go ahead within months.
Within and around the boundaries of the Cardamom Forest, three other dam projects have already started construction or been completed. The rivers being dammed are: The Atay river (hence Atay Dam); The Ta Tai river (Ta Tai Dam); and the Roussey Chrum River.
The sacrifices of the people are compounded by the fact that the dam makes almost no economic sense.
But it is the planned damming of the Areng river that has galvanised environmentalists, students, rice farmers and now monks. The advocacy campaign highlights the relocation of indigenous people, and the impact that flooding some 20,000 hectares would have on wild fish and other rare and threatened species.
The Areng valley is remarkable for several reasons, not least its Siamese crocodiles. This newly rediscovered reptile is still classified as Critically Endangered — the highest risk category assigned by the International Union for Conservation of Nature Red List for wild species.
Fauna and Flora International, a British non-governmental organisation (NGO) involved in conservation, and which has been working to protect the last remote populations of the crocodiles for several years, estimates that fewer than 250 are left in the wild. Habitat destruction and hunting have eradicated the creature from 99 per cent of its historical range, which once covered much of Southeast Asia.
But even that is now at risk. If the Chinese-funded Stung Cheay Areng dam project goes ahead, this vital breeding ground could be submerged forever. Other species would also suffer catastrophic consequences: gibbons, black bears, Asian elephants and a host of other mammals thrive in this area of national park.
The Central Cardamom Protected Forest (CCPF) complex covers 4,013 square kilometres. The largest unbroken tract of woodland in Southeast Asia, and by far the most pristine, it is made up of a series of adjoining national parks, each dedicated at different times, with the aim of preserving the whole area.
<p>Luke Duggleby</p>
Luke Duggleby
In a village in the Areng Valley a family of Siamese crocodiles have been kept for protection, after the nest was found in the wild.
The Stung Cheay Areng dam is by far the most controversial yet proposed in Cambodia. It would not only submerge one of the most bio-diverse valleys in the country, but some 1,000 people who have lived in the area for centuries would be forced to relocate. Their six villages run in a line along the valley floor, where these people have for generations coexisted in a sustainable balance with the surrounding environment.
Cambodia’s ever more confident government authorities have evicted tens of thousands of people from their lands in the past decade to make way for development projects. In return for meagre compensation, they are frequently forced to leave their extensive ancestral lands which have long afforded them a subsistence living, and relocate to two- to three-hectare plots, which are often in the forest, on an elephant corridor where their activities are likely to conflict with those of the elephants, and on steep land with no area for rice plantations. In short, they are forced to abandon a sustainable existence for likely poverty, according the array of campaigners against the project.
One old lady in a village in the Areng valley, who didn’t want to be named, told The Global Mail, “I heard from other villagers that we will be leaving and that’s what everyone thinks will happen. We will only have the option of selling our buffalo and will be forced to leave our trees and our land behind.”
The sacrifices of the people are compounded by the fact that the dam makes almost no economic sense. According to a report issued by International Rivers, an NGO which has fought since 1985 to protect rivers around the world from destructive dam projects, the first Chinese company involved in the dam was China Southern Power Grid, which signed in 2006, but later withdrew from, a Memorandum of Understanding to explore the prospects for a dam there. In November 2010, China Guodian Corporation revived the spectre of flooding the Areng Valley, when it signed a new Memorandum of Understanding with the Cambodian Government.
The Stung Cheay Areng dam is by far the most controversial yet proposed in Cambodia. It would not only submerge one of the most bio-diverse valleys in the country, but some 1,000 indigenous people who have lived in the area for centuries would be forced to relocate.
The withdrawal of China Southern Power Grid was not surprising, considering that this dam, which will cost hundreds of millions of dollars, is expected to produce only 108 megawatts of power at best, according to the calculations of various NGOs; and that it will have to flood over 20,000-hectares of land to make a reservoir large enough to produce even that quantity of electricity. Over half of this reservoir will be located in the CCPF and will totally submerge the Areng Valley, making it the largest single encroachment to date into the protected Cardamom Forest.
According to Ame Trandem, Southeast Asia program director of International Rivers, “The Stung Cheay Areng dam’s environmental and social costs are likely to outweigh the project’s US$327 million price tag. While it’s a large investment, the Chinese often benefit from the payment of warranties granted to them by the Cambodian government.” Such warranties may include promises to buy back the power at an agreed price, and even provide financial bailouts in certain circumstances. Trandem’s report adds that, “Cambodia’s poor governance also serves as an advantage for Chinese companies, as the true environmental and social costs associated with these projects falls on the hands of the Cambodian government to remedy.”
China Guodian Corporation, with profits of almost a billion US dollars in 2011, is China’s second-largest power company. As with any Chinese company of that size, it is administered by the State-owned Assets Supervision and Administration Commission of the State Council, (SASAC), on behalf of the State Council of the People’s Republic of China.
Not frightened of controversy, China Guodian also announced in November 2010 that it would undertake a feasibility study into a much larger dam project at the town of Sambor in Kratie Province, in Northeast Cambodia. This dam would totally stem the flow of the Mekong River itself. The consequences of damming such a major river would be catastrophic, in terms of fish migration and downstream fish stocks alone.
<p>Luke Duggleby</p>
Luke Duggleby
Cambodian Buddhist monks and local people bless large trees by wrapping orange cloth around them and praying.
“This project was proposed as part of a US$6.4 billion deal for 16 infrastructure projects that was inked when Wu Bangguo, chairman of the standing committee of China’s National People’s Congress travelled to Cambodia in November 2010. At that time, Wu was reported as saying that Chinese financial institutions would likely provide financial support,” says Ame Trandem.
ALEJANDRO GONZALEZ-DAVIDSON couldn’t believe what he was seeing. The trees just went on and on. The forest seemed never to end. Every now and again he’d stop his motorbike, ask a villager where the road led, and continue. It was his first trip into the CCPF and his first visit to the Areng Valley. It was love at first sight.
“You have mountains surrounding you on both sides. You have no telephone coverage and no electricity. Since the first time I went there I felt like I was stepping back in time … Khmer is spoken as it was hundreds of years ago and you hear people speaking this ancient form of Khmer everywhere. It’s not only the magical beauty of the valley itself, nature wise, it’s the people as well,” Gonzalez-Davidson tells The Global Mail.
Born in Spain to a Spanish father and a British mother, Gonzalez-Davidson arrived in Cambodia on holiday in 2002, and never left. Learning the Khmer language to a fluency that very few foreigners ever achieve, he has made almost 30 trips to the Areng Valley and surrounding forests, and formed an empathetic relationship with the local people. Getting to the valley is a feat in itself, with the only access after the town of Tmol Bang being a mud track not wide enough for a car, and a surface so bad that it can take an untrained outsider three hours to cover 16km on a motorbike.
But the road didn’t deter him and any time he was able to take off from his job as an English teacher at a Phnom Penh university, he would visit the villages and spend days, often weeks, living there, talking to the locals and trying to understand the area. He admits that some of the people in the valley are now among his best friends, so he has an interest in their wellbeing.
“While it’s a large investment, the Chinese often benefit from the payment of warranties granted to them by the Cambodian government.” Such warranties may include promises to buy back the power at an agreed price, and even provide financial bailouts in certain circumstances.
When rumours of the dam — plans for which were presumed to have been shelved when China Southern Power Grid withdrew from the project — began to resurface in 2010, Gonzalez-Davidson tried to make sense of the prospect that the valley could be lost forever. “In any other country in the world this dam would simply not go ahead; the valley would be declared a world-heritage site. Why destroy an area that size for just 100 megawatts of power? Spain is doing solar panels, taking up two to three hectares of land and you end up with 50 megawatts of power, and this could flood up to 20,000 hectares of protected forest! It doesn’t make sense.”
One thing Gonzalez-Davidson has learned during his time in rural Cambodia is the power and strength of Buddhism and the respect accorded to monks of the country’s dominant religion. In a system built on corruption at every level — from the police force to politicians — Buddhist monks are trusted by the local people.
It was this trust that he believed could be built on to create a Buddhist movement led by monks, which could help save the valley and surrounding forests.
In early 2012, Cambodia’s most famous environmental activist Chut Wutty was murdered. For years Wutty had fought to expose the illegal operations — such as animal poaching and the logging of rosewood and other rare timbers — taking place in the Cardamom. He regularly took journalists in to observe and report on such activities. It was on one trip, to expose the illegal logging of rosewood, that he was shot dead by a military police officer protecting the operation.
Wutty strongly believed in the power of the monks to rally and inspire people, and often worked in collaboration with them. After his death, Gonzalez-Davidson contacted a close associate of Wutty to ask if he knew any monks who would be interested in leading a tree-blessing movement into the Areng Valley.
At 42 years of age, monk Brahm Dhammasat has seen a lot of change in the Cardamom. His home is a village called Aural, a two-day walk north of Areng, in a valley beside Cambodia’s highest mountain, Phnom Aural. His valley is much easier to access than the Areng Valley, and despite being part of a wildlife sanctuary has also been devastated — in its case by logging and sugar-cane plantations.
<p>Luke Duggleby</p>
Luke Duggleby
Chinese engineers in the Areng Valley — there to assess the feasibility of the 108-megawatt Cheay Areng Dam.
“Ever since I was a child I have seen how the world has been changing around me and the destruction of the environment has increased more and more. I want that to change and see the world become more sustainable, where people are dependant on nature and nature is dependant on people. If that doesn’t happen the cycle of life will be broken and there will be no more species left on our planet,” Dhammasat says.
After hours of discussion on the telephone, Gonzalez-Davidson managed to persuade Dhammasat to come to the village of Ta Tai Leu, outside the valley but inside the CCPF, to lead the first tree ordination in this part of the Cardamom. This was a test run before the group ventured into the Areng valley itself — an area in which officials are much more sensitive to activism.
Monk-led environmental activism has been very successful in another forest, in Northwest Cambodia. There, in 2002, a monk called Bun Saluth prevented the destruction of his local forest by teaching people the importance of the natural resources their livelihoods depended on. The result was the legal protection of 18,261 hectares of evergreen forest now called the Monks Community Forest. For this achievement, the monk was honoured with the United Nations Development Programme’s Equator Prize, which recognises local initiatives to advance sustainable development solutions.
Susan M. Darlington, Professor of Anthropology and Asian studies at Hampshire College in America (and who wrote The Ordination of A Tree, about the Thai Buddhist environmental movement and its activist monks), explains, “If the monks and organisers work closely with the community involved, including them in the planning and implementation of the blessing and concurrent projects for protecting the surrounding forest, the rite would help cement a commitment to conservation. People need to feel they own the rite and the project, and understand how it benefits them in the long run.
“In Thailand, the robes on trees are beginning to be more effective because the whole country now knows about the rite; the symbolism of a tree wrapped in a monk’s robes has slowly entered the Thai conscience enough that hopefully loggers hesitate when they know a forest has been consecrated and is taken care of by local people,” she says.
Gonzalez-Davidson, who is registering an NGO called Mother Nature, to help continue the movement he has helped to initiate in Cambodia, remains realistic. He knows that the real fight must come from the local people themselves and hopes that the monks can be the force to inspire such change.

Original text

At least $100 mln a year needed for rural electrification

Published: 02-Aug-12 04:46PM 
 
Give our kids a better deal

 PHNOM PENH (Cambodia Herald) - Cambodia needs to invest at least $100 million a year to electrify rural areas, the Economic Research Institute for ASEAN and East Asia says.

The institute quoted Toch Sovanna, director of the Department of Energy Technics at the Ministry of Industry, Mines and Energy, as saying that Cambodia "is needing $1 billion over the years."

To develop renewable energy projects for rural electricification to reduce Cambodia's dependence on diesel consumption, that translates to about $100 million a year, he told a two-day regional energy efficiency conference.

Jiraporn Sirikum, chief of the Generation System Development Planning Department at the Electricity Generating Authority of Thailand, said Thai dependence on natural gas would fall from 67 percent in 2011 to about 58 percent in 2030. Energy imports are expected to range from 15 percent to 25 percent.
 
Original link: http://thecambodiaherald.com/cambodia/detail/1?page=13&token=ZDY4YzY5Y2Q4MThjZjExOTAzNDFlMzEwNDM3NmZh 

Thursday, May 16, 2013

Ratanakkiri Hydropower Dams Deemed Economically Viable


Two massive hydropower dams planned for the Mekong’s tributaries in Ratanakkiri province have been deemed economically viable by two feasibility studies conducted by a pair of giant Chinese conglomerates, a provincial industry, mines and energy official said Wednesday.



The Srepok 3 dam, located in Lumphat district, will generate more than 100 MW, while the Lower Sesan 3 dam, located in both Veun Sai and Andong Meas districts, will have a capacity of about 370 MW, said Hem Vanthorn, provincial director of the department of industry, mines and energy.

“The feasibility studies for the two dams have recently been finished which means that the proposed power plants are worthy in terms of economic value and job opportunities,” Mr. Vanthorn said.

A geographic survey and an environmental impact assessment (EIA) are now “under progress,” Mr. Vanthorn said, adding that both steps would need to be completed before the government approved the dams.

 Read more: http://www.cambodiadaily.com/news/ratanakkiri-hydropower-dams-deemed-economically-viable-23116/

Wednesday, May 15, 2013

Chinese Hydrodam Remains a Concern, Mystery to Locals: Cambodia

Say MonyVOA Khmer
KOH KONG - Villagers in the coastal province of Koh Kong say they are being kept in the dark on a hydroelectric dam planned to be built by a Chinese company in the remote Areng River valley.

Villagers here say they are worried that if the dam is indeed built, it will cause major harm to their livelihoods.

Cambodia has turned to the Chinese for a number of hydropower dams across the country. Supporters say they are needed to power the country’s growth and development, but opponents say they are not worth the environmental costs.

Along the Areng River, in Thmor Bang district, villagers say they are worried.

“So where am I going to move to?” asked Chhorng Dorn, a 71-year-old farmer who lives near the planned site of the dam. “What about my plantations, like coconut trees and other things I’ve been trying to plant so far? I’m already at this age, so I’m very concerned.”

Impact studies say the 108-megawatt dam, if built, would force about 1,500 villagers from their homes. Its reservoir would flood about 10,00 hectares of forested land, half of it within a protected forest of the Cardamom Mountains—a rich reserve of biodiversity.

Villagers here farm and forage in the forest. They also fish the river. A dam would harm the downstream habitats for wild fish that are essential for people living here, according to the environmental advocacy group International Rivers. The reservoir would threaten some 30 species, including the rare Siamese crocodile and dragonfish, the group says.

Nhem Sokhun, a school principal in Thmor Bang, said villagers have not been given much information about the dam.

“If the people know that information only when the dam construction has begun, then we will lose trust,” he said. “We would like to be informed in advance of compensation, either by the government or the Chinese company.”

He is not against the dam if its benefits are fairly distributed, he said.

“I believe that the benefit from this hydroelectric company is huge and the people can find some jobs, but I wonder whether the benefits can appropriately go to the people or not,” he said.

Plans for the hydrodam have been in the works since 2007, but the first Chinese company tasked with the $300-million project pulled out, deeming it infeasible. The China Guodian Corporation has since taken over the project. Officials there could not be reached for comment.

Critics want the project canceled, due to its negative environmental impacts, as well as the potential for illegal logging of luxury timber that could occur under the guise of construction. Local authorities say no such logging is taking place.

In Kongchit, the provincial coordinator for the rights group Licadho, said the dam is not necessary, at least for now.

“In this province, there are several ongoing dam constructions,” he said. “These hydroelectric dams can produce sufficient electricity for the whole country, and even for sale abroad.”

Locally, little is known about the progress of this particular project. District and provincial officials said they were not aware of detailed construction plans—but they confirmed the government has approved the project.

Kim Che, chief of Prolay commune, one of two communes that would be inundated by the dam’s reservoir, said he doubts it will ever be built.

“From 2007 until now, I have heard only of studies being conducted for the dam project, but I’ve seen nothing come up,” he said. “So I don’t think the dam is to be built.” He said his fellow villagers shouldn’t worry, either.

“If their homes and farmland are to be flooded,” he said, “mine will be too.”

Tuesday, May 14, 2013

Cambodia: Going black before going green

Monday, May 13, 2013

Cambodia launches project to develop biomass-fuelled energy technologies

Xinhua | 2013-2-14 13:23:55
By Agencies

Cambodia's Ministry of Industry, Mines and Energy on Thursday launched a four-year project, aiming at promoting the development of biomass-fuelled renewable energy generation technologies in industrial sector, officials said.

The 5.6 million US dollar project will provide technical and partial financial support for the implementation of biomass-based renewable energy projects in five sectors: food processing, garment factory, brick kiln, rubber factory, and rice milling, the national project coordinator Chea Chan Thou said.

"Under the project, we will provide sustained transfer of efficient, cost effective and environmentally friendly biomass- fuelled energy technologies to those sectors in order to reduce global environmental impact from greenhouse gas emissions," he said.

Minister of Industry, Mines and Energy Suy Sem said at the launching ceremony that currently, energy demand is growing rapidly in industry sector; however, industrial development must take into account environmental protection, or the country will face serious consequences.

"The project is a great help for industries in saving production cost, improving product quality and productivity, as well as reducing greenhouse gas emission by transferring new appropriate biomass-based technologies for power generation," he said.

The project is technically and financially supported by the United Nations Industrial Development Organization (UNIDO) and Global Environment Fund (GEF).

Saturday, May 11, 2013

Cambodia: ‘Power cuts just a transitional problem’

Government Has 13 Payment Guarantees for Energy Projects

A CPP lawmaker said yesterday the government has signed 13 payment guarantees to companies constructing coal-fired power plants and hydropower dams in the country, a move that an Asian Development Bank (ADB) official reiterated was risky for the country’s fiscal future.

CPP lawmaker Cheam Yeap said the most recent payment guarantee approved by the National Assembly last Friday on the $781 million Lower Sesan 2 dam project in Stung Treng province is typical when any major company makes an investment in an energy project. …

“It is the government’s obligation to do a guaranteed payment for investment companies whenever Electricite du Cambodge [EdC] [might] miss a payment or don’t pay the bill,” Mr. Yeap said. …read more from the link below.

By Kuch Naren and Dene-Hern Chen:  http://www.cambodiadaily.com/news/government-has-13-payment-guarantees-for-energy-projects-11377/

Cambodia energy demand set to beat regional average

Source From: Phnom Penh Post:



ADB report says the Kingdom will develop a huge appetite for energy as more homes are connected to national grid

"Electricity is ... a pleasure if you have it, so development should be promoted."

ENERGY demand in Cambodia will grow 3.7 percent per year from 2005 to 2030, outpacing the regional average of 2.4 percent, according to a new report by the Asian Development Bank (ADB) and the Asia-Pacific Economic Cooperation (APEC).

The report, Energy Outlook for Asia and the Pacific, which was released Tuesday at the Pacific Energy Summit in Tokyo, projects that energy demand in Cambodia will rise from 4.8 million tonnes of oil equivalent in 2005 to 12 million tonnes in 2030 as manufacturing industries are established and more households are connected to the electricity grid.

It did not say how much Cambodia would need to invest to meet energy needs, but placed the price tag for the Asia and Pacific region at between US$7 trillion and $9.7 trillion.

The report’s author could not be reached for comment Thursday, but an ADB spokesperson said a detailed breakdown of investment requirements was likely to be released in December.

Although nearly 80 percent of the region’s energy needs in 2030 would still have to be met by fossil fuels – coal, oil and natural gas – the report said that more than 60 percent of the total investment in the region’s energy sector would need to be in electricity generation, transmission and distribution.

In Cambodia just 20 percent of households are connected to the national grid, which is fragmented into isolated power systems centred on provincial towns and cities. Around 75 percent of the country’s energy needs are currently met by the burning of biomass.

Rogier Van Mansvelt, a rural energy expert and consultant to the Ministry of Industry, Mines and Energy, said that electrification is desirable but, that immediate energy needs also need to be considered.

“Electricity is really a pleasure if you have it, so development should be promoted. But it’s good to discuss also at a regional level what is important for families, what do they like, and also the price of electricity, which is much more expensive outside of the cities,” he said.

Connecting the entire country to the grid would be expensive, said Van Mansvelt, especially in rural areas where greater distances between dwellings exponentially raised the cost. Government attempts to promote private investment in the sector could also result in higher prices for electricity, as investors need to make a return on their money, he added.

The ADB report said renewable energy technologies such as solar heating, biogas for cooking, and solar and wind power generation were potential options for extending energy to rural areas.

It also said Cambodia was looking to better exploit indigenous energy resources, namely coal and hydroelectricity, as a way of bringing down prices and boosting industrial-sector development. With power stations in the country tending to be fuelled by imported diesel, Cambodia has the highest electricity prices in the ASEAN region, it added.

“Once the country is able to tap indigenous energy resources and develop its electricity supply infrastructure, the share of the industry sector’s contribution to GDP can be expected to increase,” the report said, adding that would further boost energy demand.

The industrial sector was projected to need 15 percent more energy every year until 2030, taking its share of consumption from just 1.2 percent percent in 2005 to 14.9 percent.

A growing share of energy demand will be met by hydroelectricity, which is expected to grow 19.1 percent per year, the report said. Coal demand will grow 11.2 percent a year over the period, while the demand for oil will slow to 4.9 percent per annum, just half of its 10.3 percent annual growth rate from 1995 to 2005.
Over the period, coal is set to replace oil as the primary source of electricity generation, supplemented by hydroelectricity as more hydroelectric dams come onstream. Electricity generation from coal is expected to increase from zero terawatt hours (TWh) in 2005 to 4.3 TWh in 2030, while generation from oil will decrease from 0.8 TWh to zero TWh. Oil currently accounts for 95 percent of electricity generation, and the remainder comes from hydroelectricity.

Cambodia could learn from developed countries to reduce pollution and greenhouse gas emissions from coal power plants, the report said.

Wednesday, May 8, 2013

Cambodia's energy costs deter investors

The Phnom Penh Post - Thursday, February 07, 2013

Cambodia's infrastructure is deterring highly anticipated investment into the production of raw materials to support its rapidly growing garment sector, experts say.
While garment exports rose 10.2 per cent to $5.48 billion last year, the increase of raw materials imported to support this growth increased about 20 per cent from $2.6 billion in 2011 to $3.1 billion in 2012, according to figures from the Ministry of Commerce.
In 2011 imports were approximately 53 per cent of export value, while in 2012 imports made up about 56 per cent of export value.
Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia, said electricity costs are the simple answer to a lack of raw material production and that this is not a new phenomenon with investors anxiously waiting for power costs come down to an accessible level.
“Fabric production is a highly capital-intensive industry, it is not labour intensive. It is highly dependant on energy, so when your cost of electricity or energy is the cost that it is today, it is not economically viable for investors to come to Cambodia and invest in fabric production.
“When the price of electricity drops to a price that is more acceptable, you will see many investors come in quickly, they have been waiting for 10 years.”
Andrew Hong, permanent secretary-general of the Association of Southeast Asian Nations (ASEAN) Federation of Textile Industries said: “Strategically of course there would be a big market for raw material consumption in Cambodia, however in order to produce a raw material like yarn or fabric, the infrastructure may not be there.”
“Basically they [investors] invest in garments as they have duty free GST [goods and services tax] to Europe that is why they are moving to Cambodia, but because infrastructure and logistics do not support raw material production, the investment is not on that part.”
Hong said that while China’s scalability driven by both export and domestic demand has made it an attractive place for garment producers to purchase raw materials, a shift is occurring driven by both costs of production and a change in buyer behaviour.
“The downside of China is that the quantity that they require is very big, that means they must have big production runs,” said Hong.
“The world is now shifting in to smaller quantities and shorter runs per style, per colour. So that is why you will see a shift from buying raw materials from China to the other producing countries in ASEAN and the rest of the world.”
Loo still sees China as a major exporter of raw materials but he too sees opportunities in neighbouring countries.
“It’s always a cost consideration, the fact that [Chinese] fabric is becoming more costly comparatively to ASEAN fabric, or rather the premium on ASEAN fabric, the cost is getting lower,” Loo said.
“It makes sense, due to proximity, due to the time it takes to get the fabric delivered to the factory its more feasible to now consider acquiring raw fabric from our neighbouring countries as opposed to getting it only from China.”

Tuesday, May 7, 2013

Cambodia SME: energy sector needs to be organised

Sunday, May 5, 2013

Move to lift energy efficiency in Cambodia

Saturday, May 4, 2013

Solar-powered plane takes off for flight across U.S.


SAN FRANCISCO | Fri May 3, 2013 7:06pm EDT

 

(Reuters) - A solar-powered airplane that developers hope to eventually pilot around the world took off early on Friday from San Francisco Bay on the first leg of an attempt to fly across the United States with no fuel but the sun's energy.
The plane, dubbed the Solar Impulse, departed shortly after 6 a.m. local time from Moffett Field, a joint civil-military airport near the south end of San Francisco, heading first to Phoenix on a slow-speed flight expected to take 15 to 20 hours.
The spindly looking plane barely hummed as it took flight in the still northern California morning as the sun was just beginning to peek out over the Santa Cruz Mountains to the east.
After additional stops in Dallas, St. Louis and Washington, D.C., with pauses at each destination to wait for favorable weather, the flight team hopes to conclude the plane's cross-country voyage in about two months at John F. Kennedy International Airport in New York.
Swiss pilots and co-founders of the project, Bertrand Piccard and Andre Borschberg, will take turns flying the plane, built with a single-seat cockpit, with Piccard at the controls for the first flight to Arizona. He is tentatively scheduled to land in Phoenix at 1 a.m. local time on Saturday.
The project began in 2003 with a 10-year budget of 90 million euros ($112 million) and has involved engineers from Swiss escalator maker Schindler and research aid from Belgian chemicals group Solvay - backers who want to test new materials and technologies while also gaining brand recognition.
Project organizers say the journey is also intended to boost worldwide support for the adoption of clean-energy technologies.
"I hope people understand the potential of this technology and use it on the ground," Borschberg, who flew for the Swiss Air Force for more than 20 years, told reporters as Piccard suited up for the flight nearby. "If we don't try to fly today using renewable energy, we never will."
With the wingspan of a jumbo jet and the weight of a small car, the Solar Impulse is a test model for a more advanced aircraft the team plans to build to circumnavigate the globe in 2015.
The plane made its first intercontinental flight, from Spain to Morocco, last June.
SOLAR CELLS BUILT INTO WINGS
The aircraft runs on about the same power as a motor scooter, propelled by energy collected from 12,000 solar cells built into the wings that simultaneously recharge batteries with a storage capacity equivalent to a Tesla electric car.
In that way, the Solar Impulse can fly after dark on solar energy generated during daylight hours, and will become the first solar-powered aircraft capable of operating day and night without fuel to attempt a U.S. coast-to-coast flight.
But the plane, which from a distance resembles a giant floating insect in the sky, is unlikely to set any speed or altitude records. It can climb gradually to 28,000 feet and flies at an average pace of just 43 miles per hour (69 km per hour).
The current plane was designed for flights of up to 24 hours at a time, but the next model will have to allow for up to five days and five nights of flying by one pilot - a feat not yet accomplished.
Meditation and hypnosis were part of the training for the pilots as they prepared to fly on very little sleep.
Asked about the downside of solar-powered flight at a news conference in March to unveil the current plane, Piccard acknowledged there was a price paid for the tiny carrying capacity and massive wings.
"In that sense, it is not the easiest way to fly," he said. "But it is the most fabulous way to fly, because the more you fly, the more energy you have on board."
He added: "We want to inspire as many people as possible to have that same spirit: to dare, to innovate, to invent."
The plane's four large batteries, attached to the bottom of the wings along with the plane's tiny motors, account for a quarter of its overall heft.
The aircraft's lightweight carbon fiber design and wingspan allow it to conserve energy, but also make the plane vulnerable to being tipped over.
A ground team of weather specialists, air traffic controllers and engineers track the plane's speed and battery levels and help the pilot steer clear of turbulence. Solar Impulse cannot fly in strong wind, fog, rain or clouds. Its machinery is not even designed to withstand moisture.
(Additional reporting by Braden Reddall; Writing by Steve Gorman; Editing by Cynthia Johnston, Lisa Shumaker, Nick Zieminski and Alden Bentley)