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China and Cambodia sign hydropower pact

Chinese and Cambodian firms have signed an agreement to develop a USD 781 million hydropower project in the northeast part of Cambodia

A USD 781 million project in Cambodia was approved by the government in November

Cambodian business group, Royal Group and Chinese Hydrolancang International Energy on Monday signed a joint-venture agreement to build a 400-megawatt hydropower dam on Mekong tributary in Stung Treng province in north-eastern part of Cambodia.

The USD 781 million project in the north-eastern part of Cambodia was approved by the government earlier this month and is a concessional contract of a 45 year build-operate-transfer (BOT) of which five years for construction and 40 years for operations.

The Cambodian government approved the dam construction earlier this month. The dam project is a joint venture among Cambodian, Vietnamese and Chinese firms and is a concessional contract of a 45-year build-operate-transfer (BOT) – 5 years for construction and 40 years for operations.

The agreement was signed between Cambodian telecoms tycoon Kith Meng, president of the Royal Group, and Huang Guang-ming, chairman of the Hydrolancang International Energy.

Kith Meng said that the investment for the dam on Sesan River in Stung Treng province's Sesan district was the first non- governmental, multi-lateral project with shareholders from China, Cambodia and Vietnam.

Stung Treng province is situated in northeastern Cambodia, 48km from Phnom Penh, the capital of Cambodia.