Chinese Company to invest US$500 million in Energy in Cambodia

Chinese Company to invest US$500 million in Energy in Cambodia

            JUNLUN International Holding Co., expert in mineral, coal, petroleum and gas exploration, aims to invest US$ 500 million for 6 years in energy industry in Cambodia, said Henry Xie, the company’s Chairman during the meeting with and courtesy call on NA’s President, Samdech Heng Samrin on 06 January 2012. The Director of Cabinet Mr. Koam Kosal said that the company’s Chairman would sign MOU with its investment partner, Mr. Rath Sakhorn, Samdech Hang Samrin’s Advisor and in charge of investment projects. Mr. Henry determined to make this business successful. (Rasmei Kam, 07 January 2012)

Challenges of East Asia’s Economic Growth due to Europe Debt Crisis

On 06 December 2011, Asian Development Bank has trimmed its 2012 growth forecast for emerging East Asian economies including China, as the euro zone crisis threatens to further slow an already weakening global economy. The Manila-based ADB cuts its gross domestic product (GDP) forecast to 7.2 % for the 10 ASEAN member countries plus China, Hong Kong, South Korea and Taiwan from 7.5 % in September.  It also mapped out an "extreme scenario" of European and US meltdowns, which could shave 1.2% off growth next year in East Asia including Japan, from a forecast 5.4% to 4.2%. (Rasmei Kam.)

China to Establish Metal Melting Industry in Cambodia with the amount of 500 Million Dollars

Having been exploring minerals in the north of Cambodia, one of China’s industry companies named China Nonferrous Metal Group based in Guangxi Zhuang Autonomous Region assured that it will establish metal smelt industry with the amount of 500 million dollars in the next 3 years, said Mr. Yang Daoxi, Vice Chairman of Guangxi Zhuang Autonomous Region dated 18 November 2011. He also said that Preah Vihear is potential for mineral extraction in early 2012. (Rasmei Kam, 22 November.)

Chinese metal firm to invest 500 mln U.S. dollars in Cambodia

PHNOM PENH, Nov. 18 (Xinhua) -- China's Guangxi Nonferrous Metal Group has planned to invest 500 million U.S. dollars in a steel plant and an industrial zone in Cambodia in the next three years, Yang Daoxi, vice chairman of Guangxi Zhuang Autonomous Region, said on Friday.

Yang made the announcement during a meeting with Cambodian Minister of Industry, Mine and Energy Suy Sem.

He said the Guangxi Nonferrous Metal Group had already invested 30 million U.S. dollars in exploring iron ore in Roveang district of Preah Vihear province in northern Cambodia and the exploration had successfully completed.

"Now, it is the phase of iron ore exploitation and the firm is to build a steel plant and later an industrial park in Cambodia," he said. "My visit is to ask for full support from the ministry in order to find a proper location to build the plant."

"I hope that the project will be a good pattern of cooperation between Guangxi and Cambodia," he said.

Suy Sem said the ministry fully supported the project and he would advice a proper location for the firm to build the plant.

"The project will be a huge benefit to Cambodian economy. I will support and facilitate all requests from the firm in order to achieve this ambitious project."

The minister said that in order to meet the production capacity when the plant is built, the ministry has provided other four areas rich in iron ore to the company to exploit.

Yang, accompanied by a group of Guangxi investors, arrived here on Thursday for a five-day visit.

Cambodia, China announce 1.6billion dollar deal: officials

Thursday, November 04, 2010
AFP

China’s Wu Bangguo (L) toasts with Cambodian Prime Minister Hun Sen

PHNOM PENH — China will inject 1.6 billion dollars into Cambodian infrastructure over five years, officials said Thursday, just days after the US urged the country not to become too dependent on the Asian giant.

"Within the next five years, Cambodia and China will have 23 co-operation projects," government spokesman Khieu Kanharith told reporters after a meeting between China’s top legislator Wu Bangguo and the Cambodian Prime Minister, Hun Sen.

Hydropower dams, mining projects, bridges and railway linkswould be among the initiatives funded by China between 2010 and 2015, he added.

At their meeting in Phnom Pehn, Wu and Hun Sen witnessed the signing of 16 deals, including a loan agreement arranged by the Bank of China that will see Cambodia’s largest mobile operator CamGSM borrow over 590 million dollars.

China also plans to help Cambodia build a new railway to neighbouring Vietnam, providing one of the last missing links for a pan-Asian network that would connect Singapore with China’s Kunming by train, according to the spokesman.

He said Wu also promised to boost Chinese direct investment in the kingdom, which so far this year stands at 610 million dollars.

Wu’s visit to Cambodia comes just days after US Secretary of State Hillary Clinton made a high-profile appearance in the country and urged Cambodians not to become "too dependent" on China.

Khieu Kanharith said Wu hailed the "fast growing ties" between the two countries and told Hun Sen that "China does not want to seek power and become the owner of the region".

China — a former patron of the Khmer Rouge regime, which oversaw the deaths of up to two million people in the 1970s — is the country’s top donor, according to Cambodia.

Nearly 400 Chinese companies have invested billions of dollars in Cambodia, including key infrastructure projects such as hydropower dams and coal power plants.

But China’s involvement in the country has not been without controversy.

A December 2009 decision by Cambodia to deport 20 Uighurs, a largely Muslim minority group in western China — despite their application for UN refugee status — came ahead of a 1.2 billion dollar aid and loan package from Beijing.

China has rejected accusations that the generous package was linked to the move.

Cambodia eyes Chinese investment to boost economy

BEIJING, Sept. 16 (Xinhua) -- Relations between China and Cambodia have grown closer in recent years, with Beijing investing billions of dollars in the southeast Asian nation to help boost its economy, an official said Friday.

China has become Cambodia's biggest source of foreign direct investment, said Mao Tianyu, division chief of the International Department of the Ministry of Commerce.

Chinese companies invested 395 million U.S. dollars in non-financial sectors in Cambodia last year, an increase of 83 percent year-on-year. By the end of July 2011, China's outbound direct investment in non-financial sectors in Cambodia amounted to 1.2 billion U.S. dollars, Mao said.

Cambodia's economy has been growing rapidly but is still weak compared with other countries in the region.

Its gross domestic product (GDP) rose 5.9 percent year-on-year to reach 11.44 billion U.S. dollars in 2010, a growth rate slower than Thailand's 7.8-percent increase and also below the 6.8-percent rise seen in Vietnam, said Xu Ningning, executive vice secretary-general of the China-ASEAN Business Council.

Cambodia's per capita GDP stood at 792 U.S. dollars last year with an annual inflation rate of 3.1 percent.

Most rural households in Cambodia depend on agriculture and related sub-sectors. Agriculture, apparel, real estate and tourism are the country's four pillar industries.

As a country endeavoring to integrate itself into the global economy, Cambodia has shown great enthusiasm for foreign investment.

The country approved 5.5 billion U.S. dollars in foreign investment during the first seven months of this year, up 301 percent from last year, Xu said.

Khek Caimealy Sysoda, Cambodia's ambassador to China, said she hopes to see more Chinese investment in her home country.

"Cambodia enjoys political and macro-economic stability as well as a transparent legal framework. It has a lot of potential for investment," she said.

Neak Oknha Kith Meng Signs the Agreement on Telecom Equipment

March 18, 2010
Neak Oknha Kith Meng Signs the Agreement on Telecom Equipment & Service Supply with Chinese Company

Within the Last 15 Years, Chinese Investors Control Projects Worth Up to US$6,511 Million

Source: The Mirror, Vol. 14, No. 647

“Phnom Penh: Statistics over a course of 15 years show that Chinese investors invested the largest amount among all foreign investors in Cambodia.

“According to figures received from the Council for the Development of Cambodia late last week, China invested from 1994 to September 2009 as much as US$6,511 million in Cambodia.

“The same source added that after the Chinese investment, South Korea stands at the second position with total investments of about US$2,856 million; the third is Malaysia with US$2,199 million; the fourth [?] the European Union more than US$1,135 million; fifth [?] is the USA with US$1,179 million; sixth, Thailand with about US$748 million; seventh, Taiwan with about US$654 million; eighth, Singapore with about US$519 million; ninth, Hong Kong with about US$278 million; and tenth, Japan with about US$148 million.

“Most of the investment projects of the 10 investors focus on tourism and on industry.

“The same source went on to say that tourism received up to 48% of the investments, followed by 23% for the industry, and also 23% for services. However, there is little investment in agriculture, which received only 6%.

“Based on the above figures, within 15 years, it is noticed that in 2008 alone, foreign investment in Cambodia grew up to US$10,891 million, followed by 2006 with US$4,415 million; 2007 had about US$2,673 million, and by September 2009 it was only US$1,610 million.” Rasmei Kampuchea, Vol.18, #5098, 13.1.2010

China's investment in Cambodia fixed assets dives amid downturn

China's investment in Cambodia fixed assets dives amid downturn

Tuesday, 11 August 2009
Nguon Sovan
The Phnom Penh Post

The Kingdom eyes more diversified involvement from Japan, whose investment grew from zero last year to just under $5 million so far in 2009

FIXED-asset investment in Cambodia by China and South Korea plunged in the first half of 2009, while Japan's fixed assets spiked during the same period, according to a report from the Council for the Development of Cambodia released earlier this month.

Chinese investments dropped more than 93 percent, and South Korean capital declined nearly 58 percent, the report stated.

Chinese investment by fixed assets in Cambodia dropped to US$242.43 million, from $3.86 billion during the first half of last year," the report said. "Korea was down to $109.2 million from $258.09 million last year."

Fixed asset investments by Japan during the same period, the report noted, hit $4.76 million in the first half of this year, up from nothing last year.

Yun Heng, deputy director of the Evaluation and Incentive Department at the Cambodian Investment Board, an arm of the CDC, characterised the decline in investments as the result of smaller-scale projects this year.

"When we look at the [Chinese and Korean] figures, it's bad, but those countries still have a similar number of ongoing projects. They're just smaller than last year's projects," he said.

Yun Heng said most of the South Korean investments related to real estate, agriculture and tourism, while Chinese investments focused on real estate, garment factories, mining and hydroelectric dams.

Japanese investment typically targets tourism, Yun Heng said, but added that Cambodia hopes to see this diversify into the IT and manufacturing sectors.

Lee Hyoung-seok, deputy director general of the Korea Trade-Investment Promotion Agency, said Monday that it was inevitable during times of economic crisis that investments would drop.

"[Investment] has definitely dropped because of the global recession and the real estate downturn, so Korean investment opportunities in Cambodia are now smaller than they were two or three years ago," Lee said. "Investors ... are watching the economic environment before making further investments."

Cambodia passes $2.8b public investment plan

Source: (Xinhua)
Updated: 2009-06-01 11:41

PHNOM PENH -- Cambodia's Council of Ministers approved a three-year plan drafted by the Ministry of Planning to spend US$2.8 billion on public investment from 2010 to the end of 2012, national media reported on Monday.

The plan related to 536 projects, 389 of which are direct investment with the remainder technical assistance projects, the Cambodia Daily quoted the council as saying.

Minister of Planning Chhay Than said earlier that the majority of the budget would be spent on infrastructure and irrigation systems to boost agricultural production.

The list of planned projects also includes the construction of major roadways, hospitals and schools, Than said.

The new three-year plan is part of the broader national development planning strategy 2006 to 2010, which was approved by the National Assembly in May 2006.

The entire state budget approved for 2009 totals approximately US$1.9 billion, meaning that each year the proposed infrastructure projects would consume the equivalent of about half of the current national budget.

China top investor in Cambodia in 2008

Source: (Xinhua)
Updated: 2009-02-05 10:27

PHNOM PENH -- China was No. 1 foreign investor in Cambodia last year in terms of approved projects in Cambodia, nearly four times the capital of second-placed South Korea, national media on Thursday quoted official figures as saying.

China invested US$4.3 billion in 2008 in Cambodia, or 40.14 percent of the total, and South Korea US$1.2 billion, or 11.39 percent of the total, said the 2008 report issued by the Cambodian Investment Board.

The Chinese projects were in a wide range of sectors, including garments, hydropower, agribusiness and bodiless, while the largest Chinese investor was Tong Min Group Engineering with US$3.8 billion for a coastal development project in Kampot province, it added.

"The Chinese leadership encourages investors to come to Cambodia... (and) the Chinese government is pushing investors to come here," Sok Chanda, secretary general of the Council for Development of Cambodia, was quoted by English-language newspaper the Phnom Penh Post as saying.

In addition, China expert Michael Sullivan said that close ties between the private sector and the government gave Chinese firms an advantage.

"This is all occurring within the context of emerging bilateral ties between China and Cambodia," said Sullivan, who is conducting a research for the Association of Southeast Asian Studies under UK sponsorship.

In 2007, the Cambodian Investment Board put Malaysia as the foreign investment champion, with China and South Korea trailing behind.

China to build $540m hydro plant in Cambodia -media

BEIJING, June 21 (Reuters) - A Chinese company will build a $540 million hydropower plant in Cambodia's Koh Kong province to help ease a power shortage in the poor southeast Asian nation, China's Xinhua news agency said on Saturday.

The Stung Tatay project, to be built by China National Heavy Machinery Corporation, will take five years to complete. The company will operate the plant for 37 years and sell the power to the government, the report said.

After that, ownership of the plant will be transferred to the Cambodian government, it added.

China and Cambodia have close ties, and Beijing was a keen supporter of the brutal Khmer Rouge regime that was toppled by invading Vietnamese troops in 1979. (Reporting by Ben Blanchard; Editing by Clarence Fernandez)

Source:http://uk.reuters.com/article/oilRpt/idUKPEK21739420080621

Chinese companies to build hydro-power plants for Cambodia

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.

Source: http://news.xinhuanet.com/english/2008-06/21/content_8411431.htm

$450 million investment agreement signed [with China]

$450 million investment agreement signed [with China]

Saturday, June 2, 2007
Everyday.com.kh

Translated from Khmer by Socheata
On 30 May 2007,

the Chineseprovince of Kwangsi signed an agreement with Cambodia on a plan for 4 investments amounting to $450 million. The 4 investments include:

1. Development of new housing in Sihanoukville


2. Construction of a new oil terminal in Sihanoukville


3. Development of a potato plantation and a potato processing plant


4. Construction of 16-kilometer of BOT (Build/ Operate/ Transfer) highway linking Phnom Penh city and the
   Phnom Penh international airport.

These 4 investments become effective immediately upon signature of the agreement.

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