China Datang Corporation Ltd has offered Cambodia $600 million to fund renewable energy projects and support the implementation of the Cambodian Government's Rectangular Strategy.

According to a statement from the Prime Minister on his Telegram channel, for the third celebration of the Belt and Road Initiative in China, Hun Manet met Zou Lei, Chairman of China Datang Corporation Ltd to discuss two investments in Cambodia.

These are a 120-megawatt electricity project and a 290 km transmission project connecting Phnom Penh and Battambang.

At the meeting, Zou Lei congratulated Cambodia’s new leadership and committed an additional $600 million in investments in solar and wind energy projects to contribute to the implementation of the Rectangular Strategy.

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The Prime Minister thanked the company, which recently invested in projects in Cambodia’s energy sector, for operating successfully.

He also encouraged other companies to invest in Cambodia's energy sector, especially those involved in the transfer of technology and renewable energy, focusing on innovative technological investments that could further strengthen efficiency.

Rim Sokvy, a research fellow at CICP, told Kiripost that this investment is a positive sign for Cambodia, especially in the power sector. He added that six power stations have been supported by China in Cambodia.

“If we compare the electricity between Cambodia with Thailand and Vietnam, we are a bit more expensive than them, and the more we use, the more we spend. Therefore, this Chinese investment can be one actor to facilitate these challenges,” he said.

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Economic experts Hong Vannak and Nget Chou were not available for comment at the time of publication.