Cambodian Ministry of Industry, Mines and Energy on Thursday signed with China's Sinohydro Corporation a contract to develop Kamchay hydroelectric BOT (Build- Operate-Transfer) project.

The state-run Chinese company was awarded the contract last year to build the 280 million hydroelectric dam on Kamchay Mountain near Bokor National Park in Kampot province, about 150 km southwest of the capital Phnom Penh.

It is the largest hydroelectric project invested by a Chinese company and the largest one in Cambodia, demonstrating the friendly cooperation between China and Cambodia, said Chinese ambassador to Cambodia Zhang Jinfeng, who attended the ceremony.

The Chinese company will have the right to operate the plant for 40 years, and the project will be completed in four years.

To build a hydroelectric dam in Kamchay has been a dream cherished by Cambodia since the 1960s, which conforms to the royal government's "Rectangle Strategy" and the policy of poverty reduction, said Cambodian Deputy Prime Minister and Minister of Council of Ministers Sok An, who was also present at the event.

He expressed belief that the Kamchay project will contribute to the country's flood prevention, employment and the revenue, and electric supply in particular.

Liu Qitao, chairman of the Board of Sinohydro Corporation, promised the project will supply "large quantity, high quality, safe, stable and environmental-friendly electricity."

With the total install capacity of 193.2 megawatts, the project will provide 498 GWh energy every year. The power generated by the dam is to be distributed through grid lines to Phnom Penh through Kampot, Takeo and Kandal provinces.

Source: Xinhua