Phnom penh: Cambodia has received a concessional loan of US$110 million and a grant of US$5 million from the World Bank to support its sustainable energy transition projects. The funding aims to bolster Cambodia's efforts in developing its energy infrastructure and transitioning towards more sustainable energy sources.

According to Agence Kampuchea Presse, the announcement was made during a workshop on Early Market Engagement and Participation Status for the Battery Energy Storage System (BESS), Transmission Line, and Substation Projects under the Cambodia Sustainable Energy Transition (CSET) Project. This initiative is funded by World Bank concessional financing and seeks to upgrade the country's energy systems.

The workshop, held on July 22, was chaired by H.E. Dr. Praing Chulasa, Delegate of the Royal Government of Cambodia in Charge of Managing Electricit© du Cambodge. The project is jointly implemented by the Ministry of Mines and Energy and Electricit© du Cambodge (EDC).

The scope of work under EDC includes the construction of transmission lines and electrical substations, a battery energy storage system (BESS), and distribution grid expansion and reinforcement. This also encompasses the preparation of electric vehicle (EV) charging infrastructure, distribution grid setup, and Advanced Metering Infrastructure (AMI).

In line with World Bank procurement procedures, the workshop aimed to present the project scope, implementation plans, technical specifications, and procurement procedures. It also sought to gather feedback from construction companies, equipment suppliers, and relevant stakeholders to ensure fair competition, transparency, and adherence to international implementation standards.

The expansion of the transmission grid, substations, and distribution network is expected to enhance power supply capacity, improve quality, and ensure power stability in high-demand areas. Additionally, it will increase electricity supply capacity in rural areas, particularly for remaining low-income households included in the final phase of the project.

The development of EV charging infrastructure is also anticipated to help reduce fossil fuel consumption in the transport sector, while the Advanced Metering Infrastructure (AMI) will facilitate a smart power grid and reduce operational costs.