Project Description
Leader Energy Group Berhad (formerly known as Leader Energy Holding Berhad) is an independent power producer engaged in the development, ownership, operation and maintenance of renewable energy power generation and transmission assets across seven countries in Asia. Through a subsidiary incorporated in Cambodia, Cambodian Transmission II Co., Ltd (CTL II), it has acquired the project of a 125km long high voltage double-circuit 230kV transmission line between Kampong Cham and Kratie substations in Cambodia. There are 310 transmission towers spanning the 230/115kV Kampong Cham substation and the 230/22kV Kratie substation. The transmission line is energized by hydropower supplied from the north of Cambodia and from cross-border power imports from Laos. The project was developed on a build-own-transfer basis and a 25-year power transmission concession with the state-owned power utility, Electricité du Cambodge (EDC) as the offtaker. CTL II will be financing this acquisition with a long-term project finance loan.
This summary describes the application made to MIGA to provide political risk insurance coverage to Mizuho Bank, Ltd., and/or any of its subsidiaries (Mizuho), and other commercial lenders to be identified, to cover the loan and hedging instruments of up to US$ 214 million against the risks of Expropriation, Breach of Contract, Transfer Restriction, and War and Civil Disturbance for up to 15 years.
Environmental Categorization
The Project is classified as Category B under MIGA’s Policy on Environmental and Social Sustainability . Click here to view the project’s Environmental and Social Review Summary and Environmental and Social Action Plan.
Development Impact
The Project is expected to improve the capacity of Cambodia’s transmission system to manage increasing demands for electricity and to cope with the variability of renewable energy sources. The Project forms an integral section of a backbone transmission line that supplies hydropower from the north of the county to a significant power demand center in Phnom Penh and other demand nodes in-between. The Project is expected to demonstrate the viability of foreign commercial lending into Cambodia’s energy sector and contribute to overall resilience of the power sector in the long term.
The Project is aligned with Cambodia’s Power Development Masterplan 2020-40 power sector strategy to strengthen the transmission network to support increasing demand for electricity. It also aligns with the objectives of the World Bank’s Country Partnership Framework, to boost private sector development and enhance economic competitiveness.
