[PHNOM PENH POST]
The National Assembly voted without debate yesterday to guarantee
perhaps millions of dollars in payments for electricity from a power
plant being built by a company owned by ruling party Senator Lao Meng
Khin.
Government officials praised the project yesterday, which
has come under criticism for its lack of transparency and its connection
with the controversial senator, saying it would provide the Kingdom
with much-needed electricity and jobs while having a minimal impact on
the environment.
But opposition lawmakers walked out in protest
amid lingering questions about how the concession was awarded and
whether the electricity will be priced fairly. Sam Rainsy Party
parliamentarian Mu Sochua posed numerous questions about the Preah
Sihanouk province project during the brief hearing to National Assembly
President Heng Samrin, who refused to answer or provide time for debate.
“We walked out because I asked all these questions… and then he
didn’t answer anything – did not allow any discussion at all,” Mu
Sochua said yesterday.
She said the prospect of holding a proper debate was “too hot” for the ruling party.
“This [decision] does not reflect a parliament that is independent, that is neutral,” Mu Sochua said.
Minister
of Economy and Finance Keat Chhon expressed gratitude to the lawmakers
who supported the measure and criticised the opposition for seeking
further debate. He added that the government could have responded to the
questions raised, but said it would have been “a waste of time”.
The
Ministry of Economy and Finance had asked the National Assembly to
guarantee any debts owed to Lao Meng Khin’s firm by state power company
Electricité du Cambodge.
The senator’s company, Cambodia
International Investment Development Group Co Ltd, earned Hun Sen’s
approval in December for a joint venture with a Chinese firm to
construct and operate the US$362 million plant. CIIDG subsequently
entered into a power-purchase agreement with Electricité du Cambodge in
January.
Lao Meng Khin also heads Shukaku Inc, which is
developing the Boeung Kak lakeside in a joint venture with a Chinese
firm. The project has drawn widespread condemnation for its expected
displacement of more than 4,000 families who so far have not received
proper compensation.
Mu Sochua, who told The Post on Wednesday
that lawmakers had been given minimal information about the plant, said
in parliament yesterday that the measure before lawmakers should be
opposed because of the company’s connection to abuses at the lakeside
and the opaque nature of the project.
“We have to have a clear
understanding of the project before we raise our hands in approval. The
SRP is not in support of the company linked to the Boeung Kak project,
which owes the blood of the poor,” she said.
According to
documents signed by Prime Minister Hun Sen on March 16 and presented to
the National Assembly yesterday, CIIDG has agreed to sell power to
Elecricité du Cambodge at a cost of 8.43 cents per kilowatt hour.
The
documents note, however, that fluctuation in the price of coal may
alter the price of the electricity. The 270-megawatt plant is set to
supply the state power company with 1.8 billion kilowatt hours per year.
CIIDG
will enjoy a tax exemption for VAT and income during the first nine
years of its 33-year concession. After that, the government said it
expects to haul in $15 million per year in taxes, in addition to an
estimated $8 million for taxes on imported coal and petroleum.
The
government has also agreed to waive taxes for importing machinery,
construction materials and spare parts during the first year of an
expected three-year construction period.
Observers expressed
concern about the proposed power plant, citing the potential
environmental impacts of coal to both the air and water in the tourist
hub of Sihanoukville, and stressed the need for greater transparency.
Ame
Trandem, Mekong campaigner for the environmental group International
Rivers, said the price of electricity in the agreement – 8.43 cents per
kilowatt hour – appeared to be the “most expensive” for a project she
had seen in Cambodia, citing a 2009 study by NGO Forum and Probe
International that said Electricité du Cambodge was buying electricity
from hydropower dams and other projects at between seven and eight cents
per kilowatt hour.
Mam Sambath, chairman of local watchdog group
Cambodians for Resource Revenue Transparency, said he expected the cost
per kilowatt hour of 8.43 cents to rise significantly, perhaps by three
or four times, when it is re-sold to consumers by Electricité du
Cambodge.
“I’m afraid that’s the buying price, and the selling price is more expensive,” he said.
He
acknowledged the need for cheaper power for rural Cambodians, but said
he was “worried” about the transparency of the project and its apparent
disregard for any division between business and politics.
“How
could we ensure … a distinction between the power of the legislative
branch and the business sector?” he said. “Let the people examine this
process as well …. We don’t want this project to be repeated like at
Boeung Kak lake.”
No comments:
Post a Comment