Wedoany.com Report-Feb 26, A Chinese industrial group plans to allocate $1 billion for a pumped-storage system in southwest Cambodia. Yicai reports that the Upper Tatai Pumped Storage Power will enhance the existing 150MW Tatai hydropower project, led by China National Machinery Industry Corporation (Sinomach), with a target completion date set for next year.

Prime Minister Hun Manet speaking at the inauguration of the Tatai hydropower project in 2024

The storage initiative will utilize surplus electricity from the hydropower facility to move water between two reservoirs, situated 3 kilometers upstream from the dam. This setup will power four 250MW turbines, achieving a total capacity of 1GW.

The generated electricity aims to stabilize Cambodia’s power grid, particularly by balancing contributions from variable sources like wind and solar.

China Heavy Machinery, a subsidiary of Sinomach based in Sichuan province, will oversee the construction and operation of the facility. The company has entered into a build, operate, and transfer agreement with Cambodia’s Ministry of Mines and Energy and the state-owned utility Electricité du Cambodge.

Per the agreement, Sinomach will not incur land rental costs and will benefit from fixed fees throughout its 40-year concession period.

China Heavy Machinery will contribute $251 million from its own resources, with the remaining funds secured through bank loans. The expected return on investment is anticipated to exceed 8%.

The project is slated for completion before 2030.