MIGA backs refinancing of Cambodian power project
The Multilateral Investment Guarantee Agency has issued guarantees that will support the refinancing of existing power transmission infrastructure in Cambodia’s capital Phnom Penh and surrounding areas.
The move paves the way for commercial funding to replace financing previously offered by the Export-Import Bank of Malaysia Berhad.
Issued to Mizuho Bank of Japan and ING Bank of the Netherlands through its Singapore Branch, the guarantees amount to $76 million and cover up the lenders’ loans for up to ten years.
The guarantees will provide protection against currency inconvertibility & transfer restriction, expropriation, breach of contract, and war & civil disturbance.
The project, implemented and operated by foreign firm Cambodian Transmission, consists of a 230kV transmission network that connects the Phnom Penh region with power generators in the east and northeast of the country. The network also provides an interconnection to the Cambodia-Vietnam and Cambodia-Thailand borders in the south and northwest of the country respectively.
