Cambodian Transmission II Co., Ltd. (MIGA-15098)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Cambodia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Kampong Cham, Kratie
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Mizuho Bank, Ltd.; Leader Energy Group Berhad
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Hydropower
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 214.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jan 7, 2025

Disclosed by Bank Oct 16, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the MIGA, 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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on the project disclosure page, MIGA has been asked to provide a guarantee for a period of up to 15 years to cover loans provided by Mizuho Bank, Ltd. (Mizuho, the Guarantee Holder, or the GH) of Japan, and potentially other commercial lender(s), participating in a brownfield project financing to Cambodian Transmission II Co., Ltd. (CTL II, the Project Enterprise, or the PE), following its acquisition of an existing high voltage transmission line in Cambodia from Diamond Power Limited (DPL).

CTL II, whose ultimate parent company is HNG Capital Sdn. Bhd., is an operator and owner of an existing transmission line that comprises a 125km long 230kV double circuit transmission line with 310 towers connecting a 230/115kV substation in Kampong Cham (GSKC) and a 230/22kV substation in Kratie (GSKTE) in the Kingdom of Cambodia.

The Project is a build, own, transfer project which is designed for 25 years of operation and sells power to the state-owned company Electricité du Cambodge (EDC) under a power transmission agreement. Since it commenced operations in 2018, the Project has been providing reliable electricity to the national grid.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Electricite Du Cambodge Buyer Energy
- - - - Mizuho Bank Ltd Investor Finance
HNG Capital Sdn. Bhd. Parent Company Industry and Trade owns Leader Energy Group Berhad Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project documentation is available at:

Mr. Felimonito Cuevas Lirasan - CTL II General Manager
Phone: +855 23 221703
Fax: +855 23 221783
Address: No 113, Corner of Norodom Boulevard (St. 41) and Street 240, Phum 4, Sangkat Chak Tomuk, Khan Daun Penh, Phnom Penh, Kingdom of Cambodia

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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