Cambodia's energy sector is facing
major challenges. Despite considerable progress in expanding
the capacity and coverage of electricity supply in recent
years, electricity... Show More +
costs remain to be among the highest in
the world, and electrification rate, one of the lowest in
Asia. As Cambodia's power supply relies heavily on
imported fuels, a new challenge is emerging due to the
increases of international fuel prices. At the moment, the
government is exploring new sources of energy, including
hydropower, offshore and onshore oil and gas, and renewable
energy. There is a consensus between the government and
international development agencies that a coherent energy
sector strategy is needed and that its formulation should be
based on careful assessment of various energy sources and
the policy and institutional framework for their
development. This issues paper completes the first phase of
a three-year program in Cambodia to create a strategic
framework to govern the systematic development of the energy
sector and to formulate a coherent energy sector strategy
and implementation plan. This exercise is undertaken in a
participatory manner, with the Royal Government of Cambodia
(RGC) taking a lead and the donors, namely Asian Development
Bank (ADB), International Development Agency (IDA), Japan
International Cooperation Agency (JICA) and Japan Bank for
International Cooperation (JBIC), providing appropriate
technical and financial resources. The scope of the exercise
will cover the entire energy sector. Its outcome is expected
to be the RGC's adoption of the strategy and the
implementation plan, which will help define a coherent
framework for sector development and donor assistance. The
exercise will be undertaken in three phases. In the first
phase: identification and preliminary analysis of issues,
and justification and proposal for a subsequent work program
with associated thematic studies. All elements are
summarized in this issues paper, along with the terms of
reference (TOR) for some priority thematic studies. The
second phase: preparation of priority thematic studies and
assistance to RGC in developing an energy sector strategy
and implementation plan. The third phase:
revision/modification of legal, regulatory and institutional
frameworks, implementation of an agreed sector and
institutional structure according to the sector strategy,
capacity development of the institutions, and finalization
and implementation of an agreed investment plan taking into
account ongoing investments. Show Less -
