Category Archives: News

(Khmer Times: January 08, 2021)

In Cambodia’s post-COVID-19 era, solar photovoltaic (PV) power is seen as yielding future benefits throughout the Kingdom’s economy.

The nation’s electricity demand has sustained robust growth over the past decade but more will be needed as communities and the population grow and PV power yields significant economic benefits over conventional power sources.

The United Nations Development Programme (UNDP) Cambodia’s resident representative, Nick Beresford, said yesterday solar technology is moving fast, is far cheaper than carbon-based energy and provides clean electricity. He said the UNDP is working with the Ministry of Mines and Energy on projects to ensure the country  fully benefits from this relatively new, sustainably sound technology.

“There are 237 villages off the national grid classified as hard to reach. The UNDP, together with the ministry, is helping provide good quality energy to them using direct current [DC)] mini-grids,” said Beresford.

He added it’s cheaper and makes energy supplies more reliable. “We are at the pilot stage now and we hope to see DC mini-grids rolled out for all off-grid villages.”

Beresford said solar-powered water pumps are a great low-cost option for farmers because they are easy to move and can significantly increase yield. The UNDP together with the Ministry of Mines and Energy and South Korea is helping to extend their use and build up local service centres.

Cambodia is particularly well-suited for solar energy because it receives good quality sunlight in areas of high energy demand. Reform of rooftop solar energy regulations has the potential to better exploit this opportunity and is another area being worked on.

The UN organisation is currently working with the government on an economic appraisal of the potential of  PV energy. “This research is clearly showing higher potential economic growth and better social outcomes that come with further investments in solar and other renewable energy. We hope to see the report released this year,” said Beresford.

He added the government is making significant investments to improve the stability of the grid which will allow a more decentralised, more stable and efficient energy system.

There are some major connected opportunities in new digital energy technology. For example, supervisory control and data acquisition, energy management systems and demand-side management would allow Cambodia to improve grid management and control. That makes it much easier to build in more solar power.

“Reformed regulations can crowd in more private investment and lower energy costs to the end user,” Beresford added.

Cambodia has some of the most robust solar energy resources in the ASEAN region. In three years, it went from testing a 10 megawatt (mW) pilot project to commissioning a total of 265 mWs at year’s end. Soon, 450 mW of solar power will be connected to the national grid, tentatively by the end of this year.

Amru Rice will pilot the use of solar energy in its warehouses, becoming the first rice miller to be equipped with solar energy systems.

The piloting of this solar energy system will be conducted soon a an Amru rice mill located in Kampong Thom province.

It is installed on the roof of the paddy warehouse and expected to serve more than 10 hectares with a capacity of 262 kilowatts peak, according to Kann Kunthy, vice-president of Amru Rice (Cambodia) Co. The  piloting of the system will be carried out through a build-operate-transfer (BOT) project between Amru Rice and Total Co.

It will be installed in synchronism with state electricity with permission from Electricity of Cambodia. Kan Kunthy said the use of solar energy will help boost the rice sector in terms of production costs, such as less time spent milling and drying rice and help push the production line to meet market demand.

Amru Rice President Song Saran said the installation of solar-sourced energy in the paddy warehouse and processing production aligns with moves to a greener economy. He added it also helps meet the seventh goal of the Sustainable Development Goals (SDGs) in 2030 to provide affordable and environmentally friendly energy.

At the end of 2019, Cambodia’s installed power capacity totalled 2,980 Mw. Eighty percent of this supply came from domestic power plants, mainly hydropower dams. Fossil-fuel sources supply the remainder of Cambodia’s power capacity with coal and heavy fuel oil. The country also imports a total of 626 Mw of electricity from neighbouring Vietnam (323 Mw), Thailand (227 Mw), and Lao PDR (76 Mw), through high and medium voltage networks.

Thailand has the highest total potential PV in the region of 10,538 gigawatts (gW) according to the National Renewable Energy Laboratory (NREL) in its 2019 report.

The NREL estimates Cambodia has the third-highest resources in the ASEAN region, with  3,198 gW of total PV potential. Cambodia is expected to have 0.445 gW of installed PV capacity by 2022, amounting to just 0.014 percent of its potential.

MME’s spokesman and Director-General of its General Department of Energy Victor Jona said Cambodia will have 465 mW of solar power connected to the national grid in 2022 – about 15 percent of clean energy among total sources in the Kingdom.

He said to have secure and stable energy in the country, the government is considering developing a mixed energy approach. This could be from hydropower dams, solar and wind power, with some from coal power plants.

“We cannot solely consider clean energy because it is not stable. Clean energy depends on its origin and the season. Some sources of power are able to generate power in the rainy season while some can generate it only in the dry season. Therefore, we have to develop a mixed energy source to ensure its security,” Jona stressed.

(Phnom Penh Post: December 20, 2020)

In a first for the Kingdom, leading organic rice miller and exporter AMRU Rice (Cambodia) Co Ltd will pilot the use of solar energy in its facilities to increase energy sustainability during dry-season production lines that are often riddled with power outages.

AMRU Rice vice-president Kann Kunthy told The Post on December 20 that the solar power system had been installed on the roof of a paddy warehouse in Kampong Thom province’s Prasat Balang district.

The 262-kilowatts-peak system is under a Build-Operation-Transfer (BOT) scheme, backed by an estimated capital investment of $500,000 from Total, he said.

“AMRU Rice did not spend money on construction – we have provided a location for the solar panel installation and we’ll buy power from the supplier [Total] for a specific period of time.

“Once [Total] gets back the full amount of money from the sale of energy, the solar power system will be transferred to us [AMRU Rice],” Kunthy said.

He said the system was installed and synchronised with the power transmission line of the state with the permission of state-run electricity supplier Electricite du Cambodge (EdC), in accordance with the law.

“The use of solar energy will help boost the rice sector, such as by shortening the time spent in milling and drying paddy. It will also help the production line to meet the demand of domestic and foreign customers in a timely manner,” Kunthy said.

He said the use of solar energy systems also meets the seventh of the Sustainable Development Goals (SDGs), which is to provide affordable and environmentally friendly energy.

Hence, he said, the use of solar energy systems in the rice sector not only supply energy as needed, but also help the Earth.

“The use of renewable energy will not pollute the environment and will reduce greenhouse gas and carbon dioxide emissions,” Kunthy said.

Cambodia Rice Federation (CRF) secretary-general Lun Yeng said the increase in solar power would help stabilise power in rice mills, but that production costs would still be high compared to buying power from the EdC.

He said the government currently does not encourage such investments because companies have to pay for power and electricity capacity tariffs, but added that he hopes the government will change its policy to encourage the use of alternative energy sources down the line.

“What the company has done sets a good example as an organic rice producer tied to a solar power project, but solar installation is not yet profitable for our members,” Yeng said.

Victor Jona, the director-general of the Ministry of Mines and Energy’s General Department of Energy, previously told The Post that the private sector should use energy purchased from the EdC, which has a proper and low-cost national grid connection.

“With an appropriate and stable supply of electricity, there’d be no need to invest” in other sources, he said.

(Khmer Times: December 15, 2020)

In just over two weeks, the year 2020, which has been severely hit by the pandemic will come to an end, and with that, hope that the year 2021 will bring scope for economic improvement, especially from the likely availability of anti-COVID vaccines.

In October, the Asian Development Bank (ADB), World Bank, and Cambodian government forecast that the Kingdom’s economic growth will rebound by 5.4 percent, 4.3 percent and 3.5 percent respectively in 2021. Previously made projections predicted that the national economy would decline anywhere from 5.4 percent to 1.9 percent in 2020 as a result of the ravages of the pandemic.

The ADB said in a presentation in early December that improved agricultural performance and an increased volume of non-garment manufacturing had brightened the medium-term economic outlook and that Cambodia had managed the COVID-19 pandemic well and was positioned for recovery in 2021.

According to the ADB, the government’s well-timed interventions have helped to minimise the local outbreak of COVID-19 and prudent macro-economic management has enabled the government to use fiscal policy to mitigate its negative effects. The government’s stimulus in 2020, equivalent to 3.1 percent of gross domestic product, included $60 million for health measures, $300 million for social protection and $455.8 million for economic stimulus.

Last month, the National Bank of Cambodia (NBC) said it would allow banks and financial institutions to continue loan-restructuring until mid-2021.

Observing the current progress of business, 2021 would appear to be poised to enter a recovery stage. However, this would inevitably be directly tied to the COVID-19 situation, said microfinance and deposit institution PRASAC’s Executive Vice-President and Chief Marketing Officer Say Sony.

If the vaccine is widely available and effective, the outlook will be more positive. “We keep helping our clients to fight in this hard time together and we are seeing that the trend in clients asking for loan restructuring has declined and we don’t have any problems related to liquidity,” said Sony.

He added PRASAC’s loan portfolio as of Dec 10 reached $3.057 billion and deposits were $2.036 billion. “In 2021, we estimate about 20 percent growth,” Sony added.

Song Saran, chief executive officer and president of Amru Rice, is optimistic that  Cambodia’s economy will rebound strongly in 2021 with increased exports of garments, travel goods and agricultural products and a rise in tourism.

He said that people in the US, European Union and United Kingdom, the main export destinations for garment and travel goods, will likely be receiving vaccines soon and life will return to normal by mid-2021 and with that,  consumer confidence will improve.

“China is a ready market for our agricultural products. The UK has granted the tariff benefits of the Generalised System of Preferences (GSP) to Cambodia and that will include rice from January 2021 onward, so it’s returning our market in the UK back to normal, or perhaps even stronger than before new safeguard measures were introduced,” said Saran.

However, Saran said the private sector really needs the support of banks and the government for the capital and funds needed to boost production and exports. “It really needs the government to stimulate the economy and inject funds towards boosting exports,” Saran said.

ADB Cambodia Country Economist David Freedman said that Cambodia is also diversifying its export capacity, which is key to future growth because the Kingdom’s development has been built on openness to trade. The government has recognised that reforms will be needed in order to sustain growth rates after the 2020 pandemic.

“2021 will see recovery. By the end of 2021, though, the economy will be significantly smaller than it would have been had the pandemic not happened. Freedman noted, “It is a shame that Cambodia will miss out on that missed growth. However, any downside risks can be managed and we could easily expect quite strong growth in the medium term.”

The American Chamber of Commerce in Cambodia (AmCham) President Anthony Galliano said that from an economic contraction of approximately 5 percent, he expects a rebound in 2021 into positive territory, with a slow start to the year culminating in a strong finish in the second half of the year.

“I don’t expect tourism to return to normality for the full year, with only perhaps a resurrection of a tepid high season late in the year. Garments will make a comeback when the Western economies revive. These economies are unfortunately in tatters because most Western countries are experiencing the worst days of COVID since it festered in March – and the worst is yet to come,” he said.

Galliano, added that consumer buying, which drives garment exports, will only likely revive in mid 2021. He added that Cambodia is currently looking at a trade deficit and the recovery of the garment sector is essential to return to a trade surplus.  He continued that the construction sector is likely to be a bright spot, with the earliest revitalisation driven by new projects and the completion of existing ones, as well as infrastructure development.

“Agriculture remains a small part of the economy. While its growth is helpful, it is not that impactful.  Overall I expect a couple of percentage points growth as economic traction accelerates in mid-2021,” said Galliano.

Mey Kalyan, senior adviser of the Supreme National Economic Council, agreed that Cambodia has both tightened its belt and prevented a community outbreak of the virus. He said that the issue of public health is important.

“We cannot predict when the virus will end, but what we can expect is that we will have vaccines. We can strengthen ourselves in the prevention of COVID-19 and this virus has given us a lesson in how to fight against a difficult situation,” Kalyan added.

He continued that once the vaccines are available across the globe, the virus will slow down and become more manageable, but how quickly is not yet known. However, the nation cannot develop as fast as it was before the COVID-19 pandemic.

“We do not expect 2021 to offer a speedy recovery because cash flow is drying up. We need time to build up capital. Anyway, it will recover a little, but how far and how much it is impossible to predict. Our speed of recovery is slow but it will move forward and I think, towards making a recovery, but it will take at least three years. We can survive, but we will not be strong,” he added.

Thourn Sinan, chairman of the Pacific Asia Tourism Association Cambodia Chapter (PATACC), said  “The pandemic has shown no signs of its end. We are still not sure when the vaccine will be distributed across the population.” He added that, “A lot of medium businesses have sold their properties to survive or sustain their operations. The concern is that a lot of a medium businesses may be running out of capital [and will be unable to keep their doors open waiting for the recovery].

He added, “The year 2021 will be one of government subsidy programmes. it will not be the year in which the economy recovers.”

(Khmer Times: December 12, 2020)

Amru Rice (Cambodia), one of the leading milled rice exporters in Cambodia, has conducted a pilot project on Phka Mealdey, a climate change resilient rice variety.

Located on an area of one hectare inside Amru Rice mill processing factory in Prasat Balaing district, Kampong Thom province, the model paddy field Phka Mealdey variety has been exposing the yellow rice grains, as sign of almost harvest time soon.

Phka Mealdey rice variety is a medium rice variety with fragrance, seasonal, which was released and disseminated to farmers for use by the Cambodian Agricultural Research and Development Institute (CARDI) of the Ministry of Agriculture, Forestry and Fisheries in early 2018. This rice variety is good quality rice, long, smooth, soft, delicious and also has a light aroma and value for national and international markets.

Amru Rice has started this model paddy field piloting by using 60kg of seed for planting with its organic fertilizer and organic standard, under cooperation with the International Rice Research Institute (IRRI).

Besides cooperation with IRRI on this model paddy field Phka Mealdey, Amru Rice also received support on technical term from the Australian Government through Cambodia-Australia Agricultural Value Chain Program (CAVAC) specifically on rice planting machine.

“Cambodia is particularly vulnerable to the impacts of climate change, with longer periods of drought combined with excessive rain and flooding. CAVAC works with CARDI, CRF and PDAFFs to scale up the introduction of the rice variety Phka Mealdey which is drought resistant and flood tolerant,” stated CAVAC.

Dr. Ouk Makara, Director of CARDI said Phka Mealdey variety is resilient to climate change, drought and the quality and yield is also high.

“It is up to the market demand and farmer’s needs, but we conducted research every day to find the better rice crops to adapt with the climate changes. For the last two years, CARDI released two new rice varieties, Phka Mealdey and Sen Kro Ob 01,” he said.

According to CARDI, the yield of Phka Mealdey is from 3.5 to 5.5 tonnes per hectare.

Amru Rice is strongly committed to the quality of this Phka Mealdey model paddy field with all the process including the pre-planting (on seed), planting technique, and especially the post-harvested. For instance, to be cautious on the quality on the post-harvested, the drying process is practiced by traditionally under the sunlight, instead of drying in the mechanical drying system. By doing this, Amru Rice expects to get the rice quality and will be useful for the evaluation after this piloting.

(Phnom Penh Post: December 01, 2020)

Leading local rice miller and exporter Amru Rice (Cambodia) Co Ltd this year plans to buy 15,000 tonnes of organic paddy from communities in Preah Vihear province on a contract farming basis.

Specifically targeting Phka Romduol and premium white rice varieties, the company on November 14 said it will offer growers in areas frequented by traders a 15-30 per cent premium over market value, which it evaluated as an extra 170-250 riel (4.21-8.43 US cents) per kg.

Phka Romduol paddy will be purchased at 1,270-1,550 riel ($0.31-0.38) per kg, it said, underscoring that organic paddy reaps in higher revenue than conventional varieties.

“The communities that strike contracts with the company will not only gain market sustainability and revenue, but will also be able to receive training on various soft skills and practices,” Amru Rice said.

The rice miller said it began its organic paddy project in the province back in 2014 with eight initial communities, which has since risen to 22.

“Contract farming with communities will help ensure quality objectives and standards are met and secure markets for them,” it said.

Minister of Agriculture, Forestry and Fisheries Veng Sakhon on November 27 noted that the provincial Department of Agriculture, Forestry and Fisheries and Preah Vihear Meanchey Union of Agricultural Cooperative (PMUAC), a partner of Amru Rice, helped set the reference price for the organic paddy.

“Contract farming will help reinforce organic standards, cultivation techniques, business plan write-up, financial records and management,” he said.

According to the provincial agriculture department, 33 agricultural communities across the province have entered contract farming agreements with four private companies to supply 22,195 tonnes of organic paddy.

Listing the companies as Amru Rice, Signatures of Asia Co Ltd, Golden Rice (Cambodia) Co Ltd and Saravan Kampong Thom, the department noted that the communities comprise 6,197 households and cover 20,296ha.

Milled-rice exports clocked in at more than 620,000 tonnes last year, piling on 15.24 per cent from the 538,000 tonnes logged in 2015, according to the ministry.

(Khmer Times, November 14, 2020)

Cambodia’s organic rice buyer and exporter, Amru Rice re negotiated anew price for organic rice with 15 farming communities in Preah Vihear province after both sides signed the agreement earlier this season.

According to the company, Amru Rice plans to buy about 15,000 tonnes of organic rice, Romduol and white rice, offering the farmers an additional  30 percent higher than non-organic product.

“Amru Rice will offer a special price to farmers who grow organic rice, where they receive an additional value of between 15  to 30 percent or at least between 170 riel and 250 riel per kilogram above the market price offered by traders,” the company said, adding that the price provides better income  than ordinary rice production.

The price of non-organic rice is sold at between 1,200 riel and 1,300riel per kilogram while the organic value is at 1,500 riel per kilogram.

Contract farming not only provide the farmers  market sustainability and revenue, but they can also receive training from companies on various soft skills and practicalities related to organic standards, internal audit systems, techniques, cultivation planning, trading, entrepreneurship, business concepts, financial records and management.

Amru Rice’s organic rice project started in Preah Vihear province in 2014, initially with the participation of eight communities and by 2020,22 communities have signed contracts with Amru Rice.

Currently, about 8,000 smallholders are producing organic rice across the country and most of them are in Preah Vihear, accounting for 5,000 farmers, producing more than 20,000 tonnes of organic paddy in total which could be processed into about 10,000 tonnes of rice. Some 90 percent of the organic rice is exported to the international markets.

The UN’s Global Reporting Initiative shows the Cambodia rice sector has faced significant sustainability challenges of decreasing returns for small-scale producers, inadequate uptake of responsible farming practices and smallholder engagement models amid calls for increasing organic production.