November- December 2007

Who's who and who owns what in Cambodia offshore oil


Company Name
Percentage


Block A

Chevron
55.00

Partner Mitsui Oil Exploration Co., Ltd (Moeco)
30.00

GS Caltex Corp.
15.00




Block B

Singapore Petroleum Co.
33.30

Malaysia's Resourceful Petroleum
33.30

Thailand's PTTEP Int'l
33.30




Block C

Polytec, Hong Kong
100.00




Block D

China's Zhen Rong Cambodia Energy Co. (?)
52.00

Petrotech Holdings of China
48.00




Block E



Indonesia's Medco Int'l Petroleum Ltd.
41.25
Kuwait Energy Co. KSCC
20.66
JHL Pretroleum Ltd.
4.13
Sweden's Lundin Petroleum
34.00


Block F

Chinese National Offshore Oil Co. (CNOOC)
100.00

Source: Phnom Penh Post, Nov. 30-Dec. 13, 2007


QSR sees positive response to its KFC business in Cambodia Sunday, December 2nd, 2007 QSR Brands Bhd chairman Tan Sri Muhammad Ali Hashim yesterday expressed confidence over the success of the group’s latest overseas venture - two Kentucky Fried Chicken outlets in Phnom Penh, the wealthiest and most populous city in Cambodia.Work on the new “finger lickin’ good chicken” outlets is in the final stages to meet the year-end opening target and will open two more outlets in Cambodia, in Siem Reap and Sihanoukville, some time next year.Through its 45.9 percent equity stake in associate company KFC Holdings (Malaysia) Bhd, QSR operates over 470 KFC restaurants in Malaysia, Singapore and Brunei.
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National Budget to rise by $300 million next year
November 30, 2007
The National Assembly will debate a draft National Budget Law for 2008 that provides for funding of $1.5 billion, an increase of $300 million from this year's $1.2 billion budget. Cheam Yeap, chairman of Finance and Banking commission of the National Assembly, said the draft budget lowers spending on police and defense by reducing the budgets of the Ministry of Interior and Ministry of Defense by 4%.The actual budgets for each ministry are not released until the debate is held in December.The new budget adds the Ministry of Women's Affairs and Water Resources and Meteorology to those ministries considered to be high priority spending areas. The existing four high priority spending areas are Agriculture, Rural Development, Health and Education.

Cambodia Ranks Fifth In Garment Exports: Institute
Nov 30 2007
Cambodia is emerging as one of the world’s largest garment and textile exporters after China, Bangladesh, Indonesia and Viet Nam, according to the Economic Institute of Cambodia.The institute said Cambodia’s export earnings in garments and textiles are estimated to increase by 12 per cent in 2007 and 2008, compared with the figure in 2006.The sector is also expected to inject more than US$3 billion to Cambodia annual national budget, against its US$2.6 billion contribution two years ago.One of many reasons attributed to a success of Cambodia's garment and textile sector is that the country has a large workforce with reasonable costs, Cambodian Trade Minister Cham Prasith said.

The sector has created over 337,000 jobs for locals.
Cambodia promises US that adoption law is inching forward Thu, 29 Nov 2007 Phnom Penh - Cambodia's long-awaited new legislation on inter-country adoption was yet to be drafted but was still expected to be passed by the end of next year, said Secretary of State for the Foreign Ministry Long Visalo made the promise to US Assistant Secretary of State for Consular Affairs Maura Harty Wednesday, Khmer-language daily Koh Santepheap reported.He said most importantly the law must be in line with other international and individual nations' legislation and ensure "the reasons behind the adoptions are beneficial to the children and not just the individual who comes to take them."The US announced an immediate suspension of the processing of adoptions from Cambodia in December 2001 citing fraud and a lack of legal framework to ensure the children were protected. Other countries, including France, Canada and Australia, quickly followed.In June 2004, a US court convicted one of Cambodia's most prominent international adoption agents, Lauryn Galindo, and her sister Lynn Devin on a range of charges including falsely representing some of their adoption candidates as orphans.Since then the US and others have accused the Cambodian government of dragging its feet on drawing up effective adoption legislation and warned the adoption moratorium will remain in place until it is passed.

EC helps Cambodia implement development projects [with $33.3 million]
2007/11/29
The European Commission (EC) has pledged to grant a non-refundable aid of 23.1 million euro (roughly 33.3 million USD) for socio-economic development projects in Cambodia.An agreement on the aid package was signed on November 28 by Cambodian Minister of Economy and Finance Keat Chhon and EC’s representative Rafael Dochao Moreno.Under the agreement, the sum will be used to socio-economic development programmes in the 2006-2010 period, especially those in poverty reduction.Over the past few years, these projects have been received financial support from international organisations, among them were 15 million USD from the World Bank and 1 billion Japanese Yen from the Japanese Government, Cambodia’s Ministry of Economy and Finance said.

Cambodia, VN To Simplify Mekong Shipping
November 29, 2007
An agreement is being negotiated between Cambodia and Vietnam that will cut down the number of Mekong River checkpoints, through which cargo ships must pass, in order to facilitate the speedy arrival of goods to the Phnom Penh port, officials said.
There are currently four checkpoints on the Mekong—two in Vietnam, two in Cambodia—at which cargo ships need to be processed, it has taken ships up to two weeks in the past just to navigate through the nautical bureaucracy.
In the would-be agreement, there will be only two checkpoints, one at the border and another at Phnom Penh port.
The agreement stands to benefit other countries that use the Mekong for commerce—like Singapore and many European countries—and another meeting to discuss the matter is due to held in Ho Chi Minh City in January.
An intergovernmental body created by the four countries that share the Lower Mekong Basin—Cambodia, Vietnam, Laos and Thailand, the Mekong River Commission is coordinating the negotiations.
Through the MRC, the Belgian government has put about $1 million into establishing 56 buoys along the roughly 100-km stretch of the Mekong from the Cambodia-Vietnam border to Phnom Penh port, which will not only make navigation safer, but will also allow for economic night travel for ships.
Once drafted, the agreement will need approval from the National Assembly.

French company plans to operate tram railway in Cambodia
Nov. 26
A French firm Alstom has said it plans to operate trams in Phnom Penh, the Cambodian capital, and Siem Reap to help reduce the number of traffic jams and ease air pollution, local media reported Monday.
According to the plan, a railway to be called Tranway will connect the outskirts of Phnom Penh to its downtown, from Phnom Penh International Airport to the center.Phnom Penh governor Kep Chuktema offered his support to the plan, saying that he hopes it will help reduce traffic jams in the city just as the number vehicles on the roads is markedly increasing.


Road linking Prey Veng and Dong Thap in VN to be built
MONDAY, NOVEMBER 26, 2007

The People’s Committee of Dong Thap Province has approved construction of a road from Dinh Ba in the Mekong Delta province’s Tan Hong District to the Trans-Asia highway section in Prey Veng in Cambodia. This 28.5-km-long, 9-meter-wide road section needs investment capital of VND71.5 billion (nearly US$4.5 million), Tuoi Tre reports.


Cambodia rice exported to Mekong Delta
MONDAY, NOVEMBER 26, 2007
Every day, some 1,500-2,000 tons of Cambodian-grown rice is exported through border gates to An Giang and Dong Thap in the Mekong Delta region. The price of Cambodian rice ranges from VND2,900 to VND3,600 a kilo. (~$0.18 to $0.22)


Gaps remain in Asian Highway
Saturday November 24, 2007

Building and upgrading the incomplete 10,000 kilometres of the Asian Highway will require private sector involvement, the UN Economic and Social Commission for Asia and the Pacific (Escap) has concluded. The highway, which will link most of Asia with Europe, incorporates 55 routes within the boundaries of the 32 member countries of the Intergovernmental Agreement on the Asian Highway Network.

An Escap study in 2005 concluded about US$18 billion would be needed to complete the unfinished 9% of the route, but the forum estimated the actual figure may be less as many countries were doing the work themselves. Critical links that still needed concrete pledges were in Bangladesh, especially for a 515km stretch estimated to cost $1 billion, the forum heard.
Most of the upgrading efforts are needed in Afghanistan, Bangladesh, China, India, Kazakhstan, Kyrgyzstan, the Russian Federation and Tajikistan. All sections of the Asian Highway in 13 countries meet the minimum standards set by the agreement.

Those countries are Armenia, Azerbaijan, Cambodia, Georgia, Iran, Japan, Malaysia, Nepal, South Korea, Singapore, Thailand, Turkey and Uzbekistan. In Thailand, about 350km of the Asian Highway has been upgraded to eight lanes from four, mainly the routes from Bangkok to Chiang Rai and from Bangkok to Hat Yai.


Cambodia seeks $3bn investments in power plants
Saturday November 24, 2007
Cambodia is seeking $3 billion of investments to build power plants to boost generating capacity by 2,000 megawatts from 300 megawatts by 2017.

The government is in discussions with Chinese investors to build two hydropower plants with a combined capacity of 700 megawatts in the northwest province of Pursat and a group of Vietnamese investors plans to build hydropower plants with capacity of 400 megawatts in the northeast province of Rattankiri province.

Cambodia will also open bids for gas-fired power plants which will use natural gas from its onshore and offshore reserves._
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China Eastern Airlines opens new route to Phnom Penh
Nov. 22 -- China Eastern Airlines, one of the country's largest carriers, has opened a new route from the southwestern city of Kunming to Phnom Penh, Cambodia, a company spokeswoman said on Thursday.Since early November, three regular flights per week have flown to the southeast Asian nation's capital, and a CRJ-200 with a capacity of 50 passengers has been used for the new air service, said Wang Qian, a spokeswoman for the company's Yunnan branch in southwest China's Yunnan Province.

Flights take off from Kunming, capital of Yunnan Province, at 7:15 a.m. on Wednesdays, Fridays and Sundays, and arrive in Phnom Penh at 10:40 a.m. local time, she said.Return flights leave Phnom Penh at 11:30 a.m. local time the same day, she said.The flights make a stopover in the southern Chinese city of Nanning for 40 minutes.­­­­­­­­­__________________________________________________________________________________________
Gov’t Announces Venture for National Airline
At a signing ceremony Friday, Cabinet Minister Sok An and two Indonesian firms announced the creation of a national flag air carrier, the nation’s first since the Oct 2001 demise of Royal Air Cambodge.
A name and routes for the new airline, which is expected to begin operations within six months, have not yet been chosen, they said.
Speaking at the Council of Ministers, Sok An told reporters that a memorandum of understanding signed with the conglomerate Rajawali Group and PT Ancora International did not require the government to provide investment capital.
“If the company loses profit, the government won’t lose with it,” he said. “The companies will spend all capital investment and will be responsible for any losses in the case the airline fails.”
Sok An said the agreement gave the government at 51 percent stake in the joint venture, a 30-percent share of any profits and the right to appoint the chairman of the board.
Rajawali Group CEO Peter Sondakh, ranked Indonesia’s 40th richest man by Forbes magazine in 2006, said he could not yet disclose the amount of his company’s investment.
Also last week, an international airline launched its new route to Cambodia. Societe Concessionnaire des Aeroports—which manages the country’s three largest airports—announced that Japan Airline’s inaugural chartered flight had arrived Nov 20 at Siem Reap International Airport.
SCA spokesman Khek Norinda explained Friday that while Finnair and Chinese airline Shenzhen Air were also in talks with government officials over beginning service to Cambodia, they had not yet chosen which airport to serve. __________________________________________________________
Iran Ready to Aid Cambodia with Development
2007-11-19
Iran's Ambassador to Cambodia Seyed Javad Ghavam Shahidi voiced Tehran's preparedness to assist Phnom Penh in developing and renovating the country, in oil, gas and petrochemical sectors in particular.The diplomat also stated Tehran's readiness to cooperate with Cambodia through exporting technical and engineering services to that country.King Norodom Sihamoni further reminisced about his joyful visit to Tehran, and praised Iranian President Mahmoud Ahmadinejad as a powerful leader who has brought the Asian continent into a state of equilibrium.

Not enough oil troubles Cambodia's waters
Nov 20, 2007 By Andrew SymonAsia Times (Hong Kong)
PHNOM PENH - Could Cambodia's much-touted energy potential, which the World Bank and others had earlier estimated in total at 2 billion barrels of oil and 10 trillion cubic feet of natural gas, become a bust before it ever boomed? Expectations of an energy resource bounty have now suddenly dampened as top Cambodian officials strike a more cautionary tone.A senior Cambodian energy official last December publicly estimated that the 6,278-square-kilometer Block A that US energy giant Chevron is now drilling could contain as much as 700 million barrels of oil, or nearly twice the earlier 400-million-barrel estimate. Government officials had estimated in January that they hoped to ramp up production by as early as 2009, three to seven years earlier than the World Bank projected as possible. Marking a notable departure from that optimism, this month Prime Minister Hun Sen told a major business conference in Phnom Penh that the "speculation is highly premature". And despite the over 600 mostly foreign business delegates in attendance at the Cambodia Investment, Trade and Infrastructure conference, Chevron declined to take part in panel discussions on Cambodia's natural resources. The company had previously said it would publicly disclose its findings and estimates in April or May.Hun Sen's comments and Chevron's low profile have led to downward revisions in some concerned quarters of the government's earlier bonanza estimates. Ever since Chevron reported promising energy finds in Cambodian waters in December 2004, there has been widespread hope that energy exports could transform one of Southeast Asia's poorest countries into a major regional oil-and-gas producer.According to a joint study last year by the United Nations Development Program (UNDP) and Harvard University, depending on the size and accessibility of the proven reserves, energy-export revenues could double Cambodia's current gross domestic product. Although Cambodian officials have at times freely bandied around buoyant potential energy reserve figures, Chevron itself has shied from publicly stating hard numbers.Yet speculative hopes and rising global prices have spurred ramped up multinational exploration activities in Cambodia. Since Chevron's supposed find, other international energy concerns, led by Thailand's PTT Exploration and Production, Indonesia's Medco and China's China National Offshore Oil Corp, have taken up new exploration positions in Cambodian waters.The news has also galvanized new interest in the potential of Cambodia's 27,000 square kilometer Overlapping Claims Area with Thailand, which lies untapped due to a long-running dispute between the two governments. The two sides are expected to resume talks next year after Thailand elects a new government in December.All of this has occurred despite the fact that no petroleum project in Cambodia has yet to reach an advanced development stage - let alone achieve actual production. As far as the much-anticipated discoveries in offshore Block A are concerned, Chevron has said the deposits are subject to difficult geology and that further appraisal is required before it can estimate how much might be extracted.Indeed, there are even industry rumors that Chevron may instead move to sell its operating interest in the block, as the deposits may not be as large as the company requires to replace its proven reserves. If so, it could dampen broad foreign investor sentiment in the country, which has recently experienced a boom as foreign capital pumps up property prices and brings the moribund service sector to life. It's unclear how much of the upbeat sentiment is contingent on Chevron's oil-and-gas find, but if the company were to come up dry at Block A it would undoubtedly hurt investor interest in the country.Foreign investor perception is now crucial to Hun Sen's government, which is reaping the political benefits of an unprecedented post-war economic boom. Now some energy industry analysts are starting to wonder whether government officials disingenuously pumped up expectations about Chevron's find to spur investor interest in other less promising exploration blocks.There was a measure of surprise among energy industry analysts when the Block A estimates were first touted. Earlier exploration in those same offshore Cambodian waters by Britain's Enterprise Oil, Premier Oil and Japan's Idemitsu in the mid-1990s found only moderate indications of oil and gas. All three companies decided that the find was not significant enough to warrant investment in further drilling and development.Windfall downsidesMeanwhile, there are lingering questions about the governance quality of the administration of Hun Sen, which ranks towards the tail end of international corruption rankings. Watchdog groups have already expressed their concerns that an energy windfall could be squandered by poor management and official corruption.Warnings have been made by a wide array of international development assistance agencies, including the World Bank, the UNDP, Oxfam and the International Monetary Fund, that if mismanaged the country could actually face economic and social harm from a fossil fuels boom. In a small economy, rapid and large energy exports risk high rates of inflation and a fast-appreciating currency, which in turn would threaten the international competitiveness of the country's other export-oriented manufacturing industries, including garment exports.There are also fears of potential environmental damage, particularly as the government toys with the idea of awarding onshore petroleum exploration blocks in the Tonle Basin lake region, a crucial area of the greater Mekong eco-system on which millions of Cambodians depend for their nourishment and livelihoods. Judging by the rampant, often government-sanctioned logging industry, environmental and social concerns are often subordinated to economic gain in Cambodian extractive industries.Government officials say they are well aware of the challenges and pitfalls of natural resource-driven development. Deputy Prime Minister Sok An told the recent gathering of investors, "We have received many questions about what we are going to do with the [oil and gas] revenues as and when they come. My answer is that we have very much to do - rebuilding and developing our economy and enhancing the quality of the lives of our people."Testing such assertions will be the establishment of a new petroleum law, which is now being deliberated in Parliament and will likely give a firmer legislative and regulatory base for petroleum industry development. The national energy sector currently operates under fairly ad hoc regulations, first adopted in 1991. In 1998, the Cambodian National Petroleum Authority was established to act as the key government agency in managing development and operation of the industry, where upstream companies operated under a production sharing contract regime which is comparable with international standards.Now, apparently to subdue its critics, the government says it might join the Extractive Industries Transparency Initiative (EITI), a recently established international mechanism with a secretariat in Oslo, Norway, which brings governments and companies together to promote good governance over natural resource-generated revenues.First proposed in 2002 by British prime minister Tony Blair, the EITI features a coalition of governments, investors, companies and non-governmental organizations supported by multilateral and bilateral agencies such as the World Bank and the International Monetary Fund. Both corporate and government practices are monitored by the EITI and reforms are proposed for their consideration.More than 20 countries in Africa, South America and Central Asia, all with large petroleum or mining industries, have joined the EITI. However, there are currently no Asian members, apart from natural gas-rich Timor Leste, formerly known as East Timor. The EITI's member companies, meanwhile, represent some of the world's largest Western energy concerns, including the BG Group, Burren Energy, Chevron, ConocoPhillips, ExxonMobil, Petrobras, Shell, Statoil, Talisman Energy, Total and Woodside.BG Group, Chevron and ConocoPhillips all have oil-and-gas interests in Cambodia, as do many of the mining companies which have signed onto the initiative. And the government will nonetheless come under EITI principles and guidelines as part of their loan programs with the World Bank and other agencies - whether or not Cambodia's highly anticipated energy bonanza is eventually or ever realized.Andrew Symon is a Singapore-based journalist and analyst specializing in energy and mining. He may be reached at andrew.symon@yahoo.com.sg.

Monday, November 19, 2007
IMF cancels $82 mln of debt for Cambodia
PHNOM PENH, Nov. 19 (Xinhua) -- The International Monetary Fund (IMF) has canceled 82 million U.S. dollars of debt owed by Cambodia, a senior official said here Monday.The debt cancellation is for the National Bank of Cambodia, because "we have worked with good results and our achievements are great," said Keat Chhon, Minister of Finance and Economy, at a workshop on national budget preparation for 2008. IMF has the principle of deleting debt for the national banks of some countries like Cambodia, he said."IMF wants to encourage us to work better, so it omitted our debt," he added.Since the 1990s, Cambodia has borrowed money from IMF to strengthen its financial balance.Half budget of the kingdom used to be met by donor countries and international institutions like IMF.

Monday, November 19, 2007
Iran to cooperate with Cambodia in tourism
PHNOM PENH, Nov. 19 (Xinhua) -- Iran has disclosed it plans to cooperate with Cambodia in tourism, local media on Monday quoted officials as saying.Tourism Minister Thong Khon unveiled the plan following a recent official meeting with Iranian Ambassador to Cambodia Seyed Javad Ghavam Shahidi, reported Cambodian-language newspaper the Rasmei Kampuchea. "We both should organize promotional programs to make good cooperation between Cambodia and Iran in the tourism sector," Thong Khon said.Iran hopes to establish a direct flight from Tehran to Phnom Penh or Siem Reap province, as its planes already fly directly to Bangkok and destinations in Vietnam, he said.Thong Khon suggested that the promotion of tourism industry between the two countries should aim primarily at safe transportation to gain confidence from tourists or travelers.Altogether 287 Iranian tourists visited Cambodia over the first nine months of 2007, according to Cambodian Tourism Ministry's statistics.

Monday, November 19, 2007
Cambodia eyes stock market for capital
November 18, 2007By KER MUNTHITThe Associated PressPHNOM PENH, Cambodia
"I am afraid that many potential stock holders will be cheated by stock manipulation ... Big risk. They will be victims of manipulation" - Opposition leaders Sam Rainsy
Until recently, the buzzwords of hope for lifting Cambodia out of dire poverty were "offshore oil."Now come new ones -- "securities market" -- that the government hopes will draw international capital to this tiny country and help it expand the economic base beyond the clothing industry, which has been Cambodia's main moneymaker so far.Last month, senators passed a law on the issuance and trading of stocks and bonds in the latest move to prepare the country for establishing its first stock market by 2009.Finance Minister Keat Chhon says the country needs a stock market to diversify the way businesses raise money. So far, beyond international aid for development projects, most financing has come from banks.But he acknowledged that it will take some time for Cambodian entrepreneurs and the public to accept the idea of a stock market -- particularly the requirement that all companies' bookkeeping would be open to scrutiny."It is like entering exams with a strict standard. Some firms could be reluctant to be part of it," Keat Chhon said.Companies will not be allowed to sell shares if their accounting is not certified by independent auditors, he said.Neighboring Vietnam started its stock market in July 2000, and it has been a big success, both for companies and investors."There's always complaints made that capital is hard to get in Cambodia," said Bretton Sciaroni, an American lawyer running a law firm in the capital, Phnom Penh. "The banks are very liquid but it's all short-term money that the banks have, and it makes it difficult for long-term projects."For investors, the country's junk-level credit ratings suggest it is a risky bet because of its weak oversight and rampant corruption.The economy, while growing at more than 11 percent annually during the past three years, is small and largely driven by just one industry, textiles, which accounts for nearly 80 percent of exports. The other key industries are tourism, construction and agriculture, and telecommunications is a promising area."The very weak state of governance -- in terms of overall effectiveness of government operations, regulatory quality and rule of law -- adversely affect Cambodia's credit fundamentals," Thomas Byrne, a vice president of Moody's Investors Service, said in a statement in May.Until Cambodia is able to broaden its economic base, "it will remain vulnerable to domestic and external shocks," he said.Moody's gives the country's government bonds a credit rating of "B," five rungs below investment grade. Standard & Poor's put Cambodia at "B+," four levels below investment grade.U.S. energy giant Chevron Corp.'s discovery of offshore oil in the Cambodian seabed last year has triggered hope that the country could benefit from that income. But it is not clear yet if the oil will be commercially viable or when it can be tapped.Cambodia needs to move beyond relying only on international aid and banks loans, Prime Minister Hun Sen said in early September at the launching of the stock exchange plan.Those two sources are "still not sufficient to fulfill enormous capital demand of the Cambodian capital-hungry economy," he said, adding that banks loans last year totaled about $500 million.The creation of a stock market would likely boost foreign direct investment, which last year totaled just $483 million, compared with $2.3 billion and $9.7 billion in neighboring Vietnam and Thailand respectively, according to the U.N.'s World Investment Report 2007.Local business executives appear to be positive -- and perhaps somewhat cautious -- about setting up a local bourse."Having a stock exchange is a good idea. Companies and the public can benefit by taking part in it," said Kith Meng, president of Royal Group, which includes Mobitel, the country's biggest mobile phone service provider. "But I will have to see first."To be listed on the exchange, companies will be required to submit their balance sheets for auditing and stamping by certified professional accountants, government officials say.In Channy, the CEO of Acleda Bank PLC, a leading commercial bank in the country, says his company has already been making its financial reports public on its Web site for some time.That's "our bank's obligation to let our partners and clients know about our situation," he said. "We have no fear to participate in a stock market."Last month, the government began requiring some 400 enterprises to submit their financial statements to independent auditors by December -- one of a series of steps the government says is necessary for a successful opening of a stock market.To develop an exchange, Cambodia has turned for aid to South Korea, which has provided $1.8 million to set up an exchange and train personnel.But Sam Rainsy, the country's former finance minister and main opposition leader, warns that most Cambodian companies have questionable business practices."There are few companies that meet international standards. But the rest are rather dubious if not controversial companies, which are here doing business not in a transparent manner but rather (through) friends and cronies of political establishment," he said."I am afraid that many potential stock holders will be cheated by stock manipulation" such as insider trading, said Sam Rainsy, the president of Sam Rainsy Party. "Big risk. They will be victims of manipulation."

Monday, November 19, 2007
Hun Sen: 2007 economic growth expected to be at 9.5%
Sunday November 18Cambodia PM sees 2007 growth at 9.5 pct
SINGAPORE, Nov 18 (Reuters) - The Cambodian economy is set to grow 9.5 percent in 2007, prime minister Hun Sen said at a business summit in Singapore."The preliminary estimation for growth in 2007 will be 9.5 percent while inflation has been kept at a low level," Hun Sen said in a speech. This is in line with a forecast by the International Monetary Fund, which sees Cambodia's economy growing 7.75 percent next year on the back of healthy agriculture, tourism, construction and garment sectors.Growth has slowed from 10.8 percent in 2006, 13.5 percent in 2005 and 10.3 percent in 2004, Hun Sen said at the Association of South East Asian Nations (ASEAN) business summit.ASEAN plans to sign a charter next week in the first step towards free trade and economic integration in Southeast Asia by 2015.Hun Sen said Cambodia wants growth to be led by the private sector and said the government will ensure a favourable business climate.Steps taken by the government will include the automation of customs and the creation of special economic zones to facilitate trade and investment."Cambodia has endowment and strong potential in agriculture and agro-industry, labour-intensive industry, processing, tourism, mining and some sub-sectors of the manufacturing and the service sectors," he said."At the same time, the promising future from the commercialisation of oil, gas and other mineral resources has opened up new economic opportunity and hope for Cambodia."(Reporting by Geert De Clercq, writing by Kevin Lim, editing by Neil Chatterjee)
Thursday, November 15, 2007
World Bank: No double digit growth in Cambodia in 2008; Will 2008 be King Sihamoni's lackluster feng shui power year?
World Bank: Malaysia's GDP To Grow 5.9 Percent In 2008
Hun Sen declared that people all over the country are celebrating the 3rd anniversary of the ascent to the throne by King Norodom Sihamoni, and they are also celebrating the double digit economic progress in the past consecutive 3 years in Cambodia. Hun Sen said that the king brings “good feng shui” to the nation.Cambodia is likely to achieve 8.0 percent growth in 2008
- World Bank
BANGKOK, Nov 15 (Bernama) -- The World Bank says the outlook for the Malaysian economy in 2008 is more positive with a 5.9 percent growth rate but feels the prospects also depend largely on how significantly economic conditions in the United States worsen in the coming months.It says the sub-prime crisis appears to have had a limited effect on the Malaysian financial sector so far, although its impact on export performance could be more significant over time.The World Bank's latest East Asia & Pacific Update shows that Malaysia's real GDP (gross domestic product) growth in 2007 is expected to moderate to 5.7 percent, after growing 5.9 percent in 2006."Although export performance has so far been weak in 2007, domestic demand should help to sustain growth. Strong private consumption is likely, given favourable consumer sentiments, low inflation, high commodity prices, stable interest rates and a recent pay hike for government officials," World Bank says.Similarly, an expansionary fiscal policy, following the Budget 2008 announced in September, should also strengthen growth, it adds.The Update, a six-monthly report on the region's economic and social health, finds that growth in emerging East Asia is expected to exceed eight percent in 2007 for a second year in a row and to moderate only slightly in 2008, despite growing concerns about the U.S. sub-prime crisis and increasing global oil prices.Among the East Asian countries, China is expected to grow by 11.3 percent in 2007 before slowing modestly to 10.8 percent in 2008 while Vietnam is to grow by 8.2 percent next year compared to 8.3 percent this year.Cambodia is likely to achieve 8.0 percent growth in 2008, Laos 7.9 percent, Indonesia 6.4 percent, the Philippines 6.2 percent and Thailand 4.6 percent.Although East Asian exports to the US have already slowed, more buoyant investment and consumption in China and other countries have allowed growth to remain strong and even pick up this year, says the World Bank.The report finds that for the first time, the number of poor people living below US$2 a day in East Asia has fallen below 500 million, down from one billion in 1990.The Update cautions that new highs for oil prices will test the solidity of the East Asian and global economic expansions in 2008, stating that an average oil price of $90 in 2008 will be associated with an income loss in East Asia of a little over one percent of GDP.The report's lead author, Milan Brahmbhatt, says: "The impact of the US sub-prime crisis and the renewed surge in oil prices have clearly increased downside risks."Nevertheless we expect the stronger growth momentum in the region to carry through 2008."The Update also says that although China has become a major export market for the rest of East Asia, economies need to remain focused on finding new ways to meet China's ever changing and highly competitive market."The new challenge for China's East Asian neighbours will be in making the transition from supplying inputs for China's exports to also supplying its domestic market, something that may require significantly different research, production, branding and marketing skills and channels," Brahmbhatt says.

Monday, November 19, 2007
Trade ministers call for speed-up integration of ASEAN
SINGAPORE, Nov. 18 (Xinhua) -- ASEAN member countries must step up the pace for integration, trade ministers from the Association of Southeast Asian Nations (ASEAN) members said here on Sunday.Leaders of the Association of Southeast Asian Nations (ASEAN), meeting this week for the group's 13th summit, are due to sign a blueprint for creating a vast single market and production base covering about 570 million people by 2015. "Either ASEAN gets into the act or integration will bypass ASEAN, and integration will involve new players like China and India and other emerging economies," Singapore Trade and Industry Minister Lim Hng Kiang was quoted by Channel News Asia as saying."In a way we are setting up the framework, in a way we are also playing catch-up," he told a gathering of business leaders on the summit sidelines.The ministers said that tangible steps to break down protectionist walls and embrace integrated policies are in the works, whereas the economic disparity between ASEAN member countries came up as they discussed the challenges to ASEAN economic integration.Commerce minister of Cambodia Cham Prasidh considered integration as an opportunity for less developed countries to match pace."As long as we are part of this dynamic block, we are sure that although we are in the last wagon, we are still running at the same speed as the train. But if we are not hooked onto the locomotive, it's slow death. That's why it's very important for Cambodia to do it," he said.Indonesian Trade Minister Mari Pangestu acknowledged that making the free trade zone a reality would not be an easy task, but said the region had to persevere."We really have to see this in a very, very positive way," she said. "We cannot stop the clock - we need to make ourselves more competitive."The two-day ASEAN Business and Investment summit ended in Singapore on Sunday. The summit is a key meeting between the private and public sectors in the region to identify measures to facilitate and promote ASEAN economic initiatives.Leaders of 10 ASEAN countries -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- are to take part in the 13th ASEAN summit and related meetings from Nov. 18-21 in Singapore.They are expected to sign the group's charter during the summit, which aims to build a solid institutional framework that will facilitate a more focused and coordinated agenda.

Friday, November 16, 2007
ASEAN single market faces obstacles: analysts
SINGAPORE (AFP) — Southeast Asia's plans for a unified market by 2015 hinge on painful reforms that could be derailed by red tape, vested interests and foot-dragging, observers say.Association of Southeast Asian Nations (ASEAN) leaders holding their annual summit in Singapore from Sunday are expected to approve a blueprint for an ASEAN economic community embracing more than half a billion people."Political will is the key. If countries don't have the political will to push through with these reforms, this will remain just a dream," said a Southeast Asian trade official, talking on condition of anonymity."Can governments, for example, resist pressure from domestic interests against allowing foreign airlines to fly domestic routes?"Analysts have lauded ASEAN for moving forward by five years its timetable for economic integration, from 2020 to 2015.But they said the 40-year-old organisation faces a formidable task in establishing a unified market and production base that would help it compete against Asian giants China and India.Some of the reforms could come up against entrenched domestic business interests and face resistance from officials in departments such as customs, a major source of corruption in some countries, they said.Complicating the situation are disparities between the group's more developed members Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, and lower-income states Cambodia, Laos, Myanmar and Vietnam.As a first step to integration, ASEAN has marked 12 priority sectors for the elimination of tariffs and non-tariff barriers by 2010.These are agricultural, rubber and wood-based products along with air travel, Internet linkages, automotives, electronics, fisheries, healthcare, logistics, textiles and apparel, and tourism.ASEAN also plans to liberalise the services sector, open formerly-closed sectors to foreign investors, harmonise and streamline customs procedures, and ease the movement of professionals.ASEAN transport ministers agreed in November that national airlines can fly between capital cities by the end of 2008 under an open-skies pact that could be expanded later to include secondary cities.Mike Barclay, regional vice president of the industry trade body, the International Air Transport Association (IATA), said however that ASEAN still had a "long way to go" in freeing up aviation."We don't see any relaxation of foreign ownership controls... we don't see the opportunity for airlines to operate domestic sectors in another ASEAN country," Barclay told an aviation conference in Singapore last month.Philippine Trade Secretary Peter Favila said in August there could be "unintended pockets of bureaucratic red tape" that could slow the blueprint's implementation, but voiced confidence this could be overcome.The Asian Development Bank (ADB) Institute identified in a recent report the huge scale of some of the reforms ASEAN states must undertake."A shift to knowledge-based economy is crucial for Malaysia and Thailand and institutional and governance reforms and restoration of good investment climate should be priorities for Indonesia and the Philippines," it said.Cambodia, Laos, Myanmar and Vietnam need to build infrastructure like transportation and telecommunication facilities. They also need legal, judicial and governance systems and a skilled work force, the ADB's research arm said."These countries are still not ready for the ASEAN economic community," said analyst Hiro Katsumata of the S. Rajaratnam School of International Studies in Singapore.ASEAN's six wealthier states could form the core of an economic community by 2015, with the poorer members joining later, Katsumata suggested.The ADB Institute paper highlighted the wide disparity within ASEAN in terms of market openness and urged financial and technical help for ASEAN's poorer members.For example, ASEAN's average tariff import rate is 9.53 percent, ranging from zero tariffs in Singapore to 17.92 percent in Vietnam.It takes an average 32 days to import an item in ASEAN, varying from three days in Singapore to 45 days in Cambodia and 78 days in Laos.An average 64 days are required to start a business in ASEAN, ranging from six days in Singapore to 163 days in Laos and 97 days in Indonesia."The greatest challenge is to narrow the development gaps within ASEAN," the paper said.


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Friday, November 16, 2007
Standing room only at investors forum [-Hun Sen will never privatize fat cat department such as customs etc...]
By Susan PostlewaitePhnom Penh Post, Issue 16 / 23, November 16 - 29, 2007
Representatives of foreign companies who registered to attend the 5th Business Roundtable heard much about the new Cambodia - the one that's stable, business friendly, endowed with natural riches and anxious to please.Nearly 600 people, about half from abroad, attended the Nov 7-8 conference sponsored by businesses and development organizations to promote trade and infrastructure investment.With a slogan of "the right place, the right time, for the right investment" all the top ministers in Cambodia dealing with money were on hand. Prime Minister Hun Sen, while encouraging foreign investment, warned that the government is not going to release control of many types of industries that often come up for privatization elsewhere."You can do it in your country, not in Cambodia," he said, referring to the customs service."We will not privatize the Customs House," said Hun Sen. "Why not sell the rights to the prime minister? Then the army, then the police." He complained that an American consultant was paid $15,000 a month to advise Cambodia on re-making customs and it was recorded as American aid.Briefly mentioning the new oil exploration off shore from Sihanoukville, Hun Sen confirmed rumors in announcing that "a discussion between investment partners" investment for a 2.5 million ton capacity oil refinery in Sihanoukville by 2010 is underway. He did not identify the investment partners.An oil refinery - with or without state ownership - is a controversial topic. "There's no doubt that the government wants an oil refinery but it's a very bad move," said Oxfam America's extractive industries program officer Warwick Browne. "Exporting crude to Singapore is a better option."Hun Sen also said he wants a national airline to succeed defunct Royal Air Cambodge, but not a privatized carrier. It was unclear whether a joint venture investment with private investors is on the table.Senior government officials described other projects in need of funding, particularly power generation plants, road building, railroad concessions and agro-industry.According to Cambodia Minister of Commerce Cham Prasidh, Cambodia's major handicap in getting foreign investment is the high price of electricity, which at 20 to 25 cents per kilowatt hour is two or three times as high as neighboring Vietnam and Thailand.He said the government is considering special economic zones on the border of Thailand and Vietnam where companies could buy cheaper electricity and still do business on Cambodian soil.Mining of bauxite, gold, iron and gems was also touted as a good opportunity for foreign investment.Meanwhile, deals were working on the sidelines.New investment An official of Raptor Energy said he is hoping to soon sign a deal for a 14-hectare concession in Kampot for a palm oil plantation. "We're aiming over a period of five years to build out up to 50,000 hectares of oil palm plantations," said executive chairman Robert Brough.He said Raptor Energy, founded as a bio-energy firm, will decide what to produce when the first crop comes in after three years. "We'll be making the decision then as to whether to use if in the food sector on [in] energy." He said they bought an existing concession and will invest a total of $55 million in the venture.Officials of Leopard Group, one of the conference sponsors, said they are raising investment for a $100 million private equity fund called the Leopard Cambodia Fund that would invest in select businesses in Cambodia. Peter Brimble, of Leopard Group, said there were 30 to 40 investment bankers at the conference and "most are really serious about investing in Cambodia.""The stock market is going to play a very important role in the development of Cambodia," said Brimble. He said once the electricity problem is solved, the garment sector would resume its growth.James Machin, an environmental scientist with Melbourne based Earth Systems, was looking around for opportunities in environmental consulting possibilities related to the new drilling and mining. "Which comes first the chicken or the egg? Should we get a project first, or set up first and then get a project?" he said.Scouting for businessEarth Systems already operates in Laos, where Australia mining company Oxiana is exploring for copper and gold. Oxiana is also exploring in Mondulkiri. "With all of these projects, we're assessing the demand for environmental services to international standards," he said.A representative of GE Security came to analyze the demand for advanced security systems such as airport screening. "But I don't know if they are ready for this yet," says Paul Sun, sales director for Asia based in Singapore.Local entrepreneurs were scouting business. Kevin Britten, managing director of The Secretary, an office services firm in Phnom Penh, said paid attendance at the conference was impressive, and he had appointments with some of the visitors. "We work with startups. It can be a tough town to come into," he explained.Finance Minister Keat Chhon said new investment is anticipated in the banking and insurance sectors. Four foreign insurance companies are doing a feasibility study on whether to establish a life insurance company in Cambodia and the government is looking to develop a "micro-health insurance" company for small buyers, he said.One potent message came from the chairman of the Garment Manufacturers Association, Van Sou Ieng. "Cambodia is moving. Land, plenty of space, few licenses to apply for. Come now or it will be too late," Ieng said.Corruption questionBut also on the sidelines, some of the business people wanted to know about that old Cambodia? What's caused the big change? And what about the corruption issue. Cambodia continues to rank among the highest in the world on the Transparency International's list of the countries perceived to have the most corruption. Should foreign investors care?The question never reached open discussion.. "Business just buys into it," said one western banker, referring to the outlook for poverty reduction and better transparency in government operations described by Deputy Prime Minister Sok An in his speech.Sok An said that the government plans to spend the revenues the government receives from oil production - estimated at $174 million beginning in 2011 - on "clean water and education".The claim was hard to believe. "But there are 600 people here. What does that tell you," the banker said. "Obviously it is a turning point."

Thursday, November 15, 2007
Korean company wins mining rights in northern Cambodia
November 15, 2007 Korea.net (South Korea)
A Korean resources developer has won exclusive mining rights in northern Cambodia, an area that could contain large quantities of copper, zinc and iron ore, the government said on Thursday (Nov. 15).The Ministry of Commerce, Industry and Energy said the eight mining zones secured by Kenertec Co. cover 1,520 square kilometers -- twice the size of Seoul. It said preliminary surface surveys showed potentially large metallic deposits.In 2002, China carried out a detailed survey of an area near Kenertec's new claims, and discovered about 600 million tons of iron ore underground.The ministry said the company plans to conduct more detailed seismic studies starting next year to discern the size of the mineral deposits. Full-scale development of the region will take place after a complete survey is conducted."The area has been relatively unexplored in the past because it was a military-controlled zone and off-limits to civilians," said a government official. He said with the military taking steps to allow development, the region is attracting interest from Chinese and Vietnamese companies.Seoul has been encouraging companies to secure foreign resources in the past few years to cope with skyrocketing raw material and energy prices.

Wednesday, 14 November 2007Cambodia capital is ‘Pearl of Asia’
Cambodia and its economy are set to go from strength to strength… In light of its freshly found allure amidst the international property investment market, Cambodia’s capital growth is expected to reach 15-20%, with the capital city of Phnom Penh offering 1-2 bedroom apartments with a 2 year guaranteed 10% rental return.So what does the surrounding Cambodian capital have to offer? Once referred to as The Pearl of Asia, this architecturally awe inspiring city is today’s wealthiest and most populous Cambodian city, giving it a charged and vibrant climate that’s simply wonderful.Its busy inhabitants are peaceful folk of which some are Buddhists, who along with many tourists frequent the many breathtaking attractions, the most popular being the Royal Palace.Once in a lifetime experiencePhnom Penh’s main shopping centre is the Phsar Thom Thmei market place which too attracts visitors, each eager to behold its vast array of treasures. From plant life to antique currency and opulent foods to fancy fabrics, it’s sure to be found on the stalls of this enigmatic, once in a lifetime shopping experience.Serviced by the usual taxis and tuk-tuks, Phnom Penh also boasts road, river and rail transport as well as its very own airport, notably Cambodia’s largest. Phnom Penh is both accessible and accommodating for any international investment making traveller, enabling simple return visits to and from its shores.
Thursday, November 15, 2007
Investments called for nine border gate projects [near Kirivong, Takeo province]
15/11/2007Vietnam Agency (Hanoi)
The southwestern province of An Giang is calling for investment in nine key projects focusing on international and national border gates for the period up to the decade-end.They include a 490 billion VND project on the development of the Tinh Bien border gate economy, an industrial park also to be built in Tinh Bien district with a designed investment of 330 billion VND, an international exhibition-fair centre on 5 ha of land at the Tinh Bien international border gate and an investment of 500 billion VND for the development of the Vinh Xuong national border gate economy. Other projects are for the development of the Khanh Binh national border gate economy with an estimated investment of 320 billion VND, the construction of a whole-sale centre on 50 ha of land and a supermarket with investments estimated to total 55 billion VND and the construction of a farm produce market and a shopping centre on 9 ha of land.An Giang province boasts two international border gates, one national border gate and two sub-border gates leading to Cambodia .The province has exported products to 81 overseas markets with its seafood products alone now available in 63 markets abroad.An Giang is now home to 91 investment projects, representing a 7-fold increase over the same period last year, thanks to its streamlined licensing procedures.
Labels: An Giang, Border gate with VN, Economic projects, Motr Chrouk, Tinh Bien
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Japan companies plan to invest Acacia for export

Cambodian Council for the Development said that a group of Japanese investors planed to invest in acacia plantation for paper production.

The investment delegation led by Mr. Marume, chairman of World Link Japan; representative of Japanese Development Bank and Mitsui company, which all based in Tokyo had discussed with Cambodian government during their visit from 11th to 14th November.

The visit from Japanese investors will further strengthen and improve cooperation between Cambodia and Japan, particularly in the field of investment, after the two countries reached agreements on the promotion and protection of investments, the official added.
-------------------------------------------------------------------------------------------------Brief Investment Projects
National Airlines to be set up soon
Cambodian Prime Minister has pushed for setting up a national airline as soon as possible. So far, two private companies have been negotiating on this issue. (November 7th, 2007)
Australian and French-Belgium privatized Railways
Prime Minister said on November 7 said Railways have been privatized to two companies: one is Australian and another is French-Belgium Company.
3 Rubber plantations Privatized
3 state-owned rubber plantations have been privatized: Beng Ket, Memot, and Chamkar Andoung.

Two Cement Factories to produce 1 million tone per year
Cambodia will be able to produce cement on its own soon with a capacity of 1 million tones per year by two cement factories in Kampot. One has 80% done and the other is almost 50% completed.

Cambodia is to get large revenue from mineral resource

After BHP Billiton has received license to extract and found bauxite in 1,000 m2 in Mondulkiri province, Prime Minister Hun Sen said that there are about 300 million tone of iron mineral in Roveang district, Preah Vihea. If we produce 3 million tone a year, it would last for 100 years.
Cambodian Prime Minister said on November 7, 2007 that there are many mineral resources: Iron, Metal, Bauxite, gemstone, coal, gold…etc.

However, there has been some environment pollution in Rattana Kiri province as the result of Land erosion, road destruction, tree fall, and water resource. Villagers from 4 villages in Andong Meas district has complaint that their water resource has been polluted as the result of stone extraction.

The places for digging gemstone are: Laming, Kak, and Ke Chong commune of BoKeo district.

Cambodian oil refinery will start operation in 2010 after discussing with investment partners to set up an oil refinery which could produce about 2.5 million pear year in Sihanouk Ville. So far 27 well of gas has been found.


Gold Mines crack down in Preah Vihear
Koh Santepheap November 14, 2007


Preah Vihear: On the 27th October, Preah Vihear governor Preap Tan has ordered Mr. Va Savat, deputy chairman of The Department of Industry, Mines, and Energy to bring 18 people task force including village chief, commune chief, police, military, and Roveang District governor to stop gold extraction operation in Phnom AnLong in Pring village, Rotom commune and Phnom Dek village, Romany commune, Roveang district, located about 8 km from National Road 64 in Phnom Dek village.

Since the crack down information has been leaked to the operators to take out 30 machines before the arrival of the task force, only 2 made-in-China machines with capacity of 20 cc, and 3 strings of 3-metre pipe, 10 kilos of quicklime for mixing with acid, 30 litres of acid POLSOM, which will be poured into a reservoir of soil and to be liquidize rock and extract gold.

The chemical reactor reservoir of 6 m x 7 m of 1 meter height for five soil containers and 3 small reservoir as …as been destroyed.

25 damlung to 30 damlung ($950/damlung) has been extracted per day and for four months now.

“Phnom Anlong” mountain has been estimated to have gold in square area of 8 kilometers.
So far, DELCOM has received 99 years license from the government.

National Assembly approves the law for free trade zones
Tuesday, November 13, 2007
Everyday.com.khTranslated from Khmer by Socheata
On 12 November 2007,
the National Assembly (NA) debated and approved two draft laws: one for an agreement on the ASEAN-Korea free trade zone, and the other for an agreement for the ASEAN-China free trade zone.

SRP MP Sok Pheng proposed to the committee chairman who proposed one of these draft laws to clearly state the title of the law, such as the vaguely misnomer “ASEAN-Korea” because there are two Koreas.

However, Ky Lom Orng, chairwoman of the “public works and transportation, post and telecommunication, industry, mining, energy, commerce, land management, urban planning & construction” committee said that the title of the law is not confusing because the text of the draft law uses the word “Republic of Korea” to designate South Korea. Keat Chhon, the minister of finance and economy, said that after the approval of these two laws by the NA, they will become tools to put into practice commercial competitions with other countries which are partners of Cambodia.

Wednesday, November 14, 2007
ASEAN summit to promote nuclear energy, solar power
SINGAPORE, Nov 13, 2007 (AFP) —

Southeast Asian leaders will promote the use of civilian nuclear power, along with other alternative energy sources, when they meet in Singapore next week, a draft statement obtained Tuesday said.Leaders from the Association of Southeast Asian Nations (ASEAN) will also agree to establish a "regional nuclear safety regime" to ensure that plutonium, a key ingredient for making atomic weapons, does not fall into the wrong hands.

A draft of an ASEAN Declaration on Environmental Sustainability, obtained by AFP, said the leaders will agree "to take concrete measures to promote the use of renewable and alternative energy sources such as solar, hydro, wind, tide, biomass, biofuels and geothermal energy"They will also support "civilian nuclear power" for interested countries -- a move which environmental campaigners see as worrying.But the draft says ASEAN will ensure "safety and safeguards that are of current international standards and environmental sustainability".

Heads of state and government from ASEAN's member states Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam are to sign the document next Tuesday during their annual summit.

Host Singapore has said it wants climate change to be the focus of the summit, but the meeting is instead expected to be dominated by rogue ASEAN member Myanmar's deadly crackdown on pro-democracy protesters in September.

The document commits ASEAN states to implement environmentally sustainable practices, improve cooperation to fight trans-boundary pollution and to take action against illegal logging.

Weak law enforcement to control the use of fire for clearing agricultural land in ASEAN's biggest member, Indonesia, has been identified as a main cause of the haze that blankets wide swathes of the region each year.ASEAN leaders will also pledge to improve energy efficiency, reduce the loss of biodiversity in the region and halve the number of people without access to safe drinking water by 2010, according to the draft.

But the decision to promote civilian nuclear power has sparked criticisms from environmental activists.Indonesia, Thailand and Vietnam have announced plans to build nuclear power plants by 2020 in a bid to cut their dependence on crude oil and natural gas.

World oil prices topped 98 dollars a barrel earlier this month."If they are going nuclear, I think they are going into disaster for the region," warned Nur Hidayati, a campaigner for the environment watchdog Greenpeace."The nature of this region is that it is very unstable, and so when there is an accident, the whole region will suffer," she told AFP by telephone from Indonesia, referring to earthquakes and volcanic eruptions.

Southeast Asia also does not have the technology, the expertise or the raw materials to operate a nuclear power plant, she charged.

This means governments will have to import them from foreign sources, defeating the objective of gaining energy security, Hidayati added.However, she supported ASEAN's efforts to promote solar, hydro, wind and geothermal power."

There is still a lot of potential in the region that is not being tapped effectively. It is better for governments to look at these alternative energy sources that are relatively clean and safe," she said.Singapore has embarked on a strategy to establish itself as a centre for solar energy development.

Last month, Norway's Renewable Energy Corporation (REC) said it planned to invest more than 3.0 billion euros (4.31 billion US) to build a manufacturing plant in Singapore for solar wafers, cells and modules.


Cambodian-Chinese Agreement to Bring on Metered Cabs ServicesPhnom Penh, November 12, 2007
AKP
The Municipality of Phnom Penh and Chinese company Global (Cambodia) Trade Development Co. Ltd, concluded an agreement on metered taxis services in Phnom Penh on November 6.

Nhem Sarorn, chief of Phnom Penh public works service, and Chinese Company President Hu Guang Xi signed the 20-year agreement to bring 300 cabs to Phnom Penh streets over the next five years. Governor Kep Chuktema, who presided over the signing ceremony, said the company would provide a high quality service.

For the first step, 60 taxis will be operating in the capital by early next year, according to an official of the Phnom Penh Municipality. Three years after, the number of taxis will be increased to 100, and five year later to 300, he added.Under the terms of the deal, the company is to invest six million U.S. dollars in taxi transportation, said Kep Chuktema.

The company hoped to employ from 700 or 1,000 people and felt that serving Phnom Penh was an enticing prospect, said Chinese company president Hu Guang Xi.

NGOs against Mekong dams
HYDRO-POWER CONSTRUCTION
Tuesday November 13, 2007
Bangkok Post
More than 200 civil and environmental groups from 30 countries have called on the Mekong River Commission (MRC) to block the planned construction of six dams on the Mekong river.

In a petition sent to the commission's chief executive officer and donors of the MRC, the NGOs said they were concerned about the revival of plans to build dams on the lower Mekong and the failure of the MRC to defend the ecological integrity of the river.According to NGOs, the governments of Laos, Cambodia and Thailand have granted permission to Thai, Malaysian and Chinese companies to conduct feasibility studies for six large hydro-power dams - four in Laos, one in Cambodia and one on the Thai-Laos border.

''The Mekong is a vast international resource and therefore decisions affecting its use and management cannot be undertaken without due decision of the countries sharing the river,'' said the letter.

The NGOs urged the MRC to conduct a technical assessment and review the feasibility study of the dam projects.If the MRC fails to protect the river from unsound projects, the group said, they would urge the MRC donors to review funding of the commission.

The MRC is an international, country-driven organisation that provides the institutional framework to promote cooperation among the countries sharing the Mekong.


The Angkor Nat'l Museum inaugurates

the Angkor National MuseumTuesday, November 13, 2007Everyday.com.khTranslated from Khmer by Socheata
On 12 November 2007, prime minister Hun Sen inaugurated the Angkor National Museum which is the sole modern international museum in the province of Siem Reap.
The museum was built at a cost of almost $15 million by a private (KI-Media note: The museum is built by a Thai company).
Hun Mana, the daughter of Samdech Dek Cho Hun Sen, is the chairman of the board of directors of the museum. The museum is built on a lot measuring approximately 10,000 square-meters and it took three years to complete its construction.

The museum will display numerous artifacts and sculptures from the Angkor period for local and foreign tourists viewing. The entry fee is $12 for foreigners and $3 for Cambodians.

Opposition leader Sam Rainsy said that Cambodian artifacts should not be displayed in a private museum. Sam Rainsy said that all these artifacts are national treasures and nobody can use their influence to display these artifacts for the profit of a private company.

Kampong Cham farmer increase Cassava plantation
RFA
November 10th, 2007

Villagers in Khum Da, Memot district, Kg. Cham has increased cassava plantation this year because of the price increase and demand.

It costs 250 Riels ($0.06) per kilo
sometimes the price $300 to $500 per hectare.
About 50% of more than 20,000 hectares of land in 14 communes of Memot district has planned cassava.