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Thailand plans to buy Cambodian water
Thailand’s listed Eastern Water Resources Development and Management Plc’s subsidiary Universal Utilities Plc. a tap water provider, plans to spend some 200 million baht ($6 million) a year to buy water from the still to be built Stung Nam hydroelectric dam in Koh Kong province to supply the Thai provinces of Chon Buri, Rayong and Chachoengsao.
Cherdchai Pitiwatcharakul, the company’s acting managing director, was quoted by the Bangkok Post as saying the population in the three provinces in the Eastern Economic Corridor (EEC) is expected to increase fivefold from three million.
The areas are due to accommodate investment in 10 targeted industries.
“The demographic changes brought about by EEC will make the diversion of raw water from Cambodia to the EEC area worthy of investment due to economies of scale,” Mr. Cherdchai said.
He said that the company has set aside 200 million baht of capital expenditure per year, starting from 2017.
Most, around 117 million baht, will be used to develop and expand tap water services in the eastern provinces, including the EEC.
He said that another 40 million baht has been allocated for expansion in Chon Buri’s Bang Pakong district and around 23 million baht for expansion in Chachoengsao.
The eastern region has generated the biggest proportion of revenue to the company and the rise of EEC is expected to further boost tap water demand.
Bun Leut, governor of Koh Kong province, told Khmer Times yesterday that he had not received any inquiries from the company over the water deal.
“So far, I know nothing about it but they might be contacting their local partner here,” he said.
Ly Yong Phat, a prominent tycoon of Koh Kong and owner of LYP Group also said that he has not received any approach from the Thai side. He added that right now the Stung Nam hydro dam which he owned had yet to be built.
“They have not contacted me yet or maybe they are waiting till Stung Nam Hydro Dam is built as we are coming close with its construction,” Mr. Phat said.
According to Mr. Cherdchai under the project they will develop a 500km pipeline to carry water from Koh Kong to Thailand’s Trat and Chanthaburi provinces before being stored in local reservoirs.
“Last year, we sold 93 million cubic meters to the eastern region and this year we expect the sales to rise to 104 million cubic meters due to rising demand,” said Mr. Cherdchai, adding that demand is expected to grow by three to four percent this year.
Source: http://www.khmertimeskh.com/news/37220/thailand-plans-to-buy-cambodian-water/