Cambodia Signs Deal To Buy More Energy From Laos: Recap Of Prime Minister Hun Manet’s Visit
Cambodian Prime Minister Hun Manet made his first official visit to neighbouring Laos and met with his Laotian counterpart Sonexay Siphandone, with the two leaders overseeing the signing of three agreements and four Memoranda of Understanding (MoUs) focusing on border affairs and the energy sector.
Hun Manet’s two-day visit from 25-26 March 2024 to Laos was highlighted by the MoUs which include agreements on the exchange of ratification instruments for the State Boundary Treaty between Cambodia and Laos, expressing its shared commitment to maintaining border stability, as well as agreements on new energy cooperation aimed at enhancing energy security and sustainability in the region. This is the latest in a number of international state visits the Cambodian Prime Minister has made recently, including trips to France, Thailand, and Australia which have all hailed new economic agreements.
Accompanying the Cambodian delegation to Laos, were Sok Chenda Sophea (Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation), Cham Nimul (Minister of Commerce), Kith Meng (President of Cambodia Chamber of Commerce)) and So Naro (Minister Delegate attached to the Prime Minister in charge of ASEAN Affairs).
Energy Cooperation Between Cambodia And Laos
Of the sevens agreements, five pertained to the energy sector. MoUs between the Ministries of Mines and Energy of Cambodia and various Laotian counterparts were signed, which will facilitate the purchase of green energy from several hydro, wind, and pump storage projects in Laos.
These MoU’s on energy cooperation between Cambodia’s Ministry of Mines and Energy and its counterparts in Laos, include:
- MoU with PHONGSUBTHAVY GROUP SOLE CO., LTD on the purchase of green energy from "XEKHAMAN II Hydro and Wind Power Hybrid Projects" in Laos to Cambodia.
- MoU with XAYSANA Group, WIS, and SISAN INTERNATIONAL JOINT DEVELOPMENT SOLE., LTD on the purchase of “Nam Emoun 1, 2 Hydro, Pump Storage and Wind Power Hybrid Projects” in Laos to Cambodia.
- MoU with EDL on the purchase of green energy from the “Green Energy Supply of 1000 MW Combination of Hydro, Wind and Geothermal Projects” in Laos to Cambodia.
- MoU with SPG CORPORATION PUBLIC COMPANY LIMITED on purchasing green energy from the “Xekong Pump Storage Power Project” in Laos to Cambodia.
Cambodia Support Laos ASEAN Chairmanship With $1 Million Donation
The Royal Government of Cambodia announced a donation of USD $1 million to assist Laos in its role as the rotating chair of the 2024 ASEAN Summit and Related Meetings.
Prime Minister Hun Manet reaffirmed Cambodia's full support for Laos in this pivotal role, underscoring the importance of successful regional cooperation amidst ongoing challenges.
Trade Agreements Cambodia/Laos
The Cambodia Chamber of Commerce (CCC) reported that their delegation will hold further meetings to develop business relationships and expand trade and investment activities.
Cambodia and Laos initially established diplomatic relations in 1956 and the CCC and the Lao National Chamber of Commerce and Industry (LNCCI) signed an MoU on February 14 2023 to promote trade, investment and tourism.
Direct Flights Between Cambodia and Laos
Both leaders celebrated the inauguration of direct flights via Lao Airlines connecting Phnom Penh and Vientiane which restarted on March 19th, acknowledging the potential to enhance tourism, trade, and people-to-people connectivity.
Lao Airlines operates three flights a week, on Tuesdays, Thursdays, and Saturdays between the two capitals and competes with Vietnam Airlines who also offer the same route.
Cambodia To Host Cambodia-Laos-Vietnam (CLV) Summit 2024
As Cambodia prepares to assume the chairmanship of the 2024 Cambodia-Laos-Vietnam (CLV) Summit, Prime Minister Hun Manet affirmed the nation's commitment to advancing regional cooperation and integration.
"Within the multilateral framework, the Laotian prime minister and I discussed cooperation between the three CLV countries. Cambodia will host the CLV Summit and the CLV Defence Ministers' Meeting, along with the second disaster relief exercise and humanitarian assistance at the end of 2024,” confirmed the Prime Minister.
In addition, an invitation was extended to Sonexay Siphandone to attend the Siem Reap-Angkor Summit on a Mine-Free World to be held in November 2024 in Cambodia.
The CLV Development Triangle, established in 1999, is dedicated to transforming the border area into a centre of development and interconnected communities. This region is rich in natural resources and biodiversity, boasting significant potential for sustainable development The triangle encompasses a total of 13 provinces, with Vietnam contributing five provinces, Laos four, and Cambodia four. Cambodian four provinces, include Ratanakiri, Mondulkiri, Kratie, and Stung Treng.