Cambodia's Ministry of Industry, Mines and Energy has signed an agreement with China's Sinohydro Corporation to develop Kamchay hydroelectric project on a build-operate-transfer basis.

The state-run Chinese company was awarded the contract last year to build the US$280M hydroelectric dam on Kamchay Mountain near Bokor national park in Kampot province, about 150km southwest of the capital Phnom Penh. The firm will have the right to operate the plant for 40 years, and the project should be completed in four years.

With a total installed capacity of 193.2MW, the project will provide 498GWh/yr. The power generated by the dam is to be distributed through grid lines to Phnom Penh through Kampot, Takeo and Kandal provinces.