Cambodia has officially signed an agreement to buy a power generator from Finland, according to Prime Minister Hun Sen’s official Facebook page.

The Cambodian government approved the purchase of the 200MW power generator from Finland for $175 million, with it set to further bolster Phnom Penh’s power supply.

Cambodia last month also agreed in principle to purchase a 200MW generator from Germany for $180 million.

The deal was signed in a meeting with Finnish Minister for Development, Cooperation and Foreign Trade Ville Skinnari on Wednesday, following the World Trade Organisation’s annual review meeting in Geneva, Switzerland.

Both generators will be installed at a new $380 million oil and liquefied natural gas power plant in Koh Reah commune in Kandal province’s Lvea Em district.

Deal with Chinese companies

Cambodia’s state-run electricity supplier Electricite du Cambodge (EdC) signed an agreement with two Chinese companies last month to build the new facility.

CGGC-Un Power will build the 200MW Finnish Wartsila power plant, with China National Heavy Machinery Corporation installing machinery licensed by Germany’s MAN Energy Solutions, a subsidiary of Volkswagen AG.

The entire project will cost $380 million, with $300 million funded by the government and the rest from EdC.

Some $355 million will be allocated to the plant’s construction and $25 million to other infrastructure, EdC said.

Also during the meeting, Hun Sen asked Finland to buy Cambodian milled rice after the EU’s decision to impose tariffs on it, informing the Finnish minister that he felt the measure was unjust.

The EU in January decided to impose tariffs on the Kingdom’s rice imports due to their supposed impact on its member states’ rice farmers, following complaints from Italy and Spain.

Hun Sen also invited the Finnish minister to visit Cambodia to explore potential investments.