GKÁisnIkm<úCa

Electricité du Cambodge

ANNUAL REPORT

1998

Corporate Planning and Projects Department

Planning, MIS and Tariff Office

November, 1999

Annual_98 1
 HISTORY
OF THE ESTABLISHMENT OF EDC

Electricity was first introduced to Cambodia in 1906 by Compagnie des

Eaux Electricité (CEE), Union d'Electricité d'Indochine (UNEDI) and
Compagnie Franco-Khmer d'Electricité (CFKE). The CEE was responsible
to serve the electricity to Phnom Penh and suburb, while UNEDI operating
in all provinces except Battambang Province, which was served by CFKE.
Cambodia's power sector was severely damaged by years of war and
neglect. Only 12 % of the households have access to electricity.
Cambodia’s electricity supplies at present comprise 22 small isolated power
systems, which serve Phnom Penh and the capital towns of the provinces.

Development from 1958 to 1996

In October 1958, the Cambodian Government purchased the CEE's and

UNEDI's concession rights to form the Electricité du Cambodge (EDC) to
generate, transmit and distribute the electricity to Phnom Penh and
provinces. During the long war, EDC's facilities were destroyed.
In 1979, EDC was re-integrated into an administrative structure under
Ministry of Industry. In 1991, EDC was transferred to the Phnom Penh
Municipality and changed its name to the Electricité de Phnom Penh (EDP)
to manage the electric supply in Phnom Penh. The electric generations in
the provinces were managed by the Industry Department of the provincial
authorities.

In 1992, EDP was re-named the Electricité du Cambodge and was attached
to the Ministry of Energy. After election in 1993, EDC was restructured
under the Ministry of Industry, Mines and Energy (MIME) and was
responsible for the development, management and operation of the power
system in Phnom Penh.
Power utilities in the provinces are under the control of Provincial
Authorities, who receive budgetary support through MINE.

EDC Today

In March 1996, Royal Government created a wholly state-owned limited

liability company named the Electricité du Cambodge (EDC) to generate,
Transmit and distribute electric power though-out Cambodia. Now EDC is
juridical person with administrative, financial and managerial authority,
possessing civil rights and responsibility according to the law and the
pursuit of commercial objectives, with responsibility for its profit and losses
and liable for its debts to the extent of the value of its assets.

EDC's Coverage Areas

With the re-organization of the electrical utilities, electric supplies the
following four provincial capitals have been taken over by EDC.

Annual_98 2
 Phnom Penh has a population of around 1 million and 100,000 customers.
The system in Phnom Penh has a peak demand of 61 MW and a power
generation capacity of 87 MW, out of which 35 MW are provided by an IPP.
A second IPP is scheduled to come on line by November 2000, to provide
an additional capacity of 60 MW, while an IPP of 15 MW committed to
provide the electricity in early 1999. The total installed capacity for all
provincial capitals are estimated 37 MW and size range from 300 kW to 5
MW.

Sihanoukville locates southwestern part of the country, approximately of

270 km from the capital city of the Kingdom of Cambodia, Phnom Penh.
The electricity has been introduced to Sihanoukville since 1958 by French
facilities, and than replaced by the generators of Chezce in 1970, from
which the capacity output was approximately of 1,500 kW. After a long cut
off, because of the war, in 1979 the electricity of Sihanoukville has been
restored on the territory of 1.5 hectare, in which gensets 2x800 kW have
been installed under the grant aid of former Soviet Union (USSR). In 1985,
the units of 2x800 kW and 2x250 kW have been added to the station, which
was also the assistant of USSR. According to the growth of the power
demand, in 1997, the 1x1,800 kW has been added to the plant by
transferring French genset from PHN's system, which was the grant aid to
solve the electricity shortage within the city and in October 1998, under the
ADB loan, the 2 x 2,500 kW have been commissioning.

Siem Reap lies approximately of 250 km Northwest of Phnom Penh, is the

capital of the Siem Reap/Odar Meanchey province. The population of the
province is approximately of 695,485 in 1998, in which 119,484 in the urban
and in the rural area are 576,001. The average growth rate at 7.2 %
annually and the territory is totally of 10,299 km2. The households in the
rural area are estimated of 106,106 while the urban areas are 20,980
households. The farmers are estimated approximately of 90 % of the total
population within the province. The power station of the city of Siem Reap
Province (Siem Reap City) was first built in 1960. This old station has been
ceased and functioning to be as a substation, since the new station, which
is located away from the old site, started commissioning.

Kampong Cham is situated about 120 km Northeast of Phnom Penh on

the bank of the Mekong River. The population of the province is 45,326 and
8,225 households. The population of Kampong Cham province is 1,607,913
in 1998, and the territory is 9,799 km², in which the population in the urban
is approximately of 45,326 and 8,225 households, while in the rural area the
population is 1,562,587 and 304,794 households.

Annual_98 3
 EDC's STRUCTURE
AND ORGANIZATION CHART

EDC's STRUCTURE
The ownership of EDC vests in the state. The Ministry of Industry Mines
and Energy and the Ministry of Economy and Finance are co-owners of the
EDC.

The Board of Directors1 of EDC comprised of seven directors including:

ƒ Representative of the Ministry of Industry, Mines and Energy (one)
Chairperson;
ƒ Representative of the Ministry of Economic and Finance (one);
ƒ Representative of the Ministry of Justice (one);
ƒ The Managing Director of the EDC;
ƒ Representative of EDC's employees (one); and
ƒ Representatives of the Business Community (two).

At present, EDC is headed by a Managing Director reporting to a Board of

Directors which in turn reports to the shareholding Ministers (Minister of the
Ministry of Industry, Mines and Energy and Minister of the Ministry of
Economic and Finance).

EDC's Managing Director is assisted by seven Executive Directors with

distinct responsibilities for: (a) Generation, (b) Transmission and
Distribution, (c) Commercial, (d) Finance, (e) Administration, (f) Corporate
Planning and Projects, and (g) Audit. The organizational structure of EDC is
as bellow.

EDC's Function
EDC is authorized to under take the following function:

1. the generation of electricity for the purpose of satisfying the needs of

consumers;
2. the generation of electricity for purposes of export to neighbouring
countries and the importation of electric power from such countries;
3. the construction and operation of a national transmission network to
ensure the reliable delivery of electric power;
4. the construction and operation of subsidiary networks for the distribution
of electric power and the co-ordination of connections and operation of
EDC and other distribution networks;
5. the sale of electricity and associated services;
6. the acquisition, transfer and exchange of electric power; and
7. engage the all legal acts necessary to achieve its commercial and
corporate objectives.

1
EDC's Board of Directors was appointed on 5 September 1997.

Annual_98 4
HUMAN RESOURCES
AND DEVELOPMENT

Human Resources
The staff strength of EDC as of December 31, 1998 is 1351, in which 10 %
of the total personnel or 132 are females. The managerial personnel are
totally of 70 or 5.2 % of the total personnel, while the skilled and technician
workers are 516 or 38.19 %, accountants and office staff are 474 or 35.1 %
of the total personnel and the unskilled workers are totally 134 or 9.92 % of
the total personnel. A new salary structure has been being implemented to
motivate the EDC's staff.

Personnel of Electricité du Cambodge (December 31, 1998)

Degree PHN SHV SRP KGC Total

Managers 61 3 3 3 70
Engineers 148 4 4 1 157
Technician 166 5 5 11 187
Accountant & Office 410 30 19 15 474
staff
Skilled workers 273 18 18 20 329
Unskilled staff 72 44 15 3 134
Total 1130 104 64 53 1351

Note:

PHN - Phnom Penh SHV - Sihanoukville

SRP - Siem Reap KGC - Kampong Cham

Work Force of the Electricité du Cambodge

(December 31, 1998)

Managers,
Unskilled Engineers,
5.18%
staff, 9.92% 11.62%
Skilled
Workers, Technician,
24.35% 13.84%

Accountant
& Office
Staff,
35.09%

Annual_98 5
 Human Resources Development

The EDC management has placed the highest priority of the human
resources development and training to its staff for efficient operation of the
utility. With ADB's assistance, a training centre is being established in
Phnom Penh, which will be ready by October 1999. The key objective of
training center will be to develop a comprehensive programme and
schedule for the training of staff in power sector.
EDC has also identified a need to train their senior staff in the area of
Planning, Operation and Commercial from a management prospective. The
executive directors and senior staff of EDC totally of 24 are participating in a
year training programme sponsored by the World Bank. In 1997, 107 staffs
were trained in 12 divers courses and at the first nine months in 1998, 104
staffs were trained.

Annual_98 6
 POWER
SYSTEM OPERATION

Due to the severely damaged by years of war and neglect, the power
system of Cambodia, which concentrated in Phnom Penh, was unable to
supply the demand for electricity from conventional grid connection. A large
amount of demand was supplied from large and small generators owned by
large, medium and small consumers.

Only 12 percent of the households in Cambodia have access to electricity

and per capita of the energy consumption accounted for 30 kilowatt-hour
per annum. It is the lowest ratio among East Asian Countries.

Since 1996, EDC, beside of PHN's which adjoining Kandal Province power
system, EDC has also operated isolated grid networks for the provincial
cities of Sihanoukville (SHV's), Siem Reap (SRP's) and Kampong Cham
(KGC's). At the end of 1998, the total installed capacity was 95 MW with the
possible output was 84 %. The possible output increased from 67 % and 75
% in 1996 and 1997, respectively. 1998's generation was 365 Million kWh
including 185 Million kWh purchased from Independent Power Producers
(IPPs) in Phnom Penh and KGC's provincial capital.

Most of EDC's power generation plants are small unit ranges from 2.5 MW
to 6.0 MW. The are traditional diesel engines use light distillated Oil (LDO),
while the plant no C2 (18 MW) and IPP-I (35 MW) are using heavy fuel oil
as the main source of energy.

EDC's Installed Capacity and the Possible Output

Year 1998 1997 1996

PHN's, Installed Capacity, MW 77.80 116.12 114.70
Possible Output, MW 66.60 81.00 78.10
EDC's Installed Capacity, MW 42.80 85.62 85.32
Possible Output, MW 41.60 60.00 78.10
IPP's-I Installed Capacity, MW 35.00 35.00 -
Possible Output, MW 25.00 21.00 -
SHV's Installed Capacity, MW 10.56 5.56 3.76
Possible Output, MW 8.94 3.94 1.99
SRP's Installed Capacity, MW 2.96 2.96 2.96
Possible Output, MW 2.40 2.40 2.40
KGC's Installed Capacity, MW 3.30 3.30 3.30
Possible Output, MW 1.44 1.44 1.44
Total Installed Capacity, MW 94.62 118.44 124.72
Possible Output, MW 79.38 88.78 83.93
Percentage2, % 83.93 74.95 67.3

2
the percentage of the possible output to installed capacity

Annual_98 7
 Installed Capacity and the Possible Output
140 Installed Capacity,
120 MW
100 Possible Output,
MW

MW & %
80
Percentage , %
60
40
20
0
1996 1997 1998 Year

At the 1998, power generation for Phnom Penh was from four power
stations excluded the stations C1and C4 that were stopped operating
according to deterioration of those units. The plant C2 (18 MW), IPP-I (35
MW), C3 (14.2 MW), C5 (10 MW) and C6 (18 MW) are serving the power
for Phnom Penh municipality, suburban and the adjoining Takhamu area
(Kandal Province). The thermal oil-fired power plant (IPP-I), that is
generating the electricity sale to EDC, has been commissioned since 1997.

Sihanoukville is served the electricity from power plants (10.56 MW).

According to the shortage of the spare parts for the generating sets from
USSR (5 MW) has been phased out and some units stand by for
reservation. Under the loan of Asian Development Bank (ADB-II), a plant of
2x2.5 MW has been commissioned since October 1998.

Siem Reap City is supplying the electricity by a power station (3 MW) under
the assistance of former USSR and grant aid of France. In 1998, the energy
generation in SRP's system was 10.02 GWh.

Kampong Cham City has supplied the electricity by a single power plant
equipped with the installed capacity of 2x800 kW, 2x280 kW and a private
temporary generator 1x800 kW. This existing power plant will be functioned
as a substation when the power generation is entirely closed and new
power plant at the other site is commissioned by IPP (Global Technology
Support - GTS).

EDC's Energy Generation

EDC 1998 1997 1996
PHN's 341.51 286.58 223.16
EDC's 161.46 167.74 223.16
IPP's-I 180.05 118.85 0.00
SHV's 8.63 11.58 11.08
SRP's 10.02 8.25 7.35
KGC's 4.40 3.85 3.40
Total 364.56 310.26 244.99

Annual_98 8
 EDC's Energy Seles

Year 1998 1997 1996

PHN's 264.74 214.32 168.34
SHV's 8.06 6.35 6.02
SRP's 5.13 3.59 2.97
KGC's 3.37 2.58 2.12
Total 281.3 226.84 179.45

Energy Generation vs. Sales

400
350
300
Energy, GWh

250
200
150
100
50
0
1996 1997 1998 Year
Energy Generation, Energy Sold

EDC's System Losses

Unit 1998 1997 1996
Generation GWh 364.56 310.26 244.99
Energy Sold GWh 282.30 233.34 183.40
Losses GWh 82.26 76.92 61.59
Losses % 22.56 24.79 25.14

EDC's System Losses

26 %

25

24
23

22

21
1996 1997 1998
Year

Annual_98 9
 Daily Generation Curve on the Peak Day

70

60 12/08/96
50 9/3/97

Capacity, MW
2/12/97
40
7/12/97
30
27/02/98
20 04/02/98

10 23/05/98

0
0

8
10

12

14

16

18

20

22
Time, hr

Distribution Networks

There are several voltage levels22kV3, 15 kV, 6.3 kV, 4.4 kV (2-phase) are
using in Phnom Penh network, while in the provinces only 6.3 kV and 4.4
kV. The 4.4 kV system had no longer use in 1997. The EDC's design
standard requires to upgrading the existing medium voltage to 22 kV, to
modernize the system reliability, to minimize the line losses and to adapt
the system standard of the region. For the low tension distribution level is
380/220 V is the country voltage level.

Distribution Facilities in PHN's System

Item, 1996 1997 1998
Line Length, cct-km 538.37 616.16 401.74
Medium Voltage 262.73 269.06 270.35
Low Voltage 275.64 347.11 131.40
# Substations, nos 468.00 490.00 495.00
MVA Substation, 113.04 121.17 119.84

EDC's Tariff Rate 4

Sector Tariff Structure, US$/kWh

Old Rate Existing Rate
PHN's (Existing rate was effective March 1999)
I. Residential 0.092 0.092
II. Industrial & Handicraft 0.092 0.170
III. Commercial & Services 0.092 0.170
IV. Embassy, Hotels/Guest Houses, Foreigners 0.210 0.210
V. Government Office 0.092 0.184

3
Although the Medium Voltage 22 kV have been constructed since 1996, but the only 15 kV energies to
match up with the existing 15 kV equipment which will be upgraded when the entire rehabilitation project
will completed
4
The rate was charged in both Cambodian Currency Riel and US$. It was 3800 Riel to 1 US$ in 1998.

Annual_98 10
 EDC's Tariff Rate (Con't)
Sector Tariff Structure, US$/kWh
Old Rate Existing Rate
SHV's (Existing rate was effective March 1999)
I. Residential 0.2300 0.1300
II. Industrial & Handicraft 0.2300 0.1750
III. Commercial & Services 0.2600 0.1950
IV. Embassy, Hotels/Guest Houses, Foreigners 0.2600 0.2000
V. Government Office 0.2600 0.2000

SRP's (Existing rate was effective Feb. 1999)

Flat Rate 0.2700 0.2300

KGC's
Flat Rate (Charge in Riel) 0.2207 0.2207

Annual_98 11
 CUSTOMERS'
SERVICE AND OTHER ACTIVITIES

In order to improve the quality of customer services, EDC strives to

renovate its marketing management practices and to simplify customer
service procedures to meet increasing demand in these areas. Until 1998,
the customers service, although, was not catching up with the strategy but it
was noticeably increasing its quality. There were some regulations issued.
According to the plans, EDC's marketing unit will be responsible for other
service regarding to satisfy our customer's needs.

WITH CUSTOMERS:

1. To always satisfy the electricity demands of all customers with ever

higher quality and better services ;
2. To be polite, receptive with customers;
3. To act promptly on customers' concerns;
4. To make every effort to ensure our products and services improve
customers' living standards.

WITH EMPLOYEES:

1. To provide our employees with opportunities for professional growth and

advancement on the basis of their performance, integrity and loyalty to
the organization;
2. To provide our employees with just and competitive compensation and
benefits that ensure their stable living conditions;
3. To guarantee fairness, equal treatment and opportunity for the
employees to maximize their contribution to the development of the
organization;
4. To provide suitable working conditions that facilitate an open and honest
communication of information among all employees to promote
teamwork, productivity and cooperative empowerment for the
organization's growth.

WITH SUPPLIERS:

1. To foster friendly, stable, long-term and mutually beneficial relations with

our suppliers for a power system of quality, reliability, safety and
efficiency;
2. To seek and develop relations with suppliers having good business
tradition, respect to customers and truthfulness.

WITH COMMUNITY:

1. To uphold and maintain the highest standard of business ethics;

2. To fulfill our social responsibilities;
3. To actively contribute to the social development.

Annual_98 12
 CAMBODIA POWER SECTOR
EXPANSION

Power Sector Development Policy

The royal government of Cambodia formulated an energy sector development policy in
October 1994, which aims at:

- To provide an adequate supply of energy throughout Cambodia at reasonable and

affordable price,
- To ensure a reliable, secure electricity supply at prices, which facilitate
investment in Cambodia and development of the national economy,
- To encourage exploration and environmentally and socially acceptable
development of energy resources needed for supply to all sectors of the
Cambodian economy,
- To encourage efficient use of energy and to minimize environmental effects
resulting from energy supply and use.

Power Demand Forecasting

According to the previous study, electricity demand is expected to face a signification
increase for the next 20 years. Electricity generation in Cambodia is likely to grow from
150 MW and 678 GWh in year 2000 to 764 MW and 2635 GWh in year 2016. The
majority of this growth will occur in Phnom Penh and some the other provincial towns.
Table 1 depicts the expected power and energy output for Cambodia. To meet the future
demand, royal government has developed a Generation and the National Transmission
System Master Plan.
Generation Master Plan has been developed on the following criteria:

Table 1 Expected Power and Energy Generation for Cambodia

Year 2000 2002 2004 2006 2008 2010 2012 2014 2016

Power, MW 150 212 273 331 404 477 558 651 746

Energy, GWh 678 956 1036 1215 1454 1700 1968 2292 2634

Source: EDC/Corporate Planning and Projects Department.

Power Generation Master Plan

− Base thermal generation will be located in Sihanoukville due to considerations of
an independent access to imported oil, by reducing the amount of oil transported on
the Mekong.
− Peak thermal generation in Phnom-Penh.
− Small and medium size diesel units for base and peak load generation in the
provincial towns and cities.
− Expanded hydro development based initially on smaller easily accessible such as
Kirrirom, Prek Thnot, Kamchay and subsequently mid size hydro projects Stung
Atay, Middle Stung Russei Chrum and Battambang.

Annual_98 13
 GENERATION MASTER PLAN

1200

1000 Lower Se San 4 350 MW

800

Stung Atay & Russei Chrum 235 MW

600
MW
DC T/L to Vietnam 180
400
Kamchay + Kirirmos+ Prek Thnot 76
Combined Cycle
200 EDC + GT 170 MW
IPP2
0
1995 2000 2005 Year 2010 2015 2020 2025
Installed Capacity Max. Demand
Source: Government of Cambodia, MIME Nov. 1998, Cambodia Power Strategy 1999-2016

Power Transmission Master Plan

The transmission master plan has been developed taking into account the following
strategies to achieve Cambodia's energy sector objectives.

− reduce reliance on imported oil for energy generation (diversification of energy

sources)
− reduce reliance on the transport of oil to Phnom Penh for power generation
− reduce reliance on Vietnamese controlled oil transport to Phnom Penh
− increase operational efficiency of the system (minimize losses)
− encourage least cost development of provincial load centers by a cost effective mix
of grid expansion and local private generation
− increase competition in power generation by providing access to competitively
priced external sources of energy from Vietnam, Thailand or Laos
− maintain reliability of power supply at the level required and financially supported
by customers
− facilitate export of energy

Annual_98 14
Table 2 Transmission Development Planing
Contingency 0%
Year Connection Terminal Cost Comments
Substation
Capacity 1
M$
2001 Connect IPP2 to GS1 140 2.3 60MW CC established on C4 site
String 2nd circuit for GS1 to GS3 0.6
2002 Connects Kirrirom PStation to GS1 12.6 route through the NPP
Establish Kompong Speu 15 3.6 directly under Kirrirom line
Transmission Thailand-Bantey 30 7.0 115kV, SC
Mean Chey
2003 Transmission Takhmau 46.1 230kV, DC Takhmau-Takeo-
Sihanoukville Kampot- Sihanoukvill
Establish Takhmau 60 10.5 single transformer
Establish Takeo 15 7.0 directly under TL Takhmau-
Sihanoukville
Establish Kampot 30 7.5 230, 115 and 22kV
Establish Sihanoukville 30 7.1 115kV, DC Takhmau to GS2
Connect Takhmau to GS2 3.1
String second circuit for GS2 to 0.6
GS3
Install 2nd transf in GS3 60/240 1.1
Connect IPP3 3.0 90MW SC plant Sihanoukville,
230kV
Connect Prek Thnot Power Station 3.7 to Kompong Speu
Connect Battambang 30 6.9 115kV, SC line to Bantey Mean
Chey
Connect Siem Reap 15 17.4 with Bantey Mean Chey 115kV
2005 Connect IPP4 to SHV 4.5 90MW CC plant Sihanoukville,
230kV
2007 Establish North Phnom Penh, NPP 60/300 6.3 230/115kV, 115kV DC
transmission to GS1
2008 Connect Kamchay PS to Kampot 6.9 47MW hydro PS
2009 Interconnection with Vietnam 9.2 Takeo to Vietnam
Establish East Phnom Penh (EPP) 30/300 6.2 115/22kV terminal sub, 30MVA
Connect Kampong Cham 30 13.5 115/230kV, DC from NPP
(KCHAM)
2011 Establish South Phnom Penh , SPP 60/390 8.9 Connected toTakhmau (TAH)
Connect Battambang 2 11.8 36MW hydro, 115kV, SC to
Battambang
2012 Connect Stung Atay Power Station 71.0 110MW, hydro, 230kV TL via
Pursat and K Cham
Establish Pursat 15 4.6 Direct under TL to Stung Atay
Connect Prey Veng 15 6.1 115kV from EPP
2013 Establish West Phnom Penh WPP 60/450 14.1 115kV, DC from SPP and NPP
2014 Connect IPP5 toSihanoukville 3.0 90MW, SC gas turbine

2015 Establish Central Phnom Penh, GS4 70/520 18.6 U/G cable connection from IPP2
and GS2
2016 Connect Battambang and Pursat 19.7 230kV, DC, establish one system
Connect Middle Stung Russei 12.7 125MW, hydro connected to Stung
Chrum MSRC Atay
Establish Kampong Cham 156.2 directly under TL to Stung Atay
363.6
Source: Government of Cambodia, MIME Nov. 1998, Cambodia Power Strategy 1999-2016

Annual_98 15
Subregional Power Interconnection
Cambodia can be interested in three levels of energy trading with neighboring countries,
which are listed here and explained in detail bellow.

− Low level energy purchase, most likely through distribution line to provide cost
effective sources of power supply to areas close to the border.
− Low capacity transmission links with the initial function to import energy to
provincial load centers, and possible future energy export. Typically this can be a
transmission link with capacity about 100 MW and the reliability (single circuit or
double circuit) justified on a case bas case basis.
− Large capacity transmission lines dedicated to energy export and power wheeling
between countries. This category can contain heavy 230 kV or 500 kV transmission
and generally will be of interest to organizations studying regional
interconnections.

Annual_98 16
ELECTRICITE DU CAMBODGE
PHNOM PENH OPERATIONS

BALANCE SHEETS
As at 31 December 1998 and 1997
1998 1997
Riel '000 Riel '000
(Unaudited)
ASSETS

LONG-TERM ASSETS
Property, plant and equipment-net 365,088,691 197,214,027

CURRENT ASSETS
Cash on hand and in banks 6,623,584 3,474,134
Accounts receivable-net 27,956,633 23,099,221
Inventories-net 8,414,371 5,702,660
42,994,588 32,276,015

TOTAL ASSETS 408,083,279 229,490,042

LIABILITIES AND OWNERS' EQUITY

LONG-TERM LOAN 147,339,457 62,133,596

CURRENT LIABILITIES
Accounts payable 43,824,062 18,832,111
Guarantee deposits 10,227,667 7,379,858
Taxes payable 9,496,763 825,555
63,548,492 27,037,524

PROVISIONS 8,385,321 3,515,981

OWNERS' EQUITY
Capital 184,648,449 145,172,054
Revaluation surplus 63,146,244 -
Accumulated losses -58,984,684 -8,369,113
188,810,009 136,802,941

TOTAL LIABILITIES AND

OWNERS' EQUITY 408,083,279 229,490,042

Annual_98 17
ELECTRICITE DU CAMBODGE
PHNOM PENH OPERATIONS

STATEMENTS OF OPERATIONS
For the years end 31December 1998 and 1997

1998 1997
Riel '000 Riel '000

TURNOVER 103,609,767 78,890,179

COST OF SALES 109,917,640 74,782,224

GROSS PROFIT/(LOSS) -6307873 4,107,955

OPERATING EXPENSES 40,538,562 14,828,501

OPERATING LOSS 46,846,435 10,720,546

OTHER INCOME-NET 2,781,005 2,877,980

LOSS BEFORE PROVISION

FOR MINIMUM TAX 49,627,440 13,598,526

PROVISION FOR MINIMUM TAX 988,131 -

NET LOSS FOR THE YEAR 50,615,571 13,598,526

Less net profit for the eight months ended

31 August 1997 charged to the capital - -5,229,413

ACCUMULATED LOSS AT
BEGINNING OF YEAR 8,369,113 -

ACCUMULATED LOSS AT
END OF YEAR 58,984,684 8,369,113

Annual_98 18
ELECTRICITE DU CAMBODGE
SIHANOUK VILLE BRANCH OPERATIONS

BALANCE SHEETS
As at 31 December 1998 and 1997
1998 1997
Riel '000 Riel '000
(Unaudited)
ASSETS

LONG-TERM ASSETS
Property, plant and equipment-net 27,501,906 8,340,78
Computer license-net 36,245 46,129
27,538,151 8,386,307

CURRENT ASSETS
Cash on hand and in banks 187,432 71,040
Accounts receivable-net 1,610,006 1,025,762
Inventories-net 580,746 184,757
2,378,184 1,281,559

TOTAL ASSETS 29,916,335 9,667,866

LIABILITIES AND OWNERS' EQUITY

LONG-TERM LOAN 18,693,396 190,245

CURRENT LIABILITIES
Accounts payable 1,390,663 733,684
Guarantee deposits 173,645 88,720
Taxes payable 167,742 36,822
Loan from director - 286,471
1,732,050 1,145,697

OWNERS' EQUITY
Capital 2,709,004 8,390,199
Revaluation surplus 7,059,759 -
Accumulated losses -277,910 -58,275
9,490,853 8,331,924

TOTAL LIABILITIES AND

OWNERS' EQUITY 29,916,335 9,667,866

Annual_98 19
ELECTRICITE DU CAMBODGE
SIHANOUK VILLE BRANCH OPERATIONS

STATEMENTS OF OPERATIONS
For the years end 31December 1998 and
1997

1998 1997
Riel '000 Riel '000
(Unaudited)

TURNOVER 6,556,020 4,700,010

COST OF SALES 2,888,303 3,550,854

GROSS PROFIT 3,677,717 1,149,156

OPERATING EXPENSES 2,339,667 1,351,381

OPERATING PROFIT/(LOSS) 1,338,050 -202,225

OTHER INCOME-NET 1,492,150 261,736

LOSS BEFORE MINIMUM TAX

EXPENSE 154,100 463,961

MINIMUM TAX EXPENSE 65,535 18,414

NET PROFIT/(LOSS) FOR THE YEAR 219,635 482,375

Less net profit for the eight months ended

31 August 1997 credited to the capital - -424,100

ACCUMULATED LOSS AT
BEGINNING OF YEAR 58,275 -

ACCUMULATED LOSS AT
END OF YEAR 277,910 58,275

Annual_98 20
ELECTRICITE DU CAMBODGE
SIEM REAP BRANCH OPERATIONS

BALANCE SHEETS
As at 31 December 1998 and 1997
1998 1997
Riel '000 Riel '000
ASSETS

LONG-TERM ASSETS
Property, plant and equipment-net 7,509,275 7,616,416
Computer license-net 34,901 44,420
7,544,176 7,660,836

CURRENT ASSETS
Cash on hand and in banks 15,630 22,390
Accounts receivable-net 1,008,165 674,584
Guarantee deposits 119,886 126,757
Inventories-net 86,228 54,877
1,229,909 878,608

TOTAL ASSETS 8,774,085 8,539,444

LIABILITIES AND OWNERS' EQUITY

LONG-TERM LIABILITIES
Deferred grant income-net 1,473,650 1,624,154
Long-term loan 265,638 243,232
1,739,288 1,867,386

ACCOUNTS PAYABLE 823,935 463,288

OWNERS' EQUITY
Capital 1,198,631 6,271,335
Revaluation surplus 5,152,646 -
Accumulated loss -140,415 -62,565
6,210,862 6,208,770

TOTAL LIABILITIES AND

OWNERS' EQUITY 8,774,085 8,539,444

Annual_98 21
ELECTRICITE DU CAMBODGE
SIEM REAP BRANCH OPERATIONS

STATEMENTS OF OPERATIONS
For the years end 31December 1998 and 1997

1998 1997
Riel '000 Riel '000

TURNOVER 6,016,952 4,015,890

COST OF SALES 4,185,054 3,005,020

GROSS PROFIT 1,831,898 1,010,870

OPERATING EXPENSES 2,136,251 958,940

OPERATING PROFIT/(LOSS) -304,353 51,930

OTHER INCOME-NET 227,846 35,289

PROFIT/(LOSS) BEFORE MINIMUM TAX -76,507 87,219

EXPENSE

MINIMUM TAX EXPENSE 1,343 1,624

NET PROFIT/(LOSS) FOR THE YEAR -77,850 85,595

Less net profit for the eight months ended

31 August 1997 credited to the capital - 148,160

ACCUMULATED LOSS AT
BEGINNING OF YEAR -62,565 -

ACCUMULATED LOSS AT
END OF YEAR 140,145 62,565

Annual_98 22
ELECTRICITE DU CAMBODGE
KOMPONG CHAM BRANCH OPERATIONS

BALANCE SHEETS
As at 31 December 1998 and 1997
1998 1997
Riel '000 Riel '000
(Unaudited)
ASSETS

LONG TERM ASSETS

Property, plant and equipment-net 1,849,635 1,731,422

CURRENT ASSETS
Cash on hand and in banks 195,731 199,482
Accounts receivable-net 209,079 61,677
Guarantee deposits 19,666 25,796
Inventories-net 198 -
424,674 286,955

TOTAL ASSETS 2,274,309 2,018,377

LIABILITIES AND OWNERS' EQUITY

CURRENT LIABILITIES
Accounts payable 280,036 177,796
Guarantee deposits 18,812 -
Taxes payable 9,720 705
308,568 178,501

OWNERS' EQUITY
Capital 1,873,764 1,810,274
Accumulated losses 91,977 29,602
1,965,741 1,839,876

TOTAL LIABILITIES AND

OWNERS' EQUITY 2,274,309 2,018,377

Annual_98 23
ELECTRICITE DU CAMBODGE
KOMPONG CHAM BRANCH OPERATIONS

STATEMENTS OF OPERATIONS AND ACCUMULATED PROFIT

For the years end 31December 1998 and 1997

1998 1997
Riel '000 Riel '000
(Unaudited)

TURNOVER 2,227,615 1,707,501

COST OF SALES 1,795,743 1,502,354

GROSS PROFIT 431,872 205,147

OPERATING EXPENSES 366,759 164,794

OPERATING PROFIT 65,113 40,353

OTHER INCOME/(EXPENSE)-NET 7,402 -3,842

PROFIT BEFORE MINIMUM TAX

EXPENSE 72,515 36,511

MINIMUM TAX EXPENSE 10,140 6,909

NET PROFIT FOR THE YEAR 62,375 29,602

ACCUMULATED LOSS AT
BEGINNING OF YEAR 29,602 -

ACCUMULATED LOSS AT
END OF YEAR 91,977 29,602

Annual_98 24