The National Assembly on Thursday approved a measure to guarantee compensation to Power Synergy Corporation for the operation of a power plant.
Power Synergy, a joint Cambodia-Malaysia venture, plans to invest $400 million to establish a coal plant in Sihanoukville, which some officials say will help power Cambodia and reduce electricity costs.
The new measure protects compensation for the plant in the event of political upheaval.
Cambodian People’s Party lawmaker Chiem Yeap said the plant will produce electricity for Cambodians and tax revenue for the government.
But opposition Sam Rainsy Party lawmaker Yim Sovan said the agreement was unlikely to reduce the present price of electricity.
Kong Vibol, secretary of state for the Ministry of Economy and Finance, told the National Assembly the agreement met international standards.