Audited Project Financial Statements

Project Number: 51182-001

Loan/Grant Number: L3789-CAM/L8357-CAM/G0645
Period covered: 1 January 2023 to 31 December 2023

Cambodia: National Solar Park Project

Prepared by the Electricite du Cambodge

For the Asian Development Bank

Date received by ADB: 28 June 2024

The audited project financial statements are documents owned by the borrower. The views expressed
herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff. These
documents are made publicly available in accordance with ADB’s Access to Information Policy and as
agreed between ADB and the Government of Cambodia.
 ELECTRICITÉ DU CAMBODGE
National Solar Park Project

ADB Loan No. 3789 – CAM (COL),

ADB Loan No. 8357 – CAM (SCF) and
ADB Grant No. 0645 – CAM (EF)

Statement of Cash Receipts and Payments

and Statement of Compliance
for the year ended 31 December 2023
Project information

Project title National Solar Park Project

Project status Active

Project period 18 September 2019 to 30 June 2023 (Extended to 30 September 2024)

Sector/Subsector Electricity supply

Implementing Agency Electricité Du Cambodge

No.19, Sangkat Wat Phnom, Khan Daun Penh
Phnom Penh, Kingdom of Cambodia

Developing partners Asian Development Bank

ADB Loan No. 3789 – CAM (COL)
ADB Loan No. 8357 – CAM (SCF)
ADB Loan No. 0645 – CAM (EF)
Government of the Kingdom of Cambodia
Electricité Du Cambodge

Project costs US$26,710,000

Reporting period For the period from 1 January to 31 December

Auditors KPMG Cambodia Ltd

ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Contents
Pages

PART I FINANCIAL STATEMENTS

Statement by the Management 1

Report of the Independent Auditors 2–4

Statement of cash receipts and payments 5

Notes to the statement of cash receipts and payments 6 – 19

Appendix I: Statement of budget versus actual payments i

PART II INDEPENDENT ASSURANCE REPORT ON COMPLIANCE

Management assertion 20

Independent reasonable assurance report 21 – 23

Statement of compliance with the Financing Agreements 24 – 26

Appendix A: Schedules 3 and 4 of the Financing Agreements i–v

 PART I
Statement of Cash Receipts and Payments
for the year ended 31 December 2023
and
Report of the Independent Auditors
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments

for the year ended 31 December 2023

These notes form an integral part of, and should be read in conjunction with, the accompanying Statement.

1. Background and activities

The National Solar Park Project (“the Project”) was established under the ADB Loan Agreement
No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF),
signed on 28 June 2019 between the Asian Development Bank (“ADB”) and the Government of
the Kingdom of Cambodia (“GKC”) (represented by the Ministry of Economy and Finance).

The financing agreements became effective for implementation on 18 September 2019 and the
Project is expected to be completed by 30 June 2022. EDC has submitted the extension letter to
extend the Project closing date to 30 June 2023 and the request has been approved by the ADB
in accordance with the memorandum dated 9 December 2021. EDC has submitted the second
extension letter to extend the Project closing date to 30 September 2024 and the request has been
approved by the ADB in accordance with the memorandum dated 20 June 2023.

ADB approved the concessional loans and grant on 28 June 2019 including US$7.64 million from
ordinary capital resources, US$11 million from ADB Strategic Climate Fund and US$3 million grant
from ADB SCF. The government will provide counterpart financing of US$2.94 million to finance
taxes and duties through exemptions and EDC will provide financing of US$2.13 million for land
acquisition and resettlement costs.

Under the terms of Loan Agreement, the MEF shall on lent to EDC out of the proceeds of the Loan
under a Subsidiary Loan Agreement (“SLA”). The SLA between the MEF and EDC was signed on
13 December 2019. The Loan No. 3789 – CAM (COL), under the SLA, is repayable on semi-
annually over 32 years including grace period 8 years from 15 June 2027 to 15 December 2050,
with an interest rate of 1.65% per annum and after grace period 2.15% per annum on the amount
of Loan withdrawn and outstanding. The Loan No. 8357 – CAM (COL), under the SLA, is repayable
semi-annually over 40 years including grace period 10 years from 15 June 2029 to 15 December
2058, with an interest rate of 1.15% per annum on the amount of Loan withdrawn and outstanding.
In addition, an interest shall be 150% of the original subsidiary loan interest rate per annum on
delayed repayment of principle or repayment of interest.

The Project will support the expanded deployment of solar photovoltaic power plants in Cambodia
and address the country's need to:

(i) expand low-cost power generation;

(ii) diversify the power generation mix with an increase in the percentage of clean energy, in line
with its stated greenhouse gas emissions reductions targets; and

(iii) expand the use of competitive tenders and other global best practices in the energy sector.

6
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

1. Background and activities (continued)

The Electricité du Cambodge (“EDC”) is the Project’s Executing Agency (“EA”) and is responsible
for the overall technical supervision and execution of the Project.

The Project comprises the following outputs:

Output 1: Construction of solar park and transmission interconnection

The Project will support EDC in constructing a 100-megawatt solar power park in Kompong
Chhnang Province and a transmission interconnection system to grid substation 6 (GS6) near
Phnom Penh demand center to supply power to the national grid. The park will consist of 100
hectares (ha) of land, and associated construction works (i.e., fencing, roads, drainage systems),
to accommodate 60 MW of solar photovoltaic plant capacity. The transmission interconnection
infrastructure comprises:

(i) the 100 MW capacity (and pooling room or substation two 50-megavolt-ampere transformers
(and room for two additional transformers); switchgear; an ancillary system; and controls;

(ii) a supervisory control and data acquisition system compatible with EDC’s requirements,
advanced forecasting tools and expanded information and communication technology
applications;

(iii) a dedicated 40-kiometer 230-kilovolt double circuit overhead transmission line between the
solar park substation and GS6; and

(iv) two new bays with switchgear at GS6.

Output 2: Strengthening capacity of EDC in solar power plant construction and operation, project
design and supervision, grid integration and competitive procurement

The Project will strengthen EDC’s capacity to design, construct, and operate solar photovoltaic
plants and solar parks (including management of environmental and social safeguards issues).
The project will also strengthen EDC's capacity to procure solar photovoltaic generation capacity
through the private sector, and to adopt energy storage systems and other measures to integrate
intermittent renewable energy into the national grid.

7
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

1. Background and activities (continued)

The table below set the categories of items of expenditure to be financed out of the proceeds of the ADB Loan No. 3789 – CAM (COL), ADB
Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF), financing and the allocation of amounts of the Loans and Grant to each such
category:

ADB Loan No. 3789 – CAM (COL) ADB Loan No. 8357 – CAM (COL) ADB Grant No. 0645 – CAM (EF) Total
No. Item Amount Amount Amount
Allocated Basis for Allocated Basis for Allocated Basis for
(US$) Withdrawal (US$) Withdrawal (US$) Withdrawal (US$)
1 Works (turnkey contract) 3,150,000 18.58% of total 10,820,000 63.75% of total 3,000,000 17.67% of total 16,970,000
expenditure expenditure claimed* expenditure
claimed* claimed*
2 Consulting services 1,500,000 100% of total - Not applicable - Not applicable 1,500,000
expenditure
claimed*
3 Interest charges 160,000 100% of amount - Not applicable - Not applicable 160,000
due
4 Service charges - Not applicable 180,000 100% of amount due - Not applicable 180,000
5 Unallocated 2,830,000 Not applicable - Not applicable - 11.55% of total 2,830,000
expenditure
claimed*
Total 7,640,000 11,000,000 3,000,000 21,640,000

* Exclusive of taxes and duties imposed within the territory of the Project.

8
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

1. Background and activities (continued)

On 14 December 2021, the Project proposed and obtained approval for budget reallocation from ADB for the whole project shown in the table below:

ADB Loan No. 3789 – CAM (COL) ADB Loan No. 8357 – CAM (COL) ADB Grant No. 0645 – CAM (EF) Total
No. Item Amount Amount Amount
Allocated Basis for Allocated Basis for Allocated Basis for
(US$) Withdrawal (US$) Withdrawal (US$) Withdrawal (US$)
1 Works (turnkey contract) 2,209,483 18.58% of total 7,580,975 63.75% of total 2,101,268 17.67% of total 11,891,726
expenditure claimed* expenditure expenditure
claimed* claimed*
1A Equipment supply 3,646,027 46.84% of total 3,239,025 41.61% of total 898,732 11.55% of total 7,783,784
expenditure claimed* expenditure expenditure
claimed* claimed*
2 Consulting services 1,624,490 100% of total - Not applicable - Not applicable 1,624,490
expenditure claimed*
3 Interest charges 160,000 100% of amount due - Not applicable - Not applicable 160,000
4 Service charges - Not applicable 180,000 100% of amount - Not applicable 180,000
due
Total 7,640,000 11,000,000 3,000,000 21,640,000

* Exclusive of taxes and duties imposed within the territory of the Project.

9
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

2. Basis of accounting

(a) Statement of compliance

The statement of cash receipts and payments has been prepared in accordance with the Cash
Basis of Accounting of Cambodian Public Sector Accounting Standards (“CPSAS”).

(b) Basis of measurement

The Statement expressed in United States Dollars (“US$”) has been prepared under the historical
cost convention.

3. Significant accounting policies

(a) Fund receipts and payments

Fund receipts are defined as the fund received by the projects from donors. This is recognised
when received and recorded as gross amounts of bank charges.

Payments represents all costs paid to support the objective of the Projects and are recognised
when paid.

(b) Statement of advance account

The statement of advance account is prepared in accordance with the Loan and Grant Agreements
and is purely used to receive and pay for payments financed by the ADB loan and grant proceeds.

(c) Non-expendable equipment

The cost of non-expendable equipment is charged to the statement of cash receipts and payments
upon acquisition. The Project maintains a memorandum account for non-expendable equipment
by way of a non-expendable equipment listing and will hand them over to EDC upon completion of
the Project.

10
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

3. Significant accounting policies (continued)

(d) Interest charge

The interest charged by the ADB is a direct payment and accounted for in the statement of cash
receipts and payments as receipts with corresponding payment category.

(e) Foreign currency transactions

The Project transacts its operations and maintains its accounting records primarily in United States
Dollars (“US$”). Transactions in currencies other than US$ are converted into US$ at the rates of
exchange prevailing on the transaction dates published by the National Bank of Cambodia.

Cash and bank balances in currencies other than US$ are translated into US$ at at the open market
rates of exchange at the period end date. All foreign exchange differences are recognised in the
statement of cash receipts and payments.

(f) In-kind contribution

All in-kind contribution from the RGC and EDC to the Project is not accounted for in the statement
of cash receipts and payments. In-kind contribution is disclosed in the note to the Statement of cash
receipts and payments for information only.

11
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

4. Receipts
Cumulative
period from
Year ended Year ended 18 September 2019 to
31 December 2023 31 December 2022 31 December 2023
ADB Loan ADB Loan ADB Grant
No. 3789 No. 8357 No. 0645 Total
US$ US$ US$ US$ US$ US$
Direct payments 1,481,317 3,201,602 886,384 5,569,303 2,667,729 10,666,993

Direct payments relate to payments made by ADB directly to the suppliers, constructors and consultants on behalf of the Project and upon the request from the Project.

5. Works (turnkey contract)

Cumulative
period from
Year ended Year ended 18 September 2019 to
31 December 2023 31 December 2022 31 December 2023
ADB Loan ADB Loan ADB Grant
No. 3789 No. 8357 No. 0645 Total
US$ US$ US$ US$ US$ US$
Xian Electric Engineering Co., Ltd 845,804 2,902,046 804,379 4,552,229 2,362,898 8,673,972

Works represent the direct payments to Xian Electric Engineering Co., Ltd on procurement of plant – design, supply and installation. This amount is the advance
payment during the year. As at 31 December 2023, the unliquidated advances is US$ 7,654,846 (31 December 2022: US$3,751,976). Refer to Note 10 for details.

12
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

6. Equipment supply
Cumulative
period from
Year ended Year ended 18 September 2019 to
31 December 2023 31 December 2022 31 December 2023
ADB Loan ADB Loan ADB Grant
No. 3789 No. 8357 No. 0645 Total
US$ US$ US$ US$ US$ US$
Xian Electric Engineering Co., Ltd 332,564 295,431 82,005 710,000 - 710,000

7. Consulting services
Cumulative
period from
Year ended Year ended 18 September 2019 to
31 December 2023 31 December 2022 31 December 2023
ADB Loan ADB Loan ADB Grant
No. 3789 No. 8357 No. 0645 Total
US$ US$ US$ US$ US$ US$
Joint Venture of Newjec Inc. and
Cheang Engineering
Consultants Co., Ltd 279,434 - - 279,434 291,806 1,235,155

Consulting services represent the direct payments to Joint Venture of Newjec Inc. and Cheang Engineering Consultants Co., Ltd on the consulting services
supervision of the implementation of transmission lines and substation project.

13
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

8. Statement of disbursement
Details of statement of disbursement from ADB fund are as follows:
Cumulative
period from
Year ended Year ended 18 September 2019 to
31 December 2023 31 December 2022 31 December 2023
US$ US$ US$

ADB fund claims during the year/period

Direct payments (A) 5,569,303 2,667,729 10,666,993
Total payments made during the year/period (B) 5,569,303 2,667,729 10,666,993
Payments made out of Government Counterpart fund (C) - - -
Payments not yet claimed during the year/period (D) - - -
Initial advance remains unused (E) - - -
Total eligible expenditure claimed (F=A=B+C+D+E) (F) 5,569,303 2,667,729 10,666,993

14
ELECTRICITÉ DU CAMBODGE

National Solar Park Project

ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

9. Payments by category and financiers

ADB Loan ADB Loan ADB Grant

No. 3789 – CAM (COL) No. 8357– CAM (SCF) No. 0645 – CAM (EF) Total
Particulars
US$ % US$ % US$ % US$
Works (turnkey contract) 845,804 18.58% 2,902,046 63.75% 804,379 17.67% 4,552,229
Equipment supply 332,564 46.84% 295,431 41.61% 82,005 11.55% 710,000
Consulting services 279,434 100.00% - 0.00% - 0.00% 279,434
Interest/service charges 23,515 85.08% 4,125 14.92% - 0.00% 27,640
Total payments – for the year ended
31 December 2023 1,481,317 26.60% 3,201,602 57.49% 886,384 15.91% 5,569,303
Total payments – cumulative period from
18 September 2019 to 31 December 2023 3,221,037 30.20% 5,831,260 54.67% 1,614,696 15.14% 7,999,264
Total project costs 7,640,000 - 11,000,000 - 3,000,000 - 21,640,000
% of total project costs – for the year ended
31 December 2023 19.39% 29.11% 29.55% 25.74%
% of total project costs – cumulative period from
18 September 2019 to 31 December 2023 42.16% 53.01% 53.82% 49.29%

15
ELECTRICITÉ DU CAMBODGE

National Solar Park Project

ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

10. Advance to contractors

During the year, Project incurred the following advance transactions:

Year ended Year ended

31 December 2023 31 December 2022
US$ US$

At beginning of the year 3,751,976 1,677,887

Addition for the year (*):
Works 4,552,229 2,362,898
Liquidation:
Works (649,359) (288,809)
At end of the year (**) 7,654,846 3,751,976

(*) The advances were recorded as payments in respective payment categories in the
statement of cash receipts and payments upon incurred (Note 5).

(**) This represents unliquidated advances which maintained by way of an advance register by
management for monitoring purpose.

16
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

11. Statement of withdrawals

Withdrawal Works Equipment Consulting Interest/service

Description Date Currency Total
application No. (turnkey contract) supply services charges
ADB Loan No. 3789
A0022 Direct Payment 11-Jan-23 US$ - - 84,823 - 84,823
A0023 Direct Payment 10-Jan-23 US$ - - 28,637 - 28,637
A0024 Direct Payment 29-Mar-23 US$ 402,442 - - - 402,442
A0025 Direct Payment 25-May-23 US$ - - 69,872 - 69,872
A0026 Direct Payment 25-May-23 US$ - - 31,091 - 31,091
A0027 Direct Payment 14-Aug-23 US$ 443,362 - - - 443,362
A0028 Direct Payment 5-Dec-23 US$ - - 41,013 - 41,013
A0029 Direct Payment 5-Dec-23 US$ - - 23,998 - 23,998
A0030 Direct Payment 6-Dec-23 US$ - 332,564 - - 332,564
CAP4 Direct Payment 15-Jun-23 US$ - - - 10,090 10,090
CAP5 Direct Payment 15-Dec-23 US$ - - - 13,425 13,425
Sub-total (A) US$ 845,804 332,564 279,434 23,515 1,481,317
ADB Loan No. 8357
C0024 Direct Payment 29-Mar-23 US$ 1,380,824 - - - 1,380,824
C0027 Direct Payment 14-Aug-23 US$ 1,521,222 - - - 1,521,222
C0030 Direct Payment 13-Dec-23 US$ - 295,431 - - 295,431
CAP4 Direct Payment 15-Jun-23 US$ - - - 1,606 1,606
CAP5 Direct Payment 15-Dec-23 US$ - - - 2,519 2,519
Sub-total (B) US$ 2,902,046 295,431 - 4,125 3,201,602

17
ELECTRICITÉ DU CAMBODGE
National Solar Park Project
ADB Loan No. 3789 – CAM (COL), ADB Loan No. 8357 – CAM (SCF) and ADB Grant No. 0645 – CAM (EF)

Notes to the statement of cash receipts and payments (continued)

for the year ended 31 December 2023

12. Items not recognised in the statement of cash receipts and payments

12.1. In-kind contribution

The Project’s management has identified and calculated in-kind contribution from the RGC and EDC
to the Project based on the MEF’s guideline as follows:

Cumulative
period from
Year ended Year ended 18 September 2019 to
31 December 2023 31 December 2022 31 December 2023
US$ US$ US$

Land acquisition and

resettlement costs 32,043 229,597 2,605,370
Taxation:
Consulting services 8,263 9,369 61,199
40,306 238,966 2,666,569

12.2. Payment commitments

As at 31 December 2023, the Project had the following payments commitments:

As at As at
31 December 2023 31 December 2022
US$ US$

Contracted, but not yet paid:

Works (turnkey contract) 3,464,755 7,339,983
Equipment supplies 6,389,999 -
Consulting services 293,350 484,769
10,148,104 7,824,752

19