Asiatic Group subsidiary extends Cambodian energy contract

A UNIT of Catalist-listed engineering group Asiatic Group (Holdings) will keep on supplying power to a state-owned Cambodian electricity company, in an extension inked and announced on Thursday.

Indirect subsidiary Colben Energy (Cambodia), which is 85 per cent-owned by Asiatic, has extended a power purchase agreement with Electricite Du Cambodge until Apr 30, 2022.

Under the amended agreement, it also tweaked the minimum amount for purchase, down to 60 per cent of contracted capacity, from 65 per cent before.

Colben Cambodia's contract to supply power from two 10-megawatt plants in Phnom Penh and Sihanoukville began in June 2005 and was slated to run out on Apr 30, 2019.

The changes to the power purchase agreement should have a positive material effect on the earnings or net tangible assets per share for the year to March 31, 2020, said Asiatic's board.