Context | Objectives | Expected Results |

Rural electricity services play a key role in rural development because the access to affordable, reliable and safe electricity can greatly improve food, education and health services, as well as improving opportunities for income generation. This is particularly true for Cambodia and Lao PDR, after decades of destructive war.

Cambodia has a population of about 13.5 millions, of which 84% live in rural area. In the rural areas of Cambodia, the generation and distribution of electricity is mainly left to small private entrepreneurs because the governments need to focus limited resources on urban areas. Consequently this important rural service is usually provided by small family businesses (commonly used name of Rural Electrification Enterprise REE in Cambodia) with very limited technical and managerial capacity, with no access to support services or advice, and with very limited access to financial services needed to upgrade their operations.  The environment in which these small businesses operate is increasingly difficult due to rising fuel prices (imported diesel fuel), and increasing pressure from government to improve standards, quality and reduce tariff.

The Royal government of Cambodia has formulated its policy in term of rural electrification as a part of Cambodia’s wider rural transformation and poverty alleviation goals. It put a high target for rural electrification to reach 70% of Cambodia rural population within 30 years from now.