Cambodia to feel an energy crunch, but growth to remain stable: report
Energy demand in Southeast Asia is expected to increase by more than 80 per cent by 2035, fuelling some $240 billion in oil spending, a new report from the International Atomic Energy Association (IAEA) shows. In its “Southeast Asia Energy Outlook” published yesterday, the Paris-based IAEA estimates that oil imports will climb to more than five million barrels per day, doubling dependency and making the region the world’s fourth-largest recipient after China, India and the EU. The increased reliance on oil in the region “will impose high costs and leave it more vulnerable to potential disruptions”, the report said, suggesting that for Association of Southeast Asian Nations (ASEAN) member states like Cambodia, which imports all its oil and has yet to tap natural resources, the price shocks could hit hard. The IAEA also noted that between 2002 and 2011, the number of people with access to electricity in Cambodia doubled. But that still leaves nine million, or 66 per cent of the population, without access. Thirteen million Cambodians, a staggering 88 per cent of the population, are relying on traditional biomass methods for cooking, according to the IAEA report. On the same day of the energy association’s gloomy outlook, the Asian Development Bank released an upbeat forecast for growth in Cambodia, keeping the rate steady at 7.2 per cent. … According to the ADB outlook, garment and footwear exports to the US and the EU reached $2.3 billion in the first six months, an 11.3 per cent year-on-year increase. Milled rice exports doubled to $122 million, while construction project approvals totalled $1.9 billion. The tourism sector saw a 19.1 per cent year-on-year increase, with 2.1 million visiting Cambodia from January to June. The ADB forecasts the whole service sector will grow by about seven per cent this year.
Anne Renzenbrink
http://www.phnompenhpost.com/business/cambodia-feel-energy-crunch-growth-remain-stable-report
