Phnom Penh Water Supply Authority (PPWSA) records revenue up 25 pct last year

PHNOM PENH, Feb. 20 — The listed Phnom Penh Water Supply Authority (PPWSA) earned total revenues of 36.9 million U.S. dollars in 2012, up 25 percent year-on-year, according to the firm’ s unaudited financial statement on Wednesday.

The report said that the firm’s net income after tax was 8.56 million U.S. dollars last year, a 39 percent rise from 6.16 million U.S. dollars in a year earlier.

Speaking during the 1st annual meeting of the PPWSA on Wednesday, the firm’s chairman Meng Saktheara said the remarkable growth in revenue was attributed to good management and increase in water supply to customers.

The firm predicted that it would make revenue of about 37.5 million U.S. dollars in 2013.

The PPWSA is a state-owned enterprise. It is the first and only enterprise that listed on the Cambodian Securities Exchange, which was launched trading in April last year.

By  Jane B. Hatcher  |   21 February 2013  |   Xinhua

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Banking in Laos a thriving business

The number of banks setting up in Laos has been increasing recently, reflecting the growth in the banking business here as the country’s economy expands.

The growth rate of Banque Franco-Lao Ltd (BFL), a joint venture between the BRED Group and Banque pour le Commerce Exterieur Lao Public (BCEL), reportedly doubled between 2011 and 2012 and now expects to grow by 50 percent in 2013.

CEO of BRED Group, which is also called Banque Populaire, Mr Olivier Klein and his team visited Vientiane last week to look for more business opportunities.

BFL now has 113 employees and 13 branches in Vientiane, Pakxe, Luang Prabang and Savannakhet and will extend its network this year to 25 branches throughout the country.

“We are happy that we are doing very good business here,” said Mr Klein. “This is my first visit here and we want to see what more we can do in Laos in the future.”

BRED developed its activities in Laos in 2010 through the creation of BFL with BCEL.

“We had a good partner here and were confident in the economy, so we decided to set up the bank. We chose this country as we feel comfortable with it and are doing well,” he added.

“The Lao government’s policy on investment is also encouraging and we have good support from the people here.”

“We are here for long term growth, so we wish to create trust by doing our best,” Mr Klein added.

“When we have established a successful profile here we might look at extending our business into neighbouring countries like Thailand and Vietnam.”

Mr Klein said the bank aims to attract customers by stressing the importance of good service. “Banking products and technology are similar amongst most banks, but better service can make us different.”

BFL managing director Mr Guillaume Perdon said the bank is not only focused on French nationals and Europeans, it takes good care of all its clients of which about 80 percent are Lao.

“We also try to help Lao SMEs. We review their business plans in order to provide loans instead of demanding a property deposit.”

BRED Banque Populaire deputy chief executive officer, Mr Yves Jacquot, said that even though there are more banks in Laos, the competition is less strong compared to neighbouring countries. The Lao economy also keeps growing, so there are more op portunities for us to grow.”

BFL is developing a retail bank based on the experience of the leading Lao bank, BCEL, as well as the dynamism of Laos, which is located in the heart of an economic growth area and is now a member of the World Trade Organisation. BRED Group also develops specific services for the Lao community in France.

Confident in the Lao economy and BCEL management, BRED deepened its partnership in 2011 through the purchase of a 10 percent stake in BCEL, which ensures active cooperation between the two institutions, especially in training and IT.

BRED, the first regional bank with BPCE, France’s second-largest banking group, is a cooperative bank founded 94 years ago, with the aim of financing the local economy.

18 February 2013  |   Vientiane Times

Cambodia unveils project to promote biomass-based energy generation

The Cambodian Ministry of Industry, Mines and Energy has unveiled a $5.6m project to promote the development biomass energy generation in the country.

The four-year project will offer both financial and technical support to implement biomass-based renewable energy projects in five of the country’s industrial sectors.

National project coordinator Chea Chan Thou, the sectors include food processing, brick kiln, rice milling, rubber manufacturing and garments.

“Under the project, we will provide sustained transfer of efficient, cost effective and environmentally friendly biomass- fuelled energy technologies to those sectors in order to reduce global environmental impact from greenhouse gas emissions,” Thou was quoted by Global Times as saying.

Industry, Mines and Energy Minister Suy Sem further remarked that with demand for energy in the industry sector growing rapidly, industries needed to consider environmental protection.

Sem added that the project aids in controlling production costs while cutting down greenhouse gas emissions.

Global Environment Fund (GEF) and the United Nations Industrial Development Organization (UNIDO) have extended their support for the project.

By EBR Staff   |   14 February 2013  |   Energy Business Review

Garment Firm To List On CSX

The Taiwanese-owned garment company Grand Twins International (Cambodia) Plc says it intends to list on the Cambodia Securities Exchange (CSX) next month, in a boost for the Kingdom’s nascent stock market.

Phnom Penh Securities (PPS), an underwriter for Grand Twins International (GTI), said yesterday the company would offer 12 million shares at $0.25 a share.

“The issuer will use the proceeds of this initial public offering to invest in new equipment and manufacturing facilities in order to benefit from the rapid growth in demand,” PPS said.

The CSX officially began trading with only one company, the state-owned Phnom Penh Water Supply Authority, which listed in mid-April last year.

7 February 2013  |   The Phnom Penh Post

Mining group Vinacomin to raise $120 mln in dong bonds (Reuters)

State mining group Vinacomin plans to issue bonds on domestic markets to raise 2.5 trillion dong ($120 million, it said in a statement on Wednesday.

The five-year bonds, with a face value of 1 billion dong each, would carry a coupon of 14.5 percent for the first year and mature on Jan. 18, 2018, the Hanoi-based unlisted group said.

From the second year the annual coupon will be the average of 12-month dong deposit rates offered by four major banks in Vietnam plus 3.6 percent, Vinacomin said.

ANZ Bank Vietnam and VietinBank will act as the issuing agent and consultant for the issue, the second tranche of a Vinacomin’s bond first issued in last year.

The group raised 500 billion dong in July 2012 via the first tranche of the five-year dong bonds, also with an annual coupon of 14.5 percent for the first year and similar terms for remaining years.

In November 2012 Standard& Poor’s Ratings Services cut its long-term credit rating on Vinacomin to ‘B+’ from ‘BB-‘, with stable outlook, citing a weakening financial risk profile due to high spending and falling profitability in the coal business.

Vinacomin will use the proceeds to fund its projects, it said.