The Cambodian government has given the go-ahead for a Chinese company to conduct feasibility study into building two hydropower dams on the Sre Pok River, English-Khmer language newspaper the Cambodia Daily said Thursday.

"It is just feasibility study to see whether or not they can do it," Minister of Industry, Mines and Energy Suy Sem was quoted as saying.

A memorandum of understanding was signed with the company in June to study the possibility of building the two dams, but the specific locations can't be told, said the minister.

"It is a big benefit to have cheap electricity because gasoline is so expensive," he added.

The agreement with Guangxi Guiguan Electric Power Co. Ltd. commits it to reviewing and analyzing the effects of the projects on the social, environmental and ecological conditions of the area.

The Sre Pok River runs through northeastern provinces of Ratanakkiri and Stung Treng.

Source:Xinhua