Cambodia signs eight deals with China at BRF, including $1.7 billion canal project

Attending the Belt and Road Forum, Cambodian Prime Minister Hun Manet witnessed the signing of eight Memorandums of Understanding with China, bringing the total number of agreements between the two countries to 23 since mid-September this year, including the $1.7 billion Funan Techo Canal project.

Campuchia ký 8 thoả thuận với Trung Quốc tại BRF, bao gồm dự án kênh đào 1,7 tỷ USD

Cambodian Prime Minister Hun Manet shakes hands with Chinese Premier Li Qiang at the signing ceremony of agreements on October 17, 2023. (Source: CamboJA.News)

During his second visit to China and participation in the Belt and Road Forum (BRF), Cambodian Prime Minister Hun Manet witnessed the signing of eight Memoranda of Understanding (MoUs), bringing the total number of agreements between the two countries to 23 since mid-September this year.

In the newly signed agreements between the two sides, including the framework agreement on the Funan Techo Canal project, the China Road and Bridge Corporation (CRBC) will be allowed to conduct in-depth studies on all aspects of the project within eight months.

The Funan Techo Canal, projected to be 180km long, will pass through the Cambodian provinces of Kandal, Takeo, Kampot, and Kep. The project, approved by the Cambodian government in May, is estimated to cost approximately US$1.7 billion and take four years to complete. This is the first logistics project connecting the Mekong River within Cambodian territory to the sea, aiming to expand Cambodia's maritime transport potential.

Cambodian Deputy Prime Minister and Chairman of the Inter-ministerial Committee for Research and Implementation of the Tonle Bassac Waterway and Logistics Project, Sun Chanthol, stated that this project is a significant step forward in Cambodia's transportation sector.

The Cambodian Ministry of Public Works and Transport studied the project in two phases: a preliminary study lasting 14 months and a feasibility study lasting 12 months.

The project will help Cambodia reduce transportation time and distance, create a commercial area and multiple ports to develop logistics, and expand agricultural , irrigation, aquaculture, tourism, and livestock development areas for 1.6 million people living along the canal.

Former Cambodian government spokesman Phay Siphan said the waterway would reduce the shipping distance by more than 69 km from Phnom Penh Autonomous Port to Sihanoukville Autonomous Port via Cai Mep Port in Vietnam, as well as 135 km from Phnom Penh Autonomous Port to Kampot International Port.

Over the past 10 years, numerous achievements have stemmed from cooperation within the framework between Cambodia and China, including the development of the Sihanoukville Special Economic Zone, the Phnom Penh-Sihanoukville Expressway, the new Siem Reap-Angkor International Airport, and the Phnom Penh-Bavet Expressway.

Cambodian economic analyst Ky Sereyvath told CamboJA that China's BRI investment in Cambodia over the past 10 years has seen significant infrastructure development and economic growth.

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