Cambodian PM meets Chinese delegation as landmark agreement for Funan Techo Canal project is signed

Chairman of the construction company Wang Tongzhou said that as an inland waterway and important transport infrastructure in Cambodia, the Funan Techo Canal project could become a new engine driving national economic growth.

The project is being developed under a build-operate-transfer model in accordance with Cambodia's PPP Law. Cambodian investors hold a 51 percent equity stake, ensuring majority national ownership, while Chinese investors hold 49 percent. The project companies include Cambodia's Overseas Cambodia Investment Corporation, Phnom Penh Autonomous Port, and Sihanoukville Autonomous Port, alongside China Road and Bridge Corporation.

According to Cambodian companies, the canal is expected to create up to 50,000 direct and indirect jobs in Cambodia, significantly reduce logistics costs and shorten trade routes and boost agricultural productivity, expand irrigation, improve access to international markets, and stimulate tourism and industrial development along the route, said the news agency.

A rigorous environmental impact assessment, conducted by 48 specialists, confirmed minimal environmental impact, besides, there are no national nature reserves along the route. The news agency said the Cambodian government has led efforts to minimize resettlement, with a route designed to avoid dense communities and cultural sites. A responsible compensation and consultation process is underway.

The Cambodian side has stressed that the canal is a civilian infrastructure project, strictly governed by Cambodian law. The project also aligns with the 1995 Mekong Agreement and is fully compliant with relevant procedures of the Mekong River Commission.