Cambodia and China Commit to $1.2-Billion Canal Megaproject
A 150-kilometre canal linking the Mekong River to the Gulf of Thailand is set to be built after a financing agreement was signed between Cambodia and China
Cambodia and China have signed a $1.2-billion financing agreement for the construction of a 150-kilometre canal that will link a branch of the Mekong River near Phnom Penh to a port on the Gulf of Thailand.
The project, known as the Funan Techo Canal, is expected to create up to 50,000 direct and indirect jobs in Cambodia.
The canal will be financed through a public-private partnership, with Cambodian investors holding a 51% stake and Chinese investors 49%.
Construction of the canal began last year but was halted shortly after the groundbreaking ceremony due to uncertainty over financing.
The project has been scaled back from its original estimated cost of $1.7 billion and length of 180km to 151.6km.
China Road and Bridge Corporation, a subsidiary of state-owned China Communications Construction Company, is the contractor for the project's construction.
The canal is expected to create a new inland waterway-maritime corridor capable of handling vessels up to 3,000 deadweight tons, encompassing canal excavation and the construction of ship locks, navigation and logistics infrastructure.
Critics have raised concerns that the canal could disrupt the natural flood patterns in the Mekong River, potentially leading to worsening droughts and a reduction in nutrient-rich silt essential for rice production by Vietnam in the Mekong Delta.
The project, known as the Funan Techo Canal, is expected to create up to 50,000 direct and indirect jobs in Cambodia.
The canal will be financed through a public-private partnership, with Cambodian investors holding a 51% stake and Chinese investors 49%.
Construction of the canal began last year but was halted shortly after the groundbreaking ceremony due to uncertainty over financing.
The project has been scaled back from its original estimated cost of $1.7 billion and length of 180km to 151.6km.
China Road and Bridge Corporation, a subsidiary of state-owned China Communications Construction Company, is the contractor for the project's construction.
The canal is expected to create a new inland waterway-maritime corridor capable of handling vessels up to 3,000 deadweight tons, encompassing canal excavation and the construction of ship locks, navigation and logistics infrastructure.
Critics have raised concerns that the canal could disrupt the natural flood patterns in the Mekong River, potentially leading to worsening droughts and a reduction in nutrient-rich silt essential for rice production by Vietnam in the Mekong Delta.
