China and Cambodia agree on financing for a 94-mile canal linking the Mekong to the Gulf of Thailand

A Cambodian national flag is displayed during a groundbreaking ceremony of China-funded Funan Techo canal that will connect the country's capital Phnom Penh with Kep province on the country's south coast, Prek Takeo village, Kendal province, Cambodia, Monday, Aug. 5, 2024. - AP

PHNOM PENH: Cambodia and China have signed a US$1.2 billion deal to finance an ambitious canal project that aims to boost trade efficiency by linking a branch of the Mekong River near Phnom Penh to a port on the Gulf of Thailand, the Cambodian government agency heading the project announced Friday (April 18).

The deal to fund the Funan Techo Canal was signed Thursday during the state visit to Cambodia of Chinese President Xi Jinping, the agency said in a news release. Xi returned home Friday after a three-nation South-East Asian tour that also included Vietnam and Malaysia.