The nation and China have signed a US$1.2bil (RM5.28bil) 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.
The deal to fund the Funan Techo Canal was signed on Thursday during the state visit to Cambodia of Chinese President Xi Jinping, the agency said.
Construction of the 151.6km canal began last year but was halted shortly after the Aug 5 groundbreaking ceremony for reasons that were not made clear.
Cambodian Prime Minister Hun Manet said at the time that the canal will be built “no matter what the cost”, emphasising that the project promotes “national prestige, the territorial integrity and the development of Cambodia”.
Described as a public-private partnership contract, the deal was signed by Deputy Prime Minister Sun Chanthol on behalf of Cambodia’s government, and by Ieng Sunly of the Funan Techo Coastal-Inland Waterways Company Ltd, the private sector partner.
“The canal will create a new inland waterway-maritime corridor capable of handling vessels up to 3,000 deadweight tons,” according to Friday’s announcement. It will encompass canal excavation and the construction of ship locks, navigation and logistics infrastructure.
According to Friday’s announcement, the canal is expected to create “up to 50,000 direct and indirect jobs in Cambodia”.
Critics have raised concerns that the canal could severely disrupt the Mekong River’s natural flood patterns. These disruptions could lead to worsening droughts and a reduction in the nutrient-rich silt essential for Vietnam’s vital rice production in the Mekong Delta, a region that sustains millions of people and is a major global rice exporter.
The signing announcement, however, stated that “A rigorous Environmental Impact Assessment, conducted by 48 specialists, confirmed minimal environmental impact.” — AP
