China and Cambodia ink transactions for large-scale canal projects have attracted attention from environmental issues
Phnom Penh, Cambodia – Cambodia and China have signed a $1.2 billion deal to fund an ambitious canal project aimed at connecting the Mekong branch near Phnom Penh to a branch near Phnom Penh, with a port on the port of Thailand, announced Friday.
The agency said in a press release that the deal to fund the Funan Techo canal was signed during a visit to Chinese President Xi Jinping on Thursday. Xi Jinping returned home on Friday after the Three Kingdoms Southeast Asia Tour, which also included Vietnam and Malaysia.
Construction of the 151.6km canal began last year, but it stopped shortly after the groundbreaking ceremony on August 5 for reasons that have not been clarified. Cambodian Prime Minister Huns said at the time that the canal would be built regardless of the cost, emphasizing that the project promotes “national reputation, territorial integrity and the development of Cambodia.”
The deal is described as a public-private partnership contract, signed by Deputy Prime Minister Sun Chanthol on behalf of the Cambodian government and by Ieng Sunly of Funan Techo Coastal Inland Waterways Ltd., a private sector partner. The project was developed based on the construction transfer foundation, with Cambodian investors holding 51% stake and Chinese investors holding 49%.
The canal will create a corridor of new inland waterway Mustangs that can handle up to 3,000 tons of vessels, according to an announcement on Friday. “It will cover the construction of canal excavation and ship locking, navigation and logistics infrastructure.
“As Cambodia’s inland waterways and important transportation infrastructure, the FTC project will become a new engine to drive national economic growth,” Wang Tongzhou, chairman of China Communications Construction Company, said in the announcement. He added: “When completed, it will greatly reduce the overall logistics costs in Cambodia and promote the Cambodian industry to the middle of the value chain.”
China Communications Construction Company is the parent company of China Highway and Bridge Company, a contractor for the construction of the project, from the Basak River to the KEP in the coastal areas. The massive state-owned company is facing scrutiny for alleged involvement in the financial scandal. It is also listed on the U.S. blacklist for the role and militarization of the U.S. in the man-made islands in the South China Sea.
According to an announcement on Friday, the canal is expected to create “up to 50,000 direct and indirect jobs in Cambodia”.
Critics raised concerns about the canal that could seriously damage the natural flood patterns of the Mekong Rive R. These damages could lead to worsening drought and reduce the nutrient powder necessary for Vietnam’s crucial rice production in the Mekong Delta, a region that maintains millions of dollars and is the world’s leading rice exporter.
However, the signing announcement stated: “The strict environmental impact assessment conducted by 48 experts confirmed the smallest environmental impact.”
It added that the Cambodian government led efforts to minimize “routes designed to avoid dense communities and cultural sites” and that “responsible compensation and consulting processes are underway.”
This article was generated from the Automation News Agency feed without the text being modified.
