Num Pen, Cambodia – Cambodia and China have signed a $ 1.2 billion agreement for an ambitious canal project, which aims to enhance the trade skills of the Mekong River near the Fonam Pen near the Fonom Pen of Thailand, a top Cambodian government agency of the project.
The Funan Techo Canal Fund agreement was signed on Thursday during a state visit to Cambodia in Chinese President Xi Jinping, the company said in a press release. Shi returned to the country on Friday after a three-national Southeast Asian visit to Vietnam and Malaysia.
The construction of the canal was started last year 151.6 km (94 miles) but it was not cleared for the reasons soon after the groundbreaking ceremony on August 5 was closed. Cambodian Prime Minister Hun Manet at the time said that the canal would be built “whatever the cost”, this project promotes “national prestige, regional integrity and Cambodia development”.
As described as a public-private partnership agreement, the agreement was signed by the Deputy Prime Minister San Chanthol on behalf of the Cambodian Government and Ing Sunley, the private sector partner, Funan Techo Coastal-Inland Waterways Company Limited. The project is being built on a build-operat-transfer basis, Cambodian investors hold 5% of partners and Chinese investors 5%.
According to Friday’s announcement, “the canal will create a new internal waterway-maritime corridor. It will include canals excavation and ship lock, navigation and logistic infrastructure.
“As an internal waterway and an important transport infrastructure in Cambodia, the FTC project will become a new engine of national economic growth,” China Communications Construction Agency Chairman Wang Tongjhu said, the announcement. He also added that “After the completion, it will significantly reduce the extensive logistics costs in Cambodia and promote the Cambodian industry to the upper end from the standard discipline.”
The China Communication Company is a contractor to construct a project from China Road and Bridge Corporation to the coastal province Cape. A large state -owned company has faced an investigation over allegations of involvement in financial scandals. It is blacklisted by the United States for the role in the Chinese military construction and artificial islands in the South China Sea.
According to Friday’s announcement, the canal is expected to “create a direct and indirect job in Cambodia.”
Critics have raised concerns that the canal can severely disrupt Mekong Rive and its natural flood types. These obstacles can reduce the nutrient rich polygamous slopes needed to produce important rice in Vietnam in Mekong Delta, a region that retains millions of people and is a major global paddy exporter.
The signature declaration, however, states that “a strict environmental impact managed by 48 experts has confirmed the minimum environmental impact.”
It also added that the Cambodian government “has led an attempt to reduce rehabilitation with a route designed to avoid dense communities and cultural sites and” a responsible compensation and consultation process is underway. “
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