The Governments of Cambodia and China have finalised a USD1.2 billion financing deal to build the long-delayed Funan Techo Canal in Cambodia.
The 151.6 km canal will link the Mekong River near Phnom Penh to the Gulf of Thailand, forming a new inland waterway capable of handling 3,000 DWT vessels. The project, scaled down from its original USD1.7 billion and 180 km plan, will be built via a public-private partnership (PPP) with Cambodia-based entities holding 51 per cent and Chinese investors 49 per cent. The China Road and Bridge Corporation will undertake construction.
The Cambodian government expects the canal to create up to 50,000 jobs, enhance transport logistics, and strengthen economic ties with China. However, environmentalists warn the project may disrupt Mekong flood patterns and affect agriculture in Vietnam’s Mekong Delta.
