PHNOM PENH: Prime Minister Hun Manet (pic) announced that the groundbreaking for the Funan Techo Canal is set for Aug 5, noting that 51 per cent of the investment in the project will come from Cambodian financiers.
“I would like to declare that Aug 5, 2024, is the date of the canal groundbreaking and we don’t need to wait until the first anniversary of the seventh mandate government.
“We have already selected the location for the groundbreaking ceremony. We have prepared the materials, equipment and the means.
"Anyone who tries to spread the notion that we cannot achieve this and attempts to turn people against the project should not bother. It will only exhaust you because we are ready to move forward and make it happen," he said during the launching ceremony of a multi-purpose port in Kampot province on June 6.
The prime minister’s announcement of the exact date comes a week after he initially mentioned in a ceremony in Kampong Speu province that the groundbreaking of the canal would occur in August.
“Previously, the investment company consisted of 100 per cent foreign investors. But now I would like to confirm that this project is no longer entirely foreign-owned. Cambodians will make up 51 per cent of the financing and will participate as the majority holders of the investment.
"In this established Cambodian investment company, we have our state-owned companies, including Sihanoukville Autonomous Port [PAS] and Phnom Penh Autonomous Port [PPAP].
“These two are co-investors with another private company, with these state-owned companies being the majority holders of the Cambodian investment,” Manet said.
The prime minister also rejected claims from some commentators that the state is borrowing foreign money to invest in the project.
He explained that the project is a private initiative where private investors borrow money from banks themselves to invest in building the canal and request the rights to operate it for 50 years.
Manet noted that during this period, the government and investment companies will negotiate to ensure mutual benefits. When the period ends, the investment company will transfer the project to the government for management. This is known as a build–operate–transfer (BOT) mechanism.
He explained that the government will not spend money on the project; instead, the investment company is responsible for the costs. He stated that the venture will provide opportunities for the benefit of all, particularly in the tourism and transportation sectors. He added that provinces, as well as those bordering the Mekong and Tonle Sap rivers, will be able to use the canal waterway for transportation.
“This investment involves our Cambodian financiers’ participating in the construction, and [the government] will neither spend the state budget nor borrow loans to invest. State-owned companies will invest like private entities,” he said.
The 180-km canal will cost US$1.7 billion and take four to six years to complete.
Yang Peou, secretary-general of the Royal Academy of Cambodia, supported the announcement of the date because it avoids further analysis and “vague” comments.
“This exact date announcement puts an end to the ambiguity expressed by some analysts and politicians and sets a specific timeline for the excavation of the canal. It also marks the establishment of a great historical structure in Cambodia. After the temples, this canal is a monumental project,” he told The Post on Thursday (June 6).
“The canal will be beneficial to the Cambodian nation. When the government declares something specific, it means that this project will achieve certain goals. This is the hope of the Cambodian nation, which will be realised in the future through the specific announcement of the government,” he added. - The Phnom Penh Post/ANN
