Mass Transport Systems? The Future for Phnom Penh?

• 31 December 2015
• Property Focus
• 2679 Views

Phnom Penh is growing, but is the transport system that keeps the city moving, much like blood through the arteries and veins of a body, keeping up with the pace?

If a city ceases to be able to move people and goods from point A to B, it no longer performs one of its major functions. Jakarta has experienced rapid growth without proper investment in transport infrastructure, inhibiting movement of people, the functioning of businesses and the satisfaction or wellbeing of its inhabitants and visitors.

Phnom Penh is estimated to have a population of 2 million people. Currently 80 percent of the population live in rural areas. The United Nations reports that when a country reaches middle income status it is characterised by an urbanisation rate of 50 percent. If the population of Cambodia is currently 14 million, and growing at 2 percent per annum then in 15 years the population could be close to 20 million. If half the population live in urban areas, mostly concentrated in Phnom Penh, then we could see a doubling or tripling of the population of Phnom Penh by 2030. Of course a lot depends on the speed of growth, and the development of the manufacturing and service sectors versus the agricultural sector.

The Royal Government of Cambodia has made road building a priority, but much of the work has been in rural areas. The logic to develop the rural areas to release the pressure on urban areas is a sound one; however, patterns of urban development show us that people are naturally drawn to urban areas to seek better wages, access to education, health and housing. It is often a hope for a better life rather than a reality.

Vietnam is building a mass transport Metro system in Hanoi and HCMC. The task is vast and they have the advantage of a centrally planned economy and greater resources. How will Phnom Penh deal with this challenge?

WHAT KIND OF MASS TRANSPORT? WHO PAYS?

In the past, the Japanese through JICA have provided the majority of Overseas Development Aid (ODA) to improve roads and drainage in Cambodia. Now, China is providing cash through long term low interest loans. However, the projects are piecemeal and lack the scale to resolve the entirety of the problem. The ADB and the government are encouraging Public Private Partnerships (PPP’s) as a way forward.

WHAT IS A PPP?

PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project.

The problem with PPP’s is that private companies are not always guaranteed an economic return and the difficulties of doing business can make such a venture seem too risky.

The issue of transportation is of the highest importance to Phnom Penh. If it is not dealt with it could cause real and lasting problems for the future of this city and the development of the country.