Cambodia & China Sign Landmark Agreement for USD 1.156 Billion Funan Techo Canal Project

• Sommana Yan
• 19 April 2025
• Uncategorized
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In a significant development for Cambodia’s infrastructure and water management, the Cambodian government and China have officially signed a major agreement for the USD 1.156 billion Funan Techo Canal Project. This ambitious initiative seeks to enhance water resource management and foster economic growth by improving connectivity among several provinces.

The agreements were signed by HE Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia, alongside Mr. Wang Tong Zhou, President of China Communications Construction Company (CCCC). This milestone marks a pivotal step forward in developing the Funan Techo Integrated Water Resources Management Project.

Included in the signing were five key agreements:

1. Public-Private Partnership Agreement between the Royal Government of Cambodia and Funan Techo Coastal-Inland Waterway Co., Ltd.
2. Shareholders’ Agreement
3. Investment Agreement
4. Engineering, Procurement, and Construction Agreement
5. Operation and Maintenance Agreement

The 180-kilometre-long Funan Techo Canal, which officially commenced construction on 5 August 2024, is set to traverse four provinces: Kandal, Takeo, Kampot, and Kep. Designed to accommodate vessels weighing up to 3,000 DWT, the canal will involve various infrastructural works, including river rehabilitation, canal dredging, a hydrological station, a riverbank protection dam, a slipway, and other supporting infrastructure vital for navigation. (Read more)

This project aims to improve water resources management, stimulate economic growth, and enhance connectivity across Cambodia’s coastal and inland provinces. Stakeholders are optimistic that the Funan Techo Canal will catalyse development, positioning Cambodia strategically in the region.

As the construction proceeds, the nation looks forward to the long-term benefits this partnership with China will bring to its infrastructure landscape and overall economic resilience.

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