CamBodia To Benefit From New China-AsEan Building Club

• Proeksa Meas
• 31 December 2015
• Uncategorized
• 1640 Views

Cambodia will get billions of dollars in loans to finance various projects after it joined the China-ASEAN Construction Industry Cooperation Committee— a new building group established in late May this year.

In line with its foreign policies such as One Belt and One Road, the Silk Road Economic Belt, and the 21st Century Maritime Silk Road, China initiated and established the new China-ASEAN club in late May this year in Jiangsu Province, Nantong City.

Cambodia expects to receive up to $1 billion in loans this year from the fund the committee plans to use to support its ASEAN member states, said Oknha Hann Khieng, Vice-Chairman of the Cambodia Constructors Association (CCA) that enrolled on behalf of Cambodia.

The loans are for any construction-related projects including green and renewable energy projects proposed by the Cambodian government or local companies which are the members of the China-ASEAN Construction Committee, according to Oknha Hann Khieng.

Among the loans earmarked for Cambodia, $60 million has already been spent on a hydro-power dam project in Strung Treng Province. The remaining funds will finance various projects including an express train project that will run across Cambodia from Phnom Penh to Strung Treng province via Bat Doeng commune, Kampong Speu, Kampong Cham and Kratie provinces.

Oknha Hann Khieng explained that the fund will also help complete the remaining segments of the 386km of the northern railway line, and the middle ASEAN Highway that will link Thailand to Vietnam across Cambodia by expanding National Road No. 5 and No. 1. Another portion of the fund will finance other different projects such as the development of the infrastructure for a deep seaport for crude oil and refined product transportation.

Based on the club’s statutes, the committee will allow for 50 member companies for the first batch with 20 Chinese companies and 30 companies from ASEAN member states (3 firms for each country). So far, only Cambodia, Malaysia, Brunei Darussalam, and Thailand are members, while the remaining ASEAN states are still considering it.

The China-ASEAN Construction Industry Cooperation Committee is a non-governmental and non-profit business organization for the China-ASEAN construction industry. It was established and is being led by the China-ASEAN Business Council and the China-ASEAN Business Association which are jointly responsible for monitoring the committee.

The club has two co-chairs. One from Chinese side and another from the ASEAN side. They also have two Chinese Executive Presidents and 9 Executive Presidents from each ASEAN Country (except for the country holding the chair).

The committee’s Chinese secretariat is based in the Nantong Construction Industry Association and works under the chairman on the Chinese side and the executive president. The team will designate a secretary-general for the Chinese side.

While Brunei Darussalam has been appointed as the co-chair for the ASEAN side this year, Cambodia will be appointed as the co-chair next year. Cambodia also joined the China-ASEAN Building Materials Cooperation Committee last year and was appointed as the co-chair for the ASEAN side.