Cambodian Government Collaborates with Private Companies to Strengthen Railway Infrastructure

• Sommana Yan
• 19 February 2025
• Uncategorized
• 2411 Views

The Royal Government of Cambodia, through the Ministry of Public Works and Transport, has decided to sign a Framework Agreement with Royal Railway PLC (RRPLC) to jointly enhance and develop Cambodia’s railway system.

The signing ceremony took place on February 13, 2025, with Mr Peng Po Nea, Minister of Public Works and Transport, and Oknha Kith Meng, Chairman of the Board of Directors of Royal Railway PLC, officiating.

Both parties emphasized that this Framework Agreement marks the first step towards negotiating and signing a public-private partnership agreement. They aim to attract strategic partners with expertise and experience in the railway sector to help improve the efficiency and quality of Cambodia’s railways, aligning with the Royal Government’s vision.

Additionally, the agreement focuses on fortifying Cambodia’s railway infrastructure and ensuring a sustainable transportation solution for the future.

According to the Ministry of Transport, the framework agreement aligns with the Prime Minister’s High Consensus dated January 31, 2025, which outlined the following principles:

Prepare a Framework Agreement (FA) as the basis for negotiations to establish a new public-private partnership contract under the Build, Operate, and Transfer (BOT) model.

Ensure the sustainability of railway operations.

Once a new strategic partner is selected, the Royal Government, Royal Railways, and the new partner will discuss forming a Joint Venture (JV) to negotiate the next steps in establishing a new concession agreement under the PPP Contract format.

Conduct an audit of Royal Railway Company, covering assets, operations, finances, and other relevant areas as necessary.

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