Deputy PM Assures No Adverse Impact on Vietnam as Cambodia Forecasts Canal Project to Save Nearly US$600m

• 6 May 2024
• Uncategorized
• 2027 Views

The volume of water diverted by the Funan Techo canal relative to the overall flow of the Mekong River is negligible, ensuring no adverse effects on Cambodia’s environment and neighbouring regions, including Vietnam. This affirmation comes from HE Sun Chanthol, Deputy Prime Minister and Deputy PM and First President of the Council for the Development of Cambodia in an exclusive interview with CNBC International TV, released on 1 May 2024 in response to inquiries from CNBC International regarding the potential impact of the Funan canal on water diversion from the Mekong River, particularly the concern over irrigation shortages in the river’s lower reaches, especially affecting South Vietnam’s agricultural sector.

“The concerns raised are unsubstantiated. Allow me to provide a specific statistic. Presently, the Mekong River discharges 8,000 cubic metres per second into the sea. In contrast, the projected water flow diverted by the Funan canal from the Mekong River amounts to only 3.6 cubic metres per second, representing a mere 0.06% of the total river flow. Therefore, this quantity is negligible,” remarked HE Sun Chanthol

HE Sun Chantol emphasised that the feasibility study of the Funan Canal project underwent rigorous examination by 48 national and international experts and consultants, analysing the project comprehensively from all perspectives. Through the utilisation of hydrological assessments, drone surveillance, satellite imaging, and on-site studies, it was concluded that the project would have no adverse environmental impact within Cambodia and would not extend beyond its borders, including any potential ramifications for Vietnam. These findings are internationally recognised, affirming the project’s commitment to environmental sustainability and responsible development practices.

“When discussing the 180-kilometre canal project, it’s important to clarify that we won’t be excavating the entire length. In reality, the canal will be constructed along an existing waterway that has been utilised for over 2,000 years,” explained HE Sun Chanthol.

He further elaborated that, “Our objective is to enlarge and deepen the canal, allowing ships of up to 3,000 tons to navigate from Phnom Penh to the sea in Kep.”

Upon completion, the Funan Techo canal project is poised to generate an annual revenue stream ranging from US$88 million to US$570 million for Cambodia, derived from the redirection of freight from Vietnam to canal transport, as highlighted by HE Sun Chanthol during a presentation on the project’s progress on 3 May 2024. This substantial influx of revenue could potentially explain Vietnam’s heightened reaction to the project, especially considering Cambodia’s current expenditure is approximately US$223 for each 12-metre container crossing the Mekong River to a deep-water port in the South Vietnamese Sea.

It is worth noting that presently, 67% of Cambodian goods are transported to the port of Sihanoukville via all means of transport, with exports through Vietnam constituting 33% of total exports. However, HE Sun Chanthol emphasised that upon the completion of the Funan Canal, the flow of goods to Cambodian seaports is expected to surge to 90%, while exports through Vietnam are anticipated to decline to a mere 10%.

“The 10% figure still pertains to shipping through Vietnam, as some larger vessels require access to deep-sea ports in the country, which we cannot restrict,” clarified HE Sun Chanthol.

Prek Chik Funan Techo stands as one of Cambodia’s most ambitious waterway infrastructure endeavours, boasting an investment of approximately US$1.7 billion and slated for completion over a span of four years. Championed by HE Sun Chanthol, this project promises multifaceted benefits for Cambodia, spanning geography, politics, society, irrigation, and economy, notably streamlining logistics, curtailing transportation expenses, and fostering economic growth. Scheduled to commence on 29 December 2024, the auspicious date commemorates the “Peace Day in Cambodia” observed on 29 December 1998, as per the recent sub-decree issued by the government.

• Road and Infrastructure