Cambodia economy gets boosted with US$2.7 billion airport investment

• 11 September 2019
• Local News
• 6703 Views

Along with steady economic growth, Cambodia needs billions of dollars in investment to improve its aviation sector to help facilitate trade as well as accommodate the 15 million air passengers expected to enter the country by 2030.

While improving the aviation sector is part of the government’s plan to push the country to become an upper-middle-income economy by 2030, Cambodia over the past few years, has attracted more than US$2.7 billion airport investment across major cities with more projects set to be in the pipeline.

According to the figures from the government’s State Secretariat of Civil Aviation (SSCA), the aviation sector generates about 1.7 million jobs directly and indirectly; about 20% of Cambodia’s total working population. In terms of economic benefit, the sector generates US$2.7 billion directly and indirectly to the country, an equivalent to about 17% of the country’s GDP.

VINCI Airports, the operator of the three airports currently operating in Cambodia (Phnom Penh, Siem Reap, Sihanoukville) has invested US$100 million to expand the three airports capacity which accommodated up to 10 million passengers in 2018. However, the country needs more airports with bigger capacity to respond to the growing numbers of passenger and cargo.

With such demand, three international airport projects- through public-private partnership (PPP)- located in Kandal, Siem Reap, and Koh Kong are being invested in by different Chinese firms with a total investment capital of more than US$2.6 billion.

The US$1.5 billion investment by the Overseas Cambodia Investment Corporation (OCIC) will oversee construction of Phnom Penh New Airport on 2,600 hectares of land in Kandal Province while Angkor International Airport Investment (Cambodia) Co., Ltd, is set to begin construction of its US$900 million Siem Reap Angkor International Airport in 2019.

In addition, the US$20 million Dara Sakor International Airport in Koh Kong Province as part of the Dara Sakor Seashore Resort owned by Chinese firm Union Development Group (UDG) is set to finish construction in 2020.

As part of the government’s five years plan (2018-2023) to develop airport infrastructure and air traffic management systems using more than US$3.7 billion investment, Mr Sin Chansereyvutha, spokesman for the SSCA said that the three airport projects in Koh Kong, Mondulkiri, and Poi Pet are now undergoing feasibility studies.

Although details of the three projects have yet to be disclosed, construction will likely take place in the former airport each province holds.

 

• Projects Development
• Economy and Finance