MME Denies Alleged Agreement with Vietnamese Company for Mekong Sand Dredging

• 20 February 2024
• Local News
• 1547 Views

Ung Dipola, spokesman for the Ministry of Mines and Energy in Cambodia, vehemently rejected recent claims made by Vietnamese newspaper VN Express regarding a purported agreement for sand dredging on a Mekong River segment. Mr Ung clarified the stance in an interview with French newspaper RFI, published on 16 February 2024.

The controversy unfolded following a 7 February report by VN Express, suggesting that Cambodia had endorsed an agreement with the TNT Group, permitting the import of sand from Cambodia for its infrastructure projects. The report indicated an approval for dredging hundreds of millions of cubic meters from a Mekong River section.

Mr Ung refuted these claims, emphasizing that no such agreement exists, thus contradicting the VN Express report. The Vietnamese news outlet also mentioned Vietnam’s interest in Cambodian sand and gravel to address gaps in its national highway development projects. This interest was allegedly expressed by the TNT Group in a proposal to the Vietnamese Prime Minister in October 2023.

Mr Ung clarified the process, explaining that, “companies licensed for sand business in Cambodia have the right to sell the collected sand to any interested party, whether domestic or foreign. The ministry welcomes countries expressing interest in purchasing sand from Cambodia.”

Contrary to the VN Express report, Mr Ung reiterated that the sale of sand is conducted through licensed entities without favoritism. The report indicated that Vietnam was exploring Cambodia’s resources to address its infrastructure needs.

Currently, three companies hold licenses from the Ministry of Mines and Energy for sand exploitation in the country. In 2023, Cambodia anticipates substantial revenues from the sand business, including royalty tax and export tax, exceeding US$40 million for over 10 million tons of sand.

It should be remembered that in the past, the Ministry of Mines and Energy has also claimed that Cambodia has not exported sand even abroad per cubic meter since 2017, with all sand dredging being used only for construction. Local only. (Read more)

• Business and Market
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