PM Orders All Provincial Governors to Stop ‘Build Now Pay Later’ Deals With Construction Firms

• 3 January 2022
• Local News
• 1510 Views

Cambodian Prime Minister Samdech Hun Sen has ordered all provincial governors to stop creating debts with private construction companies through a ‘build now pay later’ method that allows private firms to build infrastructure first and then pay later without going through any bidding procedure or approval from the Ministry of Economy and Finance.

PM Hun Sen added that, for completed projects, the debt has to be repaid for 20 years and must be paid by the provincial administration not the government. Meanwhile, contract projects that haven’t yet started must be voided.

PM Hun Sen gave the order during the ground-breaking ceremony of the NR48 renovation on Monday 3 January.

“Some governors have been making a ‘build now pay later deal’ with construction firms, without bidding or approval from the central government, and created a large debt to the government. The government does not recognise this debt,” said PM Hun Sen.

“This method must be stopped. For the debt, each provincial governor must pay by themselves for 20 years, not under the responsibility of Cambodia’s government. For new projects that haven’t started, they must be cancelled,” he added.

Samdech Hun Sen also warned construction companies to stop doing the ‘build now pay later’ deal, or be blacklisted by the government.

• Laws and Regulation
• Notice and Measurement