Cambodia, China Seal $1.2bn Deal for Strategic Canal Project

Ministry of Information

PHNOM PENH — Cambodia and China have signed a landmark $1.2 billion agreement to develop the Funan Techo Canal, a major infrastructure project aimed at transforming Cambodia’s transport and logistics landscape.

The deal was inked on 17 April during Chinese President Xi Jinping’s state visit to Cambodia, in the presence of key Cambodian leaders including Prime Minister Hun Manet and Senate President Hun Sen. The project reflects deepening ties between the two nations and a shared strategic vision.

Stretching over 150 kilometres from the Bassac River near Phnom Penh to Kep province on the coast, the canal will create a vital inland waterway capable of handling vessels up to 3,000 deadweight tons. It’s billed as a multi-purpose initiative spanning trade, agriculture, water management, and climate resilience.

Deputy Prime Minister Sun Chanthol hailed the project as a “modern revival of a historic route” and a “symbol of cooperation” between nations. He signed the public-private partnership (PPP) contract on behalf of Cambodia, while Chinese state-owned China Communications Construction Company (CCCC) leads the project’s delivery.

Mr Wang Tongzhou, Chairman of CCCC, called the canal a “new engine” for Cambodia’s economy. Once completed, it’s expected to significantly lower logistics costs and support the country’s ambition to move up the industrial value chain.

Five key agreements were signed, including investment and operation deals, engineering procurement contracts, and a shareholders' agreement—cementing long-term collaboration between Cambodian authorities and Chinese firms.

Chinese Ambassador Wang Wenbin stressed that China “fully recognises Cambodia’s needs” and is committed to sustained support for the project, which aligns closely with Beijing’s Belt and Road Initiative.

With construction poised to reshape Cambodia’s connectivity and economic potential, the Funan Techo Canal stands as a bold step toward regional integration—bridging past and future through 21st-century infrastructure.

-2025-04-21