China-Backed Canal Deal Raises Mekong Delta Concerns

[geovalin]

 

A newly signed deal between Cambodia and China to build a $1.7 billion canal has drawn sharp questions from regional stakeholders, amid fears over its potential impact on the fragile Mekong Delta ecosystem.

 

The Funan Techo Canal, backed by Chinese state giant CCCC with a 49% stake, is set to stretch 180 km from the Mekong Basin to Cambodia’s southern coast. Promoted as a boost for irrigation and economic development, the project has faced scrutiny over environmental risks—particularly from Vietnam, whose rice-growing delta lies downstream.

 

Despite the scale and geopolitical weight of the project, Cambodia has so far only provided “basic information,” according to the Mekong River Commission (MRC), which oversees sustainable development of the transnational river. The Commission is now urging Phnom Penh to release full feasibility and impact studies to ensure broader basin concerns are addressed.

 

Environmentalists and experts warn that diverting water from the Mekong could worsen drought and salinity in Vietnam’s delta, already suffering from upstream dam activity. The Delta is not only a vital ecological zone but also a cornerstone of Vietnam’s rice exports.

 

Cambodia insists the canal complies with the 1995 Mekong Agreement, but the MRC says the legality depends on whether the canal directly affects the river’s mainstream flow. “Guidance has been offered,” the Commission said, calling for further transparency from all parties.

 

China’s role in the project, formally confirmed during President Xi Jinping’s recent visit to Cambodia, signals a deeper geopolitical footprint in Southeast Asia’s water infrastructure. Although Xi made no public mention of the canal, a joint communique cited Chinese support based on “feasibility and sustainability.”

 

The canal’s scope appears to have shifted from its original navigation-focused design to one prioritising irrigation. Experts like Brian Eyler of the Stimson Center warn that the volume of water diverted may now be “much more than previously described.”

 

As construction plans advance, the absence of clear environmental data and regional dialogue risks turning a national infrastructure project into a flashpoint for cross-border tensions. The coming months will be critical in determining whether the canal becomes a model of cooperation—or controversy.

 

-2025-04-25