Cambodia: Residents remain uncertain about Funan Techo Canal construction plan and compensations despite signed funded agreements with China
"Flurry of New Agreements, Yet Stakeholders and Residents Still in the Dark on Funan Techo Canal" CamboJA, 10 May 2025
Chinese and Cambodian state-owned firms inked shareholder and investment agreements for the flagship Funan Techo Canal during President Xi Jinping’s visit to Phnom Penh last month, but details on financing still remain under wraps, worrying stakeholders eyeing slim returns…
State-owned firms listed as key developers include the Overseas Cambodian Investment Corporation (OCIC), Phnom Penh Autonomous Port (PPAP), and Sihanoukville Autonomous Port (PAS), along with China Road and Bridge Corporation (CRBC), according to a CDC press release.
When contacted …, Lim Sophany – one of three directors of Funan Techo Canal Investment Co., a venture among the Cambodian state-owned firms involved – declined to disclose the company’s financial commitment, saying the information was not public before ending the call.
PPAP Chairman and CEO Hei Bavy, who signed the shareholder agreement on behalf of the investment company, did not respond to requests for comment, saying he was at a conference.
… reached out to Zhou Yong, Director General of CRBC for Cambodia, using a phone number listed in the Ministry of Commerce’s registry. A man identifying himself as a CRBC employee answered but declined to provide any details on the investment amounts.
Stephen Higgins, managing partner at Phnom Penh-based Mekong Strategic Capital, voiced concerns that publicly listed companies like PPAP and PAS – in which his firm is a major investor – are backing a large infrastructure project without informing shareholders about the potential financial impact…
In an email, Higgins also raised doubts about the project’s return potential. The canal is being developed under a build-operate-transfer (BOT) model.
… With little clarity for stakeholders, residents along the canal route are also left uncertain about their futures.
Dim Mech, a businessman who has lived along the proposed canal route since before 2000, told … he has not received any formal notice about compensation or relocation, though local authorities have already recorded his assets, including land, house, and crops. He said his business currently earns between $150 and $200 per day…