"Funan Techo Canal Remains Stalled Amid Compensation Concerns", 4 February 2026

Construction of the nearly $1.2 billion Funan Techo Canal, expected to ramp up by late 2025, remains stalled more than a month into the new year, ...

The government says the delay comes as the construction firms, a Cambodia–China partnered venture with local companies holding a 51% stake, move to settle compensation with residents along the canal route, arguing that unresolved land disputes could disrupt work once building begins.

The stated reason for the holdup runs counter to long-standing patterns of land grabs in Cambodia, where rural communities often say they are undercompensated for development and commercial projects.

… Concerns persist, according to several affected residents …, who also observed little to no construction activity at the broken-ground site between May 2025 and early February. Political analysts say unresolved border tensions with Thailand and financial constraints may also be contributing to the delay. The government maintains construction will begin only after a large number of compensation issues are resolved.

“I think they will dig, but I don’t know when – maybe after the war [border tensions] end,” said Dim Mech, a Kandal province resident who has lived along the proposed canal route for more than two decades. “At first it was hard, not knowing where we would go or whether we’d have money to buy land, but now we don’t even think about it. This is how they make us feel.”

… After more than a year of waiting for construction and compensation, Mech said his family now hopes the project will not move forward. “It’s been too long. If it isn’t constructed, we are happy,” he said, adding that residents want proper compensation if the project proceeds. “If they pay less, there will be no results, only crying.”

… While Chinese investors hold a 49% share, Cambodian investors Phnom Penh Autonomous Port (PPAP) and Sihanoukville Autonomous Port (PAS), both publicly listed, have reportedly provided little information to shareholders about their involvement, prompting some investors to question the canal’s return potential under a build-operate-transfer model.

Civil society groups said the lack of financial transparency and slow progress is leaving residents uncertain and vulnerable.

Oum Somaly, program manager at Solidarity Actions for Community Harmonization and Sustainability at the NGO Forum, said the government should provide transparent and timely communication with affected communities…