"Funan Techo Canal Moves Ahead With Chinese Financing, But Compensation Lags", 10 August 2026

Two years after Cambodia broke ground on the Funan Techo Canal, many families living along its route say they are in limbo due to compensation delays and lost livelihoods, even as Cambodia secured fresh Chinese financing for the US$1.2 billion project…

For nearly two years, details about how the project would be financed has been scarce, fueling uncertainty over funding for one of the country’s largest infrastructure projects. That changed in late July, when the government made an announcement that China approved a concessional loan and grant package for the canal, marking Beijing’s first official financing commitment since construction began.

Notwithstanding official events and funding announcements, impact from the project is already being felt by communities along the canal route. Interviews with affected residents reveal a mixed picture: some received compensation, but many have not been paid, some have missed multiple rice-growing seasons, or are still waiting for clear timelines to relocate…

… Several Cambodian companies are involved in the project, with different contractors working on different sections, he said, noting that construction in his area had made some progress, including excavation work.

According to the government, Cambodian companies hold a 51% stake in the $1.2 billion project, while Chinese companies hold 49%.

…, Sun Chanthol, First Vice Chairman of the Council for the Development of Cambodia (CDC), said China approved a $200 million loan to support the project, alongside a $200 million grant. He also said a syndicate of Chinese lenders would provide a $1 billion loan to the concessionaire to cover the canal’s construction costs…

The Cambodian shareholders in the project — Overseas Cambodia Investment Corporation (OCIC), and Phnom Penh Autonomous Port and Sihanoukville Autonomous Port, declined to comment, referring questions to the CDC.

Am Sam Ath, operations director at rights group Licadho, said authorities should provide affected residents with clear information about the project and compensation process to ease concerns…