"Second Section of Funan Techo Canal Breaks Ground as First Section Compensation Remains Unresolved", 11 April 2026

The groundbreaking for the second section of the $1.2 billion Funan Techo Canal took place … while communities affected by the first section in Kien Svay, Kandal province remain in the dark about compensation.

Originally valued at $1.7 billion, the 180 kilometer canal project is now estimated at $1.17 billion. It would connect the river to the sea, from Kandal to Kep province, using existing waterways in Kandal, Takeo, Kampot, and Kep.

The first section of the canal measuring 26 kilometers, which starts from the tributary of the Mekong River in Kien Svay District, Kandal Province, was inaugurated ... The second section, measuring 151 kilometers, begins at a tributary of the Bassac River and extends from Prek Ta Hing in Koh Thom District, Kandal Province, to Kep Province.

With the groundbreaking for the second section complete, there is neither clear information regarding compensation nor construction work on the first section to date, according to Dim Mech, a businessman who has lived along the planned canal route since the late 1990s.

… The canal project aims to strengthen livelihoods and boost the national economy by enabling independent transportation of goods from inland waterways to the sea. It is expected to create new opportunities in logistics and other industrial sectors.

… The project is scheduled for completion in 2028 with 51% of the total investment borne by Cambodian shareholders and 49% by a Chinese investment company.

Yong Kim Eng, executive director of the People’s Center for Development and Peace, told … that the development plans should adequately address the impacts on affected communities, specifically to homes and land.

“Development can proceed alongside compensation, but it must be done according to proper principles with fair compensation,” he said…

He also noted that the government aims to improve people’s livelihoods, expressing hope that those affected by the canal would receive fair compensation.