Representing the GDPPP was Mr. Hang Vuthika, Deputy Director General, who attended the meeting on behalf of H.E. Om Macthearith, Director General.

The meeting was held at the Ministry of Public Works and Transport under the leadership of H.E. Chhoun Voun, Director General of the General Department of Land Transport, and Mr. Ly Sary, Deputy Governor of Siem Reap Province.

Various stakeholders, including representatives from Siem Reap Provincial Administration, Apsara Authority, and relevant provincial departments, were also present to contribute to the discussion.

The meeting focused on assessing the feasibility of introducing an electric bus fleet as a public service in Siem Reap City.

The GDPPP’s involvement in this project highlights its commitment to promoting sustainable transportation solutions and fostering public-private partnerships in Cambodia.

The post Stakeholders Gather for Siem Reap Electric Bus Project first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

Cambodia’s ambitious infrastructure push takes flight with the recently inaugurated Siem Reap Angkor International Airport, a $1.1 billion jewel poised to propel tourism and economic growth. But the story doesn’t end there. On the ground, another monumental project awaits its turn: the Techo Funan Canal, a $1.7 billion waterway carving a path from the Mekong River to the open sea, recently granted the green light by the government. And towering above them all, the Phnom Penh International Airport, the biggest international gateway in the making, stands half-built, its completion slated for late 2024.

The skies above Siem Reap sparkled with excitement on November 16th, 2023, as the grand inauguration of the Siem Reap Angkor International Airport took center stage. This $1.1 billion marvel, stretching majestically across 700 hectares, is poised to become a tourism magnet and a potent economic driver for both Siem Reap province and Cambodia at large.

Airbus A340-300s and Boeing 777s gracefully glide onto the runway, ferrying eager tourists to the wonders of Angkor Wat. The airport boasts an impressive capacity to handle 7 million passengers annually in its initial phase, with the infrastructure designed to eventually accommodate a staggering 20 million passengers by 2040.

This visionary project is a joint venture between three Chinese companies – Yunnan Investment Company, Yunnan Construction Company, and Yunnan Airport Operations Management Company – united under the banner of Angkor International Airport Investment (AIAI).

Cambodia’s waterways are about to witness a transformative leap with the Techo Funan Canal, a groundbreaking $1.7 billion project that will stitch the mighty Mekong River to the open sea. This 180-kilometer marvel, meticulously planned as a public-private partnership (PPP), stands as a testament to Cambodia’s commitment to self-reliance, opting for private investment instead of foreign loans.

The canal’s two navigation lanes, each carving an impressive 100 meters of upstream and 80 meters of downstream water. This maritime masterpiece promises to revolutionize trade and commerce, with its four-year construction timeline paving the way for dams, bridges, and a scenic 208-kilometer riverside path that will touch the lives of an estimated 1.6 million residents across four provinces.

The crown jewel of Cambodia’s aviation ambitions is yet to come Phnom Penh International Airport will be a large international airport, able to handle the biggest aircraft such as the Airbus A380 and Boeing 747. It will initially have a capacity of millions of passengers per year, with plenty of room to grow. The first phase of the airport will have numerous aircraft gates. The existing Phnom Penh Airport will be used for domestic flights, private jets, military and government use.

The Cambodian government has authorized the development company to build and develop the new Phnom Penh International Airport in southern Cambodia. The first phase of the project is a new airport with a total investment of billions of dollars.

The new airport is designed for tens of millions of passengers and will have advanced infrastructure, including three runways and a satellite terminal. Construction is over halfway complete and is expected to be finished by the end of 2024. The airport will start operating next year.

These three projects, though at different stages, are intricately woven together. Siem Reap attracts tourists, who then connect to the wider world through Phnom Penh. The Techo Funan Canal facilitates trade, feeding the economic growth fuelled by tourism. Together, they create a synergistic effect, propelling Cambodia’s ascent on the regional and global stage.

The post Building the Future: Cambodia’s infrastructure boom boasts combined value of over $4 billion first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

Cambodia did not borrow money from China to build the canal, but the construction will be conducted in cooperation with the private sector in the form of BOT, the Premier said while presiding over the inauguration ceremony of Cheung Aek Sewage Treatment Plant in Phnom Penh’s Khan Meanchey.

The Funan Techo Canal project has been carefully studied by experts for the benefit of the nation, said Samdech Thipadei, reaffirming the Royal Government’s commitment to building the canal to expand waterway transport, which is more profitable for the economy.

The Prime Minister made the comments in response to an article dated Dec. 26 of The Cambodia Daily which misrepresented the Funan Techo Canal project, stressing that his reaction was taken to protect the legitimacy of the Royal Government and its officials.

Samdech Thipadei Hun Manet took the opportunity to encourage journalists to respect the professional ethics of publishing true information from all angles and dare to correct it if the published information is false.

Yesterday, the Ministry of Economy and Finance also clarified that the canal project will be developed under the Public-Private Partnerships (PPP) mechanism, not under the framework of any loans from development partners.

The Funan Techo Canal is the first historic project in Cambodia’s waterway transport sector to connect the Mekong River system and the sea route.

According to the project’s feasibility study which has been already completed, the construction of this waterway of 180 kilometers long and 100 meters wide upstream and 80 meters downstream with two navigation lanes would take around four years to complete and cost some US$1.7 billion

It will link Prek Takeo of the Mekong River to the sea in Kep province crossing four provinces: Kandal, Takeo, Kampot, and Kep with a total of 1.6 million people living on either side of the waterway.

The post Techo Funan canal project to be developed under BOT contract first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

Public-Private Partnership (PPP) project for the new village community in the Kep mangrove forest, Kep province, and the infrastructure project connecting the Mekong Discovery Trail project, Kratie-Stung Treng province, to the Lao border.

The Cambodian delegation, led by Mr. Chuob Ratana, Director of Tourism Development Planning, Ministry of Tourism also highlighted the many other investment opportunities in the tourism sector in Cambodia, including the development of new international airports, hotels and resorts, eco-tourism destinations, and cultural attractions.

The panel discussion attended by delegates from Thailand, Cambodia, Laos, and Vietnam, and will be led by the Asian Development Bank (ADB).

The GMS Strategic Framework 2030 (GMS-2030) encourages private sector participation through one of its six innovative approaches: “embracing private sector solutions”.

This aims to reverse the current limited participation of the private sector in GMS projects, which in 2021 only represented 15% of total financing in the GMS Regional Investment Framework.

The tourism sector represents a sizeable portion of the GDP of GMS countries, contributing from 4.6% to 26.4% in 2019, before the pandemic. A coordinated approach is needed, developed jointly with the private sector, to engage investors in helping to finance connectivity infrastructure and operate services more efficiently. Public-private partnerships are at the core of sustainable tourism.

The private sector participants from the GMS Business Council and tourism industry associations such as the Pacific Asia Travel Association (PATA) and Destination Mekong; the Mekong Tourism Coordinating Office; and ADB officials from the GMS Program, the Private Sector Operations Department (PSOD), and the Office of Market Development and Public-Private Partnership (OMDP) also attended the roundtable.

The post Cambodia presents two tourism investment projects at GMS Tourism event in Bangkok first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The GMS Tourism Coordinating Office is organizing a private sector roundtable on regional tourism projects to generate a public-private dialogue in which both parties can work together to meet interests and maximize value creation.

The panel discussion will be attended by delegates from Thailand, Cambodia, Laos, and Vietnam, and will be led by the Asian Development Bank (ADB).

As planned, Mr. Chuob Ratana, Director of Tourism Development Planning, Ministry of Tourism led the delegation and will present on the infrastructure investments to support regional tourism, PPP opportunities in tourism, and other private sector opportunities from regional tourism.

The GMS Strategic Framework 2030 (GMS-2030) encourages private sector participation through one of its six innovative approaches: “embracing private sector solutions”.

This aims to reverse the current limited participation of the private sector in GMS projects, which in 2021 only represented 15% of total financing in the GMS Regional Investment Framework.

The tourism sector represents a sizeable portion of the GDP of GMS countries, contributing from 4.6% to 26.4% in 2019, before the pandemic. A coordinated approach is needed, developed jointly with the private sector, to engage investors in helping to finance connectivity infrastructure and operate services more efficiently. Public-private partnerships are at the core of sustainable tourism.

Senior officials from GMS ministries of tourism; private sector participants from the GMS Business Council and tourism industry associations such as the Pacific Asia Travel Association (PATA) and Destination Mekong; the Mekong Tourism Coordinating Office; and ADB officials from the GMS Program, the Private Sector Operations Department (PSOD), and the Office of Market Development and Public-Private Partnership (OMDP) will attend the roundtable.

The post Cambodian delegates to present tourism Investment opportunities at GMS Tourism meeting first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The plan includes several infrastructure projects, such as the construction of new roads, railways, and ports. It also has investments in logistics facilities, such as warehouses and distribution centers.

Minister said the plan is necessary to improve Cambodia’s logistics performance and attract more foreign investment. He noted that the current logistics costs in Cambodia are high compared to neighboring countries, which makes it difficult for businesses to compete.

The plan is still under development, but it is expected to be submitted to the Cambodian government for approval in the coming months.

The plan includes several mega projects, such as a logistic complex from YCH that has already signed a framework agreement with local company World Bridge for Phnom Penh and a future plan for Sihanoukville. The complex is also expected to receive funding from the World Bank for a study project.

The Phnom Penh Logistics Complex (PPLC) worth about $200 million was officially unveiled during the 40th and 41st ASEAN Summit and Related Summits to transform Cambodia as a high-potential logistics hub that will be a connectivity point for serving regional trade.

To help Cambodia deliver on its aim—to become a new regional logistics hub in Southeast Asia, the International Finance Corporation (IFC) has signed a new deal with the Ministry of Public Works and Transport to set up a public-private partnership (PPP) for this logistics complex in Sihanoukville province.

The minister said that the government hopes to extend the logistic complex to other areas, such as Bavet and Poipet. This would create a larger logistics system that would be more competitive in the region and attract more investors to Cambodia.

The post Cambodia $50 billion master plan in logistics to boost sector’s competitiveness first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The project, which is 135.10 km long and runs through Kandal, Prey Veng, and Svay Rieng provinces, will be built at a cost of approximately US $1.35 billion, with a construction period of 4 years under the Build-Operate-Transfer (BOT) investment form. The expressway will be 4 lanes and operate for 50 years before being transferred to the Royal Government.

The PPP Agreement is divided into two main parts which include the PPP Agreement setting out the common principles for implementation, construction, and operation of the Phnom Penh-Bavet Expressway and the relevant annexes which detail the principles agreed in the contract.

The Project is set to open on June 7th, 2023, and will be linked to the Ho Chi Minh-Mok Bai Expressway project upon completion.

Additionally, the third expressway project from Phnom Penh to Siem Reap is scheduled to complete its feasibility study by the end of May with a Memorandum of Understanding (MoU) to be signed soon.

The post $1.35 billion’s Phnom Penh-Bavet expressway MOU officially signed first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The document – Financial Advisory Services Agreement (FASA) – was signed here on April 19 between H.E. Sun Chanthol, Senior Minister and Minister of Public Works and Transport, and Mr. Asad Yaqub, IFC Resident Representative for Cambodia.

The new agreement will see IFC—as the exclusive lead advisor— structure the PPP transaction and support the government to conduct an internationally competitive tender to select a qualified private developer in accordance with the country’s PPP law.

The project is expected to be developed in phases, with an overall capital cost estimate of about US$200 million.

The Sihanoukville Logistics Complex is one of the two priority logistics hubs to be developed in Cambodia. Our objective is to position Cambodia as a regional logistics transfer hub in Southeast Asia, said H.E. Sun Chanthol.

“By working with IFC, we can leverage their global expertise as we explore best options to leverage private sector engagement in the development of this critical logistics infrastructure in the country,” he said.

With its strategic location in Cambodia’s coastal southwest and well-connected to roads, railways, and an airport, the complex can supplement the Sihanoukville port, which is Cambodia’s only international and commercial deep-sea port, handling two-thirds of the total container throughput in the country.

A modern and transport-integrated logistics complex supporting the port will help accelerate the movement of exports and imports and reduce port congestion. The project will improve efficiency and lower logistics costs in Cambodia, which are now among the highest in East Asia and one of the key bottlenecks to competitiveness and diversification.

The developer is expected to finance, develop, and operate the infrastructure, facilities, and systems within the complex under a long-term PPP contract with the government. The tender award to the winning bidder is likely to be granted by late 2024, with the hub to be constructed over three years.

Large-scale investments in infrastructure are vital to support Cambodia’s export-oriented manufacturing industries and boost the country’s supply chain and logistics connectivity with the region, said Mr. Asad Yaqub, IFC Resident Representative for Cambodia.

“With IFC’s support, this is a project which will be structured in line with global best practices to create a competitive market and draw qualified investors. Bringing in private sector financing will help reduce the burden on the country’s finances and also set a precedent for developing transport and logistics PPP transactions in the country,” he underlined.

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At the review meeting results of 2022 and the work direction of 2023 of the Ministry of Public Works and Transport on February 15, Senior Minister Sun Chanthol stated, it’s clear that nothing changes, we start to deliver the machines, and the construction site is underway. We have completed the Phnom Penh-Bavet Expressway concession agreement and PPP.

The agreement was signed following a bilateral meeting between Prime Minister Samdech Techo and Premier Li Keqiang, but China’s internal procedures were slow to be completed due to Covid-19 and the Chinese New Year, so there is a slight delay in the preparation of internal documents, the minister added.

Sun Chanthol, Senior Minister, stated, “To be clear, the construction of the Phnom Penh-Bavet Expressway has not been canceled or delayed. We could sign tomorrow, but the Chinese Prime Minister cannot testify because internal procedures have not been completed.”

Furthermore, the Senior Minister stated that Samdech Techo Hun Sen had requested that the procedure be expedited. Still, the Chinese company promised that the construction site would begin in June 2023 and would be completed in 2027, parallel to the expressway from Ho Chi Minh to Mok Bai in the same year.

Phnom Penh-Bavet construction is set to begin in the middle of 2023, with a construction budget of $1,638 million. This expressway is critical in connecting China to Myanmar, Thailand, Cambodia, and Vietnam via ASEAN Road No. 1, which Cambodia is expanding from two to four lanes from Poipet to Phnom Penh and connecting from Phnom Penh to Bavet on the second expressway to allow goods and passengers from China to pass through.

The post Phnom Penh-Bavet Expressway kicks off in H1 as planned first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The scheduled event was shared in a preparatory meeting for the 51st Great Mekong Sub-region (GMS) Tourism Working Group and the Mekong Tourism 2023, chaired by H.E. Thong Khon, Minister of Tourism here in Phnom Penh on Jan. 18.

According to H.E. Thong Rathasak, Director General of International Cooperation and Tourism Development at the Ministry of Tourism, the Mekong Tourism Forum 2023 is part of the program under GMS’s economic cooperation framework, focusing on strengthening and promoting the Public-Private Partnership (PPP) in the tourism sector.

It aims to formulate a pathway for “building back better” in a way healthy for the planet for resilience and sustainability.

The event will also feature a panel discussion on smart tourism and smart destination with digitalization.

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