Cambodian PM launches $1.7 billion canal project linking… | kbnmart

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Cambodian Prime Minister Hun Manit has inaugurated a US$1.7 billion canal project that aims to create a new link from the Mekong River to the sea, marking a major infrastructure development for the country. The ambitious 180-kilometre (110-mile) Phunan Teko Canal aims to facilitate economic growth and cultural exchange by providing a direct waterway to the Gulf of Thailand. The launch ceremony, held in Prek Takeo, southeast of the capital Phnom Penh, was marked by drumming and fireworks celebrations.

Historical project

At the opening ceremony, thousands of attendees wore T-shirts bearing images of Hun Manet and his father Hun Sen, who ruled Cambodia for nearly four decades. Prime Minister Hun Manet stressed the importance of the canal, saying, “We have to build this canal at any cost.” The event began symbolically when Manet pressed a ceremonial button with his wife, Bich Chanmony.

The Phunan Teku Canal will run from a site on the Mekong River, about an hour southeast of Phnom Penh, to the Gulf of Thailand. The project is scheduled for completion in 2028. The primary goal of the project is to reduce Cambodia’s dependence on Vietnamese ports, which currently handle about a third of the country’s shipping traffic via the Mekong. Authorities hope to cut that dependence to about 10 percent once the canal is operational.

Economic aspirations and challenges

Despite the lofty goals, the canal’s limited capacity—100 metres (328 feet) wide and 5.4 metres (17.7 feet) deep—has raised questions about its economic viability. Critics have expressed concerns about whether the canal will achieve its ambitious goals for cargo traffic and economic benefits.

Moreover, there is considerable uncertainty surrounding the project’s primary purpose—whether it will primarily serve shipping or irrigation needs—and its funding sources. In addition, the impact on the flow of the Mekong River, one of the world’s longest, remains a major concern. The Mekong supports a quarter of the world’s freshwater fish catch and half of Vietnam’s rice production, making it vital to agriculture and the regional environment.

Environmental and regional concerns

Environmentalists have long warned of the risks to the Mekong River from infrastructure projects, pollution, sand mining and climate change. Cambodia, Laos, Vietnam and Thailand are signatories to the 1995 Mekong River Agreement, which governs the distribution of the river’s resources. Although Cambodia has notified the Mekong River Commission of its plans for the canal, Vietnam has asked for more detailed information about the project’s impacts.

Phnom Penh claims that the canal only affects one tributary of the Mekong River, and therefore only requires the notification that has already been submitted. However, the potential environmental impact on the wider Mekong ecosystem remains a controversial issue.

National significance and political symbolism

The canal is seen as a signature infrastructure project for former Prime Minister Hun Sen and is expected to boost support for his successor, Hun Manet. Hun Sen has metaphorically described the canal as giving Cambodia “a nose to breathe,” stressing its crucial importance to the country’s economic independence.

The government says the canal will provide an alternative route for container ships, which currently pass through Vietnam before reaching the sea, keeping transport revenues within Cambodia. In addition, the project envisions the creation of riverside economic zones along the canal’s route, which could create tens of thousands of jobs in one of Southeast Asia’s poorest countries.

Concerns about local impact and compensation

Villagers living along the planned canal route have expressed mixed feelings about the project. Many residents face having their homes confiscated as construction progresses, and there is widespread concern about the adequacy of compensation. Some villagers, who were not invited to attend the opening ceremony, have expressed concerns about their homes.

“We are happy and worried at the same time because we have not been informed about the compensation. We are demanding proper compensation. People have told us that when developments happen, there are tears. So we are worried about that,” said a 51-year-old woman who asked not to be identified.

Deputy Prime Minister Sun Chanthol, who led the project, said the canal would benefit 1.6 million people and create thousands of jobs. He promised the government would provide “fair compensation” to those affected.

However, human rights activists in Cambodia have pointed to a pattern of land grabbing for infrastructure projects, often leaving displaced people struggling to relocate with minimal compensation.

International intervention and strategic concerns

Last year, China Road and Bridge Corporation (CRBC), a major Chinese construction company, agreed to conduct a feasibility study for the canal project. While Cambodian officials have suggested that CRBC could finance part of the canal, the company has yet to publish its study or make any public funding commitments.

Despite Cambodia’s close ties with Beijing, Prime Minister Hun Sen has denied that the canal is part of China’s Belt and Road infrastructure initiative. The project has also raised concerns in neighboring Vietnam that the canal could be used by Chinese warships, especially given Cambodia’s deepening military ties with China.

The Phunan Teku Canal project represents a significant and controversial step in Cambodia’s infrastructure development. With its promise of economic growth and improved connectivity, the project holds great potential. However, a number of uncertainties and concerns surrounding environmental impact, financing, and local displacement must be carefully managed to ensure that Cambodia benefits from the canal without causing undue harm to its people and environment.