China Invests 1.7 Trillion Won in Cambodian Canal Project

The United States and Vietnam Express Concerns

China has decided to invest $1.2 billion (approximately 1.7 trillion won) in a canal construction project that will connect Phnom Penh, the capital of Cambodia, to a port on the Gulf of Thailand.

According to reports from the Associated Press and other sources on April 19, the Cambodian government announced the previous day that it had signed a funding agreement for the 'Funan Techo Canal' during Chinese President Xi Jinping's visit to Cambodia.

The Cambodian government explained, "A new inland and maritime waterway will be opened, capable of accommodating vessels of up to 3,000 DWT (deadweight tonnage, the net cargo capacity excluding the ship's own weight)."

The agreement reportedly includes not only canal excavation but also the construction of locks for ship passage, as well as navigation and logistics infrastructure. Wang Tongzhou, chairman of China Communications Construction Company (CCCC), the parent company of China Road and Bridge Corporation (CRBC), which is in charge of the canal's construction, said, "This project will become an important inland waterway and a key transportation infrastructure for Cambodia, serving as a new engine for the country's economic growth."

The Funan Techo Canal is a long-cherished project for Cambodia, aiming to connect Phnom Penh to the Gulf of Thailand in southern Kep Province over a distance of about 180 kilometers, utilizing a tributary of the Mekong River as a waterway. However, countries such as the United States and Vietnam have expressed concerns that the canal could serve as a route for Chinese warships.

This construction project, valued at $1.7 billion (approximately 2.4 trillion won), which is about 4% of Cambodia's gross domestic product (GDP), began in August last year but was halted due to funding shortages and other issues.