Cambodian Journalists Alliance Association

Funan Techo Canal Breaks Ground With Hopes Of Economic Success; Affected People Promised  Compensation

The groundbreaking ceremony of the $1.7 billion Funan Techo Canal in Kandal province on August 5, 2024. (CamboJA/Pring Samrang)
The groundbreaking ceremony of the $1.7 billion Funan Techo Canal in Kandal province on August 5, 2024. (CamboJA/Pring Samrang)

Cambodia witnessed the groundbreaking of the $1.7 billion Funan Techo Canal in Kandal province aimed at boosting the economy via water transportation, with Prime Minister Hun Manet pledging to resolve public concerns over any loss of territory sovereignty.

At 9:09 a.m today, Hun Manet launched the construction by pressing a red button during the canal’s groundbreaking ceremony in Kandal province accompanied by the sound of drums banged by school students and pagoda priests. 

The building of the canal is clear evidence that Cambodia is peaceful and has full freedom in determining its own destiny, and the full support of the nation, said Hun Manet. The canal will boost Cambodia’s economy, strengthen independence, and have ownership of waterway transportation, promote trading, industrial, agriculture, logistics and ensure efficient water management resources.

“The project was not only about developing infrastructure and waterway to facilitate transportation and economic growth but it has a special connection with geography and our history,” he said.

“This development is a reality […] it will benefit our people, not only the users of the waterway but also those living in the surrounding areas,” Hun Manet said, adding that  the project raised national prestige, independence and territorial sovereignty.

Those areas have the potential of becoming business centers in five years for people, including agro-agriculture and industrial zones for those living along a busy canal system which will change their economy.

Prime Minister Hun Manet presides over the groundbreaking of Funan Techo Canal in Kien Svay district in Kandal province on August 5, 2024. (CamboJA/Pring Samrang)

‘All Cambodian, no foreigners’ 

Hun Manet downplayed the fact that some compatriots expressed concern about the development of the canal losing territorial​ and national sovereignty.

“For me, regarding these concerns and suspicions, we must respond by building this canal at any cost,” he said.

“I would like to inform you that the loss of territory cannot happen [as we] have demarcated the area [with border posts] where millions of people, and there is no ceding [of territory] to others and no one will take the eastern and southern provinces of the canal,” Hun Manet said.

Earlier this year, controversy erupted after certain quarters questioned the sovereignty of the canal project due to the alleged involvement of China. However, ex-Prime Minister Hun Sen, now Senate president, made a series of statements to Cambodians to dispel concerns and allegations.

He urged citizens to come together and start a national movement to support the canal, with ministries and institutions designing photo frame campaigns on Facebook for locals to add to their profile in support of the project.

Hun Sen also prompted the government to hold the groundbreaking ceremony on August 5, which is his birthday.

Reiterating Deputy Prime Minister Sun Chanthol’s comments, Hun Manet said the canal would be developed under a build-operate-transfer (BOT) agreement. Private companies have responded to build the whole project.

Previously, it was supposed to have 100% foreign investment but major investments are by Cambodian’s investors now.

“The project has been invested by Cambodian [companies] and one part by foreign firm,” Hun Manet said. 

The first phase involving 21 kilometers is 100% controlled by Cambodian investors in a joint venture among Sihanoukville Autonomous Port and Phnom Penh Autonomous Port, making up 51 percent, and 49% by OCIC. “There are no foreigners here, we cannot lose sovereignty.”

China Road and Bridge Corporation reduced their investment from 100% to 49%. In turn, Cambodian companies increased their investment to 51%.

“So, don’t be afraid of foreign control, as it’s entirely Khmer investment controlling the two parts,” he said.

“I promise to continue safeguarding peace, including strengthening unity, solidarity, and especially the spirit of nationalism […] I commit to building Funan Techo canal and make it a successful historical inheritance for the next generation,” he added.

The 180 kilometers canal will connect Phnom Penh to Kep province, running through Kandal, Takeo, Kampot and Kep provinces. 

Cambodians including civil servants congratulate the groundbreaking of Funan Techo Canal in Kandal province’s Kien Svay district on August 5, 2024. (CamboJA/Pring Samrang)

Compensation, job creation 

Sun Chanthol, who is also first vice-chairman of the Council for the Development of Cambodia, said 1,585 households will be affected within a radius of 149.5 hectares of residential land, as well as 2,900 hectares of rice fields and plantations, CamboJA News reported last month.

“With regards to villagers whose land, houses and farmlands will be affected by the project, I assure the government has thoroughly studied and [approved] measures to settle the issue to ensure suitable compensation,” he said at the event.

“Villagers, please trust the government and not to be worried about the impact,” he mentioned, adding that a 26-month survey was conducted between February 2021 and April 2023.

Chanthol said the canal will bring major benefits to Cambodia’s socio-economy and strengthen the political independence of Cambodia’s waterway transportation, reduce costs, and stabilize the ecology, by not impacting the environment.

It is expected to “mitigate floods and drought” for eastern and southwest provinces, while providing 10,000 employment opportunities in the project.

Meanwhile, villager Sok Kong from Kampong Cham, who was at the site with others from his village since 3a.m, said he was happy with the event, seeing that Cambodia has never organized a groundbreaking of this size for a canal before. He thinks that the canal will help develop the country. 

“The project will help every field in Cambodia, like food transportation and materials from other countries and our country to others. For example, we don’t have to pay [transportation] fees anymore for our agricultural products,” he added. 

Seak Kimhor, 25, from Prey Veng, who was at the groundbreaking event at  3a.m, said she came voluntarily to celebrate the event.

“I’m happy because I think this project will help our country grow and I see Cambodia has developed a lot,” she said.

While many people came from other provinces to participate in the event, those along the canal, who might be affected by it, were not invited. 

Cambodians including civil servants congratulate the groundbreaking of Funan Techo Canal in Kandal province’s Kien Svay district on August 5, 2024. (CamboJA/Pring Samrang)

‘Why were we not invited’

Among them, Lim Tong Eng, 74, a resident there since birth, told CamboJA News with tears in his eyes that even though he lived there, he was not invited to the event. He did not know why. 

“I want to listen to what they say, but they didn’t invite [us],” he said. “I wonder what went wrong.”

He also has not received any information about the impact on their livelihood or compensation. He was not opposed to the project but said it would be good to have information, so that they would not have to worry. 

“They don’t tell us whether it would affect us or not, we do not know,” he said, adding that he also asked the village chief but he too could not update them.

“I am very afraid [of the] government giving less compensation,” Tong Eng said. “I want adequate compensation to buy land and build a house.” 

His daughter, who sat next to him, told CamboJA News that the information they received so far has been through the media. She also wondered why residents in her village who were directly affected by the project were not invited to the event. 

The people are currently waiting to see what would happen after the inauguration.

“We wanted information before the groundbreaking because we are the ones directly affected; they should tell us in advance,” said the woman, who declined to be named.

“Firstly, they must provide compensation so that people can use the money to buy land with available amenities, such as electricity and water,” she said. “Secondly, they also hoped for compensation for house demolition, not only for land.” 

Lim Tong Eng’s house, which is along the Mekong River, on August 5, 2024. The area is at the starting point of the Funan Techo Canal project along the Preak Takeo stream in Kien Svay district, Kandal province. (CamboJA/Seoung Nimol) 

The government is like “people’s parents”, so they should think about their well-being, she said, adding that they should “at least inform people directly”. 

When the government does not inform people, it affects their well-being because they “live with worry”. 

“Since hearing about the canal, he [her father] cannot sleep well,” she said. “My dad is sick, he thinks a lot. He has high blood pressure and can’t sleep.”  

The villagers were patient and did not choose to protest while waiting for the groundbreaking, she said. With the groundbreaking event over, people continued to wait to see “how long more before they were informed”.

She said the government should hold a public forum to explain the project and impacts directly, so that they have all the information. It is called transparency, she added. 

Relocating won’t be easy

Another resident, Phol Metta 38, who has lived near the canal for around 20 years, said he was happy with the canal development for the country but was “worried and doubtful” about the compensation.

He wanted to join the groundbreaking ceremony to know more about compensation but no one came to invite them. “People who live nearby were not at all invited,” he added.

“We just want to know about the compensation so that when we move to another place it is easier for us,” he said. “No one knows now. They [the government] have not informed us of anything.” 

Metta said people who live in Takeo and Kampot “also came to ask them if they knew anything about the compensation”. 

“They ask us if we knew since the celebration was near us but we also don’t know,” he added. 

He hoped the government would give them compensation in accordance with the market rate while hoping to hear about it soon as relocating was “not easy”. Many of them have jobs in the area and if they move, they will lose their jobs. 

Chey Sam An, chief of Samrong Thom commune in Kien Svay district, said he did know why only citizens who lived far away were invited but not those who live near the groundbreaking site.

“There were only three people from this area who joined the event. Two of them are village chiefs from both sides of the canal and the other was a commune chief,” he added.

Asked if he had information about the compensation, Sam An replied “no”, noting that the prime minister already mentioned that he would take care of the citizen’s concerns.

Cambodians including civil servants congratulate the groundbreaking of Funan Techo Canal in Kandal province’s Kien Svay district on August 5, 2024. (CamboJA/Pring Samrang)
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