Cambodian Journalists Alliance Association

International Media Criticize Stalled Funan Project as Affected Residents Demand Updates from Government

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)

Despite the promise of transparency and collaboration, communication and action gaps have emerged following the groundbreaking of the Funan Techo Canal project. While local residents continue to ask the government for updates and faster impact evaluations, international media has criticized the project for stalling, citing funding issues from China.

Last week, Reuters reported that China’s financial involvement in the project was uncertain, noting that Beijing has raised concerns and yet to make firm commitments regarding its funding.

After Reuters published the article, Sun Chanthol, the First Vice Chairman of the Council for the Development of Cambodia (CDC), responded to criticism from several foreign media outlets regarding China’s uncertain funding, calling it “completely wrong.”

Amid foreign media criticism, local residents have remained in the dark, with very little information. A few villagers said ministry officials visited them to assess their assets and income, but many others have not received any updates or engagement from local or national authorities. This disconnect raised questions about the effectiveness of governance and commitment to keep affected communities informed.

The $1.7 billion Funan Techo Canal project was officially launched on August 5, 2024 with people participating from across the country. However, residents who lived along the canal and in nearby villages were not invited to attend the groundbreaking ceremony.

Cheng Kimsong, a resident of Prek Ta Hing, the second section of the project located in Kandal province’s Koh Thom district, told CamboJA News that so far, no authorities or ministry officials visited her family to assess their assets. She said everything was quiet, and all she could do was “wait and see”.

“I’m affected and don’t have a place to live. I don’t know what to do,” she said. “If they pay us well, we’ll wait and see where we can move to.”

Lim Tong Eng, another resident living along Prek Takeo, the first section of the project in Kien Svay district, Kandal province, shared a similar experience. He told CamboJA News that a group of individuals, whom he believes were ministry officials, visited him in August to inquire about his home, farmland, and income. However, since that visit, he has not received any updates.

“I don’t know how the process will continue. We’ll just have to wait and see,” he said. “But I really want to know soon, so we can buy land elsewhere.”

Residents near the Prek Ta Hing stream located in Koh Thom district, Kandal province, which will be expanded when Funan Techo Canal is built, February 29, 2024. (CamboJA/Pring Samrang)
Residents near the Prek Ta Hing stream located in Koh Thom district, Kandal province, which will be expanded when Funan Techo Canal is built, February 29, 2024. (CamboJA/Pring Samrang)

Slow due to rain and flooding

Chey Sam An, chief of Samrong Thom commune in Kien Svay district, told CamboJA News that only 11 families in Prek Takeo have been visited to assess the size of their land and income, in August. However, the situation has not changed, even though over 300 families are reportedly affected by the canal project.

He added that local authorities lack information about the canal project, preventing them from organizing public forums to allow residents to raise their concern and seek clarification.

San Chey, president of Cambodian Social Accountability Coalition, told CamboJA News that while there are many ways to foster connection between communities and local authorities, the government’s commitment was crucial. 

With regards to the canal project, San Chey emphasized the importance of proactive engagement with affected citizens to avoid public criticism.

“We want to see meetings held to resolve issues before development begins because it serves the interests of the people,” he said. “Such meetings are essential as they allow authorities to publicize the government’s implementation, address potential impacts in advance, and understand the concerns of the people.” 

Hoeurn Samnieng, CDC Deputy Secretary-General, said the technical team has been measuring and determining the necessary steps to address the impacts of the project.

“Previously, progress was slow because of the rainy season and flooding,” he explained. “However, the technical team will now accelerate this work, with plans to complete it by the first quarter or early [part] of the second quarter of 2025.”

He added that organizing a public forum with citizens to discuss the progress of the canal was a separate task that follows a different mechanism.

‘Must compensate them’

On November 27, during the launch of the Council for the Development of Cambodia Investment Project Management System (cdcIPM), Chanthol reassured the public, stating that the “Funan Canal will be completed as planned or ahead of schedule”.

He said Cambodia plans to finish the canal construction in 2027 and begin operations in 2028. 

He explained that over the past three months, the CDC and relevant ministries have conducted detailed environmental impact studies and engaged with local residents. Initially, 1,585 houses were identified as being affected by the project. However, the figure was updated to 2,305 houses, of which 400 are severely impacted and will face demolition.

“We are waiting for the water to recede to properly deploy coordination,” Chanthol said. “Then, the Ministry of Economy and Finance will follow up with inspections. We are clear about what we have done. We must compensate them.” 

Previously, Chanthol said the CDC and Ministry of Public Works and Transport (MPWT) were working to secure funding for the project. The first 21-kilometer section will be managed by Cambodian investors through a joint venture company.

Sihanoukville and Phnom Penh Autonomous Ports will hold a 51% stake while Overseas Cambodian Investment Corp owns 49%. He added that discussions are underway to establish a company for the remaining 159 kilometers, after which concession agreements will be finalized for both sections.

Chanthol also highlighted that the Mekong River Commission (MRC) issued a report stating that the canal project was “very good” and would “not have any environmental impact on Cambodia or Vietnam”.

Phan Rim, spokesperson of the MPWT, declined to comment, saying that Chanthol has already clarified on the issue. 

Both Phnom Penh and Sihanoukville autonomous ports, and the Chinese Embassy in Phnom Penh did not respond.

Judge for themselves

The MRC told CamboJA News via email that basic information was obtained through the notification process and was in regular communication with member countries in the Mekong, including Cambodia. The MRC expects further reports, such as the feasibility study report and other relevant documents as part of ongoing collaboration in accordance with established procedures.

“However, we require more detailed information and studies from Cambodia to further understand and verify this initial assessment,” the MRC said. “We remain committed to working closely with member countries to ensure that any potential implications for the broader Mekong Basin are fully considered.”

To advance the process, the MRC Secretariat has proposed a cooperative approach including technical briefings by Cambodia, technical site visits, experience-sharing with other international canal projects, joint monitoring, and additional impact assessments if requested.

Brian Eyler, director of Stimson Center, pointed out the “significant inconsistencies” between Chanthol’s remarks on MRC’s involvement in the canal project and its official stance. 

He stressed that while the MRC is dedicated to supporting its member countries, it is vital that these countries accurately interpret MRC’s actions and statements, as any misunderstanding undermines Mekong cooperation and fosters doubt among other member nations at a time when trust is essential.

“Since he [Chanthol] is talking publicly about MRC’s involvement, the Deputy Prime Minister could make public any such study done by the MRC so that interested parties inside and outside Cambodia can judge for themselves, that includes potential investors,” he added. 

Discussions on canal project to come up

Meanwhile, Eyler opined that investors have been reluctant to finance the canal due to concerns over its low economic viability and the uncertain long-term costs related to maintenance and environmental impact.

“Disclosing important documents to the public, such as the previously complete feasibility study and any studies done by the MRC can inspire confidence in investors,” he added. “Until then, the Funan Techo Canal project is stuck in the mud.”

With the canal issue raised again amid Foreign Minister Prak Sokhonn’s visit to China after his return to office last week, Asia-Pacific geopolitical analyst and co-founder of the Khmer Democracy Organization (KDO) in Australia, Seng Vanly, believes that his discussion will also cover the strengthening of economic cooperation and investment between Cambodia and China.

“During the visit, I believe the Foreign Minister will bring up the Funan Canal project with his Chinese counterpart to push it forward,” Vanly said. 

“If the project fails to meet the government’s timeline, it could harm the administration’s reputation. I anticipate the talks will encourage China to publicly affirm its financial commitment to the project, reassuring both local and international audiences that the Funan Techo Canal will be completed as planned.”

Foreign Affairs spokesperson Chum Sounry declined to comment, stating that he has nothing to offer.

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