The groundbreaking for the second section of the $1.2 billion Funan Techo Canal took place on Saturday while communities affected by the first section in Kien Svay, Kandal province remain in the dark about compensation.
Originally valued at $1.7 billion, the 180 kilometer canal project is now estimated at $1.17 billion. It would connect the river to the sea, from Kandal to Kep province, using existing waterways in Kandal, Takeo, Kampot, and Kep.
The first section of the canal measuring 26 kilometers, which starts from the tributary of the Mekong River in Kien Svay District, Kandal Province, was inaugurated on August 5, 2024. The second section, measuring 151 kilometers, begins at a tributary of the Bassac River and extends from Prek Ta Hing in Koh Thom District, Kandal Province, to Kep Province.
With the groundbreaking for the second section complete, there is neither clear information regarding compensation nor construction work on the first section to date, according to Dim Mech, a businessman who has lived along the planned canal route since the late 1990s.
“I know that there is a groundbreaking [ceremony] today, but there’s still nothing here [in Prek Takeo],” he said.
During the ceremony, Prime Minister Hun Manet called for understanding from affected families, stating that the government would address the issue of compensation.
“Thank you to the citizens who have supported us, and we ask for the understanding of those who may be affected,” he said. “The team will work hard to resolve this appropriately,” he remarked.
The canal’s success depends on public participation, he said, adding that the project has been carefully studied to minimize impacts on local communities.
The canal project aims to strengthen livelihoods and boost the national economy by enabling independent transportation of goods from inland waterways to the sea. It is expected to create new opportunities in logistics and other industrial sectors.
At the event, Sun Chanthol, First Vice-Chairman of the Council for the Development of Cambodia (CDC), said significant progress has been made on the first section, including the completion of project map demarcation and verification, and marking of 155 land boundaries. He added that the compensation process is ongoing, with a budget of nearly $71 million set aside.
The government has taken steps to reduce the project’s impact, with total compensation cost for both sections amounting to $217 million.
The project is scheduled for completion in 2028 with 51% of the total investment borne by Cambodian shareholders and 49% by a Chinese investment company.
Yong Kim Eng, executive director of the People’s Center for Development and Peace, told CamboJA News that the development plans should adequately address the impacts on affected communities, specifically to homes and land.
“Development can proceed alongside compensation, but it must be done according to proper principles with fair compensation,” he said.
Kim Eng mentioned that the process should not create dissatisfaction between the communities in the first and second section of the project. Both sections should be handled accordingly.
He also noted that the government aims to improve people’s livelihoods, expressing hope that those affected by the canal would receive fair compensation.
