Funan Techo Canal construction to proceed alongside impact mitigation

The Funan Techo Canal is expected to boost Cambodia’s waterway logistics as well as enhance the nation’s economic independence. MPWT

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Synopsis: The $1.15 billion waterway will be built while land and resettlement issues affecting local communities are being resolved, says the government spokesman.

The government is addressing the impact of the Funan Techo Canal project on local communities, with the process progressing according to plan, even though the construction companies are requesting that compensation and resettlement issues be resolved before full-scale work begins.

Meas Soksensan, Secretary of State at the Ministry of Economy and Finance, presented the government’s stance on the matter during a public forum on macroeconomic management and the 2026 national budget law, at the Sofitel Phokeethra Phnom Penh, on Monday.

Soksensan said the technical groundwork for construction is already in place, noting that the canal’s route alignment was completed in 2025 and that authorities have begun resolving land-related impacts affecting local residents.

He said the process remains aligned with the construction plan for the Funan Techo Canal, which is scheduled for completion in 2028.

“From a technical perspective, we are already able to start construction in some locations,” he said. “However, the construction company has requested that impact resolution for residents along the route be carried out over a longer distance first.”

He said the request was aimed at ensuring that construction would be uninterrupted once work began in earnest.

“They want to work continuously rather than start and stop,” Soksensan said. “That is why we need to resolve impacts over a longer stretch in advance, so the project can proceed smoothly.”

He added that the current efforts to address land and livelihood impacts are progressing step by step and remain within the framework of the government’s original implementation plan for the canal.

Launched on August 5, 2024, the Funan Techo Canal was hailed by the government and people as “game-changing” infrastructure, expected to give a boost to the Kingdom’s waterway logistics as well as enhance the nation’s economic independence.

The project was estimated to cost $1.7 billion, but the figure was later revised to $1.156 billion. The investment is structured as a public-private partnership with a 51% stake held by Cambodian entities and 49% by Chinese investors. The deal was inked in during Chinese President Xi Jinping’s state visit to Cambodia.

The Chinese investment is led by state-owned enterprises China Communications Construction Company and its subsidiary, China Road and Bridge Corporation. These companies are responsible for the construction and development of the canal.

A preliminary report indicates the project will have an impact on nearly 10,000 homes, three factories, 30 bridges, 36 national roads, 600 dams and canals, and more than 7,000 hectares of farmland.

Geopolitical analyst Thong Mengdavid has told Khmer Times the strong response of Cambodians to the project reflects their belief in the Funan Techo Canal.

“The canal is part of an overarching objective of the Comprehensive Intermodal Transport Master Plan, which is to modernise Cambodia’s logistics framework and position the country as a technologically advanced regional hub by 2030,” he said.

“By prioritising infrastructure development and aligning with regional connectivity goals, Cambodia aims to enhance its competitiveness and attract investment in the evolving ASEAN landscape.

-Khmer Times-
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