Outcry over canal project a case of double standard: Cambodian DPM

He says government has fulfilled obligations by notifying the Mekong River Commission

- Tan Hui Yee

Cambodian Deputy Prime Minister Sun Chanthol has called the outcry over the country’s upcoming US$1.7 billion (S$2.3 billion), 180km canal project an exercise of “double, triple standards”.

He pointed out that the government has already fulfilled its obligations by notifying the Mekong River Commission (MRC) of this matter – but is now being pressured to do more.

In an interview with The Straits Times on June 26, he also said that two Cambodian state-owned enterprises will be taking on total debt of possibly US$250 million as co-investors of the Chinese-backed Funan Techo Canal project, which will break ground on Aug 5.

When completed, the 100m-wide, 5.4m-deep navigation canal will connect Phnom Penh’s inland port near the Mekong River to the country’s coast and reduce the need for Cambodian products to transit through Vietnamese ports.

Based on the jobs it will generate and wider development it will spur, it is estimated to give an economic internal rate of return of 20 per cent to 31 per cent – over and above what is typically required for projects to get World Bank or Asian Development Bank funding, he said.

Some experts are worried that the canal would worsen conditions in the Mekong, which is already distressed from overfishing, dam-building and pollution.

Researchers from the US-based Stimson Centre say that the high levees expected to be used for this project will reduce wet season flooding, which is important for natural wetlands and agricultural production in Cambodia and Vietnam.

Get exclusive insights into Malaysia in weekly round-up

By signing up, I accept SPH Media's Terms & Conditions and Privacy Policy as amended from time to time.