The Funan Techo Canal: $1.2B Waterway Project to Modernize Cambodia’s Transport and Trade Networks

The Council for the Development of Cambodia (CDC) has approved the Prek Chek-Fuon Techo waterway project, spanning Kandal, Takeo, Kampot, and Kep provinces with an investment of $1.2 billion USD, expected to create approximately 3,199 jobs, according to a CDC statement on November 7, 2025.

Construction of this historic project officially began on August 5, 2024, and waterway operations are set to start by late November or early December 2025, with completion scheduled for 2028. The project is a long-term strategic initiative originally envisioned by Samdech Techo Hun Sen, and is currently overseen by the government under Prime Minister Hun Manet.

The 174.5 km waterway will connect rivers to the sea along existing Cambodian canals, enhancing domestic and international water transport networks, accelerating transport infrastructure modernization, and promoting efficient trade and logistics. It will also contribute to water resource management, agriculture, tourism, commerce, urban planning, construction, and investment, supporting Cambodia’s vision to become a upper-middle-income country by 2030 and a high-income nation by 2050.

The project emphasizes job creation, productivity, and multi-sectoral development along the waterway corridor, marking a historic milestone in Cambodia’s transport and economic development.