The groundbreaking ceremony of the much-awaited Funan Techo Canal (FTC) project is finally taking place, but not without its share of opposition emanating from known quarters. The Royal Government of Cambodia has adroitly addressed the criticism both technically as well as politically to defend FTC as inevitable axis to Cambodia’s march to progress on par with the comity of nations in the region and beyond. Khmer Times talks to experts to uncover what the fruition of FTC would mean to Cambodia and its people
August 5, 2024, will go down as one of the most memorable and cherished days in the annals of Cambodian history. As you hold the Khmer Times copy and read this story, the Royal Government of Cambodia (RGC) could be officially inaugurating the construction site of the Funan Techo Canal (FTC) project in Kien Svay district, Kandal province. The day is also significant as it coincides with the birth anniversary of FTC’s founder former Prime Minister Hun Sen, now current President of the Senate.
The groundbreaking ceremony for the FTC project will be presided over by Prime Minister Hun Manet, accompanied by fireworks and drums throughout the country to celebrate this historic project. Deputy prime ministers, senior ministers, ministers, leaders and citizens shall take part in this special and auspicious occasion.
To commemorate the opening, RGC has decided to give citizens a day off, allowing them to participate in the festivities and celebrations planned for the inauguration without worrying about schools, careers and business operations.
The construction date of the FTC was announced by Prime Minister Hun Manet during the launch ceremony of a multi-purpose port in Kampot province on June 6, as he declared that the groundbreaking ceremony to be held on August 5, 2024.
During the 19th National Fish Day celebration held in Kampong Cham province in early July, Prime Minister Hun Manet said the FTC project symbolises nationalism, underscoring that the project holds special significance as it embodies the spirit of nationalism, supported by various political factions except for a small extremist party overseas.
“The project aimed to connect waterways between rivers to the sea of Cambodia, passing through Kandal, Takeo, Kampot and Kep provinces which has been meticulously studied and planned, demonstrating RGC’s commitment to its success,” Mr Hun Manet said.
The Premier said, “At first, the FTC project consisted of 100 percent foreign investment owned, but now the project no longer belongs entirely to foreigners as the RGC has encouraged Cambodians to invest up to 51 percent of the total capital and they will be able to make the decision on the management and operation of the canal.”
Speaking to Khmer Times, Lor Vichet, Vice President of Cambodia Chinese Commerce Association (CCCA) said, “The FTC project is both historic and symbolic as it underscores the country’s commitment to provide alternative transportation and logistics routes to reduce costs and increase trade efficiency.”
Vichet continued that the “inspection demonstrated the immense importance of proceeding with the groundbreaking ceremony for this historic project timely while also symbolising Cambodia’s strategic autonomy on the regional stage”.
“The speedy and timely implementation of the project will steadfastly provide Cambodia with another transportation infrastructure upgrade that is vigorously pursued by the RGC to reduce logistics cost and efficiency to enhance foreign investment attractiveness.”
The FTC project is a major step forward undertaken by RGC to strengthen Cambodia’s trade competitiveness and enhance the Kingdom’s strategic autonomy on the regional stage, a cornerstone of Cambodia’s trade tool to fulfil its ambition to become a high-income country by 2050, the CCCA Vice-President added.
In an effort to widespread the potential of project, Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia said, “The $1.7 billion canal to be constructed over the period of four years aimed at reducing delivery cost and time, promoting commercial areas and centres, creating work opportunities for citizens at the grassroots level, developing agricultural and aquaculture, supporting the country as the fourth economic development pole, and promoting urban development and real estate growth.”
The 180-kilometre-long canal is constructed 100 meters wide upstream and 80 meters wide downstream with a deep of 5.4 meters with three dams to prevent seawater from flowing into the Mekong River along with 11 bridges and the side roads with a total length of 208 kilometres, Chanthol added.
He explained that the canal runs alongside 1.6 million Cambodian citizens as it connects with the Takeo Canal of the Mekong River hence the ships can come through the canals of the Bassac River in Koh Thom district and continue all the way to the sea in Kep province, passing another three provinces including Kandal, Takeo and Kampot as well.
The canal will also have a positive impact on all the Kingdom’s ports especially the Sihanoukville Autonomous Port (PAS) and Phnom Penh Autonomous Port with the increase in shipping transactions, thereby creating more jobs for people.
The construction represented a significant step forward in the efforts to modernise the infrastructure and boost agricultural capabilities by improving water management, transportation and economic development in the region.
In short, the FTC project was expected to facilitate better irrigation for agriculture, improve water drainage and provide a new route for transport and trade.
The official launch of the FTC project received national and international interest, especially the businessmen and investors who know that water transportation costs way less than land and air paths.
Realising the huge benefits of the FTC project, the Cambodia-China Community (CCC) and the Council for the Development of Cambodia (CDC) agreed to expedite the formulation of a master plan for the ‘Industrial and Technological Corridor’ (ITC) and ‘Fish and Rice Corridor’ (FRC) to promote imports of the Kingdom agriculture products to China on April 23.
The master plan was revealed in a joint press release after successfully conducting the seventh meeting of the Cambodia-China Intergovernmental Coordination Committee (7th Cam-China ICC) co-chaired by Chanthol and Wang Yi, Minister of Foreign Affairs of China.
The master plan paved the way for Chanthol to meet with a delegation of the China International Engineering Consulting Corporation (CIECC) to discuss the construction of three dams along the proposed FTC construction aimed to protect the Mekong River and its ecosystem.
Speaking to Khmer Times, Dr Chey Tech, a socio-economic researcher, said that the FTC is envisioned as a transformative historical project for Cambodia which CRBC invests under a build-operate-transfer (BOT) contract as same as the first expressway from Phnom Penh to Preah Sihanouk as well as other second and third expressways from Phnom Penh to Bavet town and Phnom Penh to Siem Reap province, this canal is providing a multitude of economic and developmental advantages.
“The canal is expected to significantly boost Cambodia’s trade and investment by providing a direct water route from the river to the Sea Gulf and no longer need to rely on Vietnamese ports, reducing transportation costs and time. This could make Cambodian exports more competitive in international markets, attracting foreign investment and creating new job opportunities.”
The canal is anticipated to play a crucial role in agricultural development and it can provide a stable water supply for irrigation, enhancing agricultural productivity and ensuring food security.
“Additionally, the canal could facilitate the transportation of agricultural products to domestic and international markets, contributing to rural economic growth,” he said.
Furthermore, the canal could contribute to the development of inland ports and industrial zones along its route and it would stimulate economic activity, create employment opportunities, real estate and urbanization development, and promote regional development. The infrastructure built around the canal, such as roads and bridges, could also improve connectivity within the country, Dr Tech added.
However, a few main concerns are about the environmental and social safeguards associated with the project. So, the RGC has to be careful in planning and addressing measures, especially to provide proper compensation payments to those affected by land and properties.
Last week, Lim Heng, Vice President of the Cambodia Chamber of Commerce told the media that the real estate sector seems to be slowing down, so the domestic and international businessmen keen on shifting the focus to agriculture instead.
“The FTC project offers opportunities for waterway transportation and industrial development in adjacent areas along with the cultivation of diverse crops which will boost agriculture productivity in the future.”
He stressed that citizens along the waterway will receive better water irrigation systems, reliable electricity, good roads, and support from RGC further attracting more domestic and foreign investors.
The canal will attract the development of several different economic zones and centres for logistics. In addition to this, it will make it possible to establish additional satellite ports, agricultural development zones, irrigation systems, aquaculture facilities, and livestock farms, he added.
The FTC project will further boost job creation at Sihanoukville Autonomous Port, Phnom Penh Autonomous Port, and other ports, which will accelerate urban development and growth. “This expansion will also stimulate the real estate market,” Heng said.
Since the project was strongly supported by the Cambodian as it could provide significant benefits in particularly transforming the Kingdom’s trade procedure with regional countries and the world, FTC received negative feedback from several sources.
Despite the criticism of the negative environmental impact from a group of researchers in the Socialist Republic of Viet Nam (Vietnam) and the side effect of the geopolitical tension between the United States (US) and the People’s Republic of China, Senate President Hun Sen mentioned four major benefits that Cambodia would obtain from the FTC project, once completed.
The FTC project will reduce the tax pressure, allowing the Kingdom to reap maximum economic benefits from the water transport sector, create better aquaculture, improve the irrigation system, and prevent flood relief in the southwest area of the country. “The movement was supported by citizens nationwide as it will significantly boost the economy,” he said.
“The canal links the waterway directly from the capital to the sea and will not pass through any countries or Vietnam where they require payments to allow the passage of goods depending on their interest,” Mr Hun Sen said.
Niraj Gupta, Director of Macro Computing Solutions Co., Ltd, told Khmer Times that Cambodia stands on the brink of a transformative era with the imminent launch of the FTC construction, a visionary infrastructure project that underscores the nation’s ambitious aspirations to become a leading logistics and economic hub in the Mekong sub-region.
“This monumental endeavour, featuring a waterway 100 meters wide and 5.4 meters deep, capable of accommodating cargo ships of up to 3000 deadweight tons, is poised to be a key driver of Cambodia’s economic growth.”
As we celebrate this milestone, we extend “our heartfelt congratulations to the Cambodian government and all stakeholders involved in bringing this vision to fruition. “The FTC is more than just a waterway; it symbolises progress, innovation, and the limitless potential of Cambodia,” he added.
“From a technical perspective, the FTC promises to revolutionise logistics in the region. By enabling the efficient movement of large cargo ships, the canal will significantly reduce transportation costs and time, enhancing trade connectivity and fostering economic integration within the Mekong sub-region.”
Gupta said, “This improved logistical efficiency is expected to attract a wave of foreign investment, stimulating economic activity and creating new opportunities for businesses and individuals alike. The canal’s capacity to handle substantial cargo volumes will also alleviate pressure on existing transportation networks, reducing congestion and contributing to more sustainable and environmentally friendly logistics solutions.”
In addition to its economic and logistical benefits, the FTC project is a testament to the power of digitalisation and streamlined procedures in modern infrastructure development. “Leveraging cutting-edge technology and innovative project management techniques, the canal’s construction has incorporated advanced data analytics, digital twin simulations, and real-time monitoring systems,” he said.
The Director said, “These digital tools have enabled precise planning, efficient resource allocation, and proactive risk management, ensuring the project’s timely completion and long-term operational success. The integration of digital solutions into the canal’s operations will continue post-launch, with smart logistics platforms facilitating seamless coordination between shippers, carriers, and port authorities.”
The successful implementation of the FTC also highlights the importance of strategic vision and collaboration. Macro Solutions, a global leader in fintech and digital transformation, applauds Cambodia’s vision and commitment to progress.
“The canal is more than just a waterway,” Gupta said, adding, “It’s a symbol of Cambodia’s aspiration to become a regional economic hub. By leveraging digital technologies, the country can optimise the canal’s impact and accelerate its journey towards prosperity.”
As we look forward to the official launch of FTC, we celebrate the collective achievements of all those who have contributed to this groundbreaking project. “This canal represents a beacon of hope and prosperity for Cambodia, promising a brighter future marked by sustained economic growth, improved logistics, and enhanced regional integration.”
We wish Cambodia every success in this exciting new chapter and stand ready to support its journey toward becoming a leading economic powerhouse in the Mekong sub-region, he said.
It may be informed that on July 16, Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance (MEF) called on the Economic and Financial Policy Committee (EFPC) to develop a management framework for the river port, connecting the river transport system with the sea.
To ensure the efficiency of water transport, Pornmoniroth, also Chairman of EFPC, held a detailed discussion on the draft of “the framework for the development and business management of the river port and the connection of the river transport system with the sea in Cambodia 2025-2033”.
The initiative aimed to expand and promote the use of waterway transportation, improve the efficiency of port services, reduce transportation costs, increase trade integration regionally and ensure competitiveness with the world.
