The Royal Government has announced a comprehensive 10-year roadmap outlining potential investment projects to be undertaken through public-private partnerships (PPP) from 2025 to 2035.
The PPP investment projects mainly focuses on infrastructure such as roads, bridges, ports, logistics, energy, clean water supply and waste management, according to a recent statement from Prime Minister Hun Manet.
The move is expected to unlock significant opportunities for both domestic and international investors. Also, more sectors can be added to the PPP priority list if they get approval from the government.
PPPs are vital tools to bridge the funding gap and accelerate progress, said Lim Heng, Vice-President of the Cambodia Chamber of Commerce.
“This move shows that the government is creating a more conducive environment for private investment and sustainable development,” Heng said.
The decree is expected to attract significant investment and stimulate economic activity in the coming years, he said.
“This makes it easier for investors to identify priority sectors having the potential for high incentives from the government,” he added.
The move is based on the Law on Public-Private Partnership enacted on November 18, 2021, replacing the 2007 Law on Concession.
The PPP Law applies to all qualified projects dealing with the development of public infrastructure and public services in strategic sectors such as transportation, digital and telecommunications, energy, environment, social affairs, science, and agriculture.
Under the PPP Law, the selected private partner is entitled to a concessional tax regime for the approved project and gets rights over the properties of the project as well as a guarantee by the government to underwrite contracts for easily availing credit from lenders.
The release of the 10-year PPP roadmap signifies the government’s strong commitment to public-private partnerships as a key driver of sustainable development.
This move aligns with the government’s broader strategy to diversify the economy and reduce reliance on traditional sectors as Cambodia seeks to attract foreign direct investment, create jobs, and enhance the country’s competitiveness on the global stage.
The Council for the Development of Cambodia (CDC) approved 346 fixed-asset investment projects worth $5.5 billion during the first 10 months of 2024, generating over 266,000 jobs.
The new projects focused on garments, travel goods, and footwear sectors, hotel development, hydroelectric power stations, freshwater ports, solar power plants, lighting and accessory factories, agriculture, amusement parks, car tyre plants, special economic zones, and infrastructure, among others.
