Cambodia and China have signed an agreement on the Funan Techo Canal project worth $1156 million.
The signing ceremony took place on April 17, 2025, during the state visit to Cambodia of Chinese President Xi Jinping, reflecting the high-level consensus reached between Xi Jinping, Samdech Techo Hun Sen, President of the Cambodian Senate, Prime Minister Hun Manet.
The agreement was signed in the presence of H.E. Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC), and Mr. Wang Tongzhou, Chairman of China Communications Construction Company (CCCC) The PPP Contract was signed on behalf of the Government of the Kingdom of Cambodia by Deputy Prime Minister H.E. Sun Chanthol, and on behalf of the Project Company by its representative, H.E. leng Sunly,
Stretching 151.6 kilometers from the Bassac River near Phnom Penh to the coastal province of Kep, the canal will create a new inland waterway-maritime corridor capable of handling vessels up to 3,000 deadweight tons (DWT). The project will involve canal excavation, construction of ship locks and supporting navigation and logistics infrastructure.
“This is an ambitious engineering undertaking, but also a strategic enabler for transportation and connectivity, trade, agriculture, water management, climate change resilience, tourism, and national logistics,” said H.E. Sun Chanthol. “It is a modern revival of a historic route a powerful link between our Cambodian past and future.”
“Let this canal serve as an lasting symbol of what can be achieved when nations cooperate in good faith, when vision is backed by action, and when the public and private sectors come together in the service of the people,” he added.
Mr. Wang Tongzhou, Chairman of CCCC, said “As an inland waterway and important transport infrastructure in Cambodia, the FTC Project will become a new engine driving national economic growth. After completion, it will significantly reduce the comprehensive logistics costs in Cambodia, and promote Cambodia’s industry to the middle-to-high end of the value chain.”
Chinese Ambassador to Cambodia Wang Wenbin affirmed that China fully understood Cambodia’s needs regarding the Funan Techo Canal Project and will continue to provide support.
Ambassador Wang spoke on Saturday (Apr. 19) during a press conference held at the Chinese Embassy following Chinese President Xi Jinping’s state visit to Cambodia.
According to the ambassador, China reiterated its support for the Funan Techo Canal Project, and he underlined that five agreements and contracts related to the Funan Techo Integrated Water Resources Management Project were signed on 17 April 2025 during the visit.
“The Chinese side clearly understands that this project is a key aspiration of the Cambodian government. We fully recognise Cambodia’s needs and concerns, and we will continue to provide support. During this visit, Chinese enterprises involved in the project also signed cooperation agreements with the Cambodian side. This demonstrates our mutual commitment to being strategic partners,” Ambassador Wang Wenbin underscored.
Notably, the five signed agreements and contracts include public-private Partnership Agreement between Sun Chanthol, representing the Royal Government of Cambodia, and Ieng Sunly, representing Funan Techo Coastal-Inland Waterway Co., Ltd.; a Shareholders Agreement; an Investment Agreement; an Engineering, Procurement, and Construction (EPC) Agreement; and an Operation and Maintenance Agreement.
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