Cambodia has initiated the construction of a $1.7 billion canal project, funded by China, that aims to link the capital city of Phnom Penh to the sea. The Funan Techo canal, spanning 180 kilometers, is set to connect Phnom Penh with Kep province on the south coast of Cambodia, providing access to the Gulf of Thailand. The canal, measuring 100 meters wide and 5.4 meters deep, is intended to reduce shipping costs to Cambodia's deep-sea port in Sihanoukville and decrease reliance on Vietnamese ports.
The project underscores China's significant influence in Cambodian politics and economy. However, concerns have been raised regarding the potential environmental impact of the canal, particularly on the flow of the Mekong River, which sustains millions of people across six countries through its fish and agriculture.
Neighboring Vietnam has expressed apprehension about the project, fearing its effects on the Mekong Delta rice-growing region and the possibility of Cambodia shifting its trade routes away from Vietnamese ports. Despite these concerns, Vietnam has been cautious in its approach, mindful of the delicate historical relationship between the two countries.
The canal project is seen as a strategic move by Cambodia's ruling elite to garner support for Hun Manet, who recently assumed leadership from his father, Hun Sen. The government has declared the groundbreaking day, coinciding with Hun Sen's birthday, as a national holiday to celebrate the project's commencement.
While the canal will be a joint endeavor between Chinese and Cambodian companies, Cambodian entities will hold a 51% majority share to retain control. The Chinese state-owned construction giant China Road and Bridge Corporation has been awarded the contract for the canal's construction.
Despite warnings from organizations like the Stimson Center about potential transboundary impacts on water resources and agriculture in Vietnam's Mekong Delta, the Cambodian government remains resolute in its commitment to the project. Vietnam has urged Cambodia to collaborate in assessing the project's impacts on the region.
China's extensive involvement in Cambodia is evident through various Chinese-funded projects and infrastructure developments across the country. Cambodia's close ties with China have also helped mitigate criticism of Beijing within the Association of Southeast Asian Nations.
As China and Cambodia continue to strengthen their partnership, concerns have been raised about a naval port expansion project that could potentially provide China with a strategic military outpost in the Gulf of Thailand. Despite denials from Hun Sen, reports suggest that Cambodia granted China rights to establish a military base at the Ream Naval Base in 2019.
