Funan Techo Canal: The New Trade Artery from Mekong to Thailand through a Cambodia-China Partnership

Cambodia and China have signed a $1.2 billion agreement to finance the Funan Techo Canal project, aimed at enhancing trade efficiency by connecting a branch of the Mekong River near the capital Phnom Penh to a port on the Gulf of Thailand.

The agreement was signed on Thursday, April 17, during Chinese President Xi Jinping’s visit to Cambodia, as part of a Southeast Asian tour that also included Vietnam and Malaysia, according to a statement issued by the Cambodian government agency overseeing the project on Friday, April 18.

Project Details and Progress

The canal spans 151.6 kilometers in length. Construction began in 2024 but was halted shortly after a groundbreaking ceremony held on August 5, with no official explanation for the delay.

Cambodian Prime Minister Hun Manet had previously affirmed that the project would proceed “regardless of cost,” stressing its importance in strengthening Cambodia’s national standing, territorial integrity, and development.

🇰🇭🇨🇳
🔴قناة فونان تيكو، كمبوديا، 17 يومًا، 10 كيلومترات تم الانتهاء منها.

أرسل المقاول الصيني 2500 آلة كبيرة للعمل ليلًا ونهارًا.

يبدو الأمر وكأنه مشهد لعبة.😅
ماهو المشروع:
قناة فونان تيكو، قناة جديدة بين نهر ميكونغ والبحر، القناة البالغ طولها 180 كلم، ستمتد قناة فونان تيكو من… pic.twitter.com/9kl3vIWxAC

— الصين بالعربية (@mog_china) August 26, 2024

Public-Private Partnership

The agreement was signed as a public-private partnership. Deputy Prime Minister Sun Chanthol signed on behalf of the Cambodian government, while Ing Sunly represented the private sector partner, Funan Techo Coastal Inland Waterways Ltd.

The project will be implemented under the Build-Operate-Transfer (BOT) model, with Cambodian investors holding a 51% stake and Chinese investors holding 49%.

<

p class=”” data-start=”1699″ data-end=”1896″>According to the official announcement, the Funan Techo Canal is expected to create up to 50,000 direct and indirect jobs in Cambodia, significantly contributing to economic growth and development.