Cambodia has initiated the construction of a $1.7 billion canal, funded by China, to link the capital city of Phnom Penh to the Gulf of Thailand. The 180-kilometer Funan Techo canal aims to reduce shipping costs to the country's deep-sea port in Sihanoukville and decrease reliance on Vietnamese ports.
The project has raised environmental concerns, particularly regarding its potential impact on the Mekong River, which supports millions of people across six countries through fishing and agriculture. Vietnam, a neighboring country, has expressed worries about the canal's effects on its Mekong Delta rice production and the shifting of Cambodian exports away from Vietnamese ports.
Despite these concerns, Cambodia's ruling elite views the canal as a strategic move to bolster support for Hun Manet, who recently assumed leadership from his father, Hun Sen. The government has emphasized the national prestige and development benefits of the canal, declaring it a historic project with widespread support.
While the canal will be jointly constructed by Chinese and Cambodian companies, Cambodian entities will hold a 51% majority share to maintain control. The Chinese state-owned firm China Road and Bridge Corporation has been awarded the contract for the construction.
The US-based Stimson Center has cautioned that the canal could have significant transboundary impacts on water resources and agriculture in Vietnam's Mekong Delta. However, the Cambodian government has dismissed these warnings, asserting its commitment to the project's completion.
China's substantial involvement in Cambodian infrastructure projects underscores the close diplomatic ties between the two nations. China's financial support has facilitated the development of various projects in Cambodia, with a significant portion of the country's foreign debt owed to China.
The canal project is just one example of China's expanding influence in Cambodia, with ongoing concerns about the potential military implications of Chinese investments in the region. Despite these apprehensions, Cambodia remains a key diplomatic partner for China within the Association of Southeast Asian Nations.
