China and Cambodia ink deal for massive canal project that has raised environmental concerns

PHNOM PENH, Cambodia (AP) — Cambodia and China person signed a $1.2 cardinal woody to concern an ambitious canal task that aims to boost commercialized ratio by linking a subdivision of the Mekong River adjacent Phnom Penh to a larboard connected the Gulf of Thailand, the Cambodian authorities bureau heading the task announced Friday.

The woody to money the Funan Techo Canal was signed Thursday during the authorities sojourn to Cambodia of Chinese President Xi Jinping, the bureau said successful a quality release. Xi returned location Friday aft a three-nation Southeast Asian circuit that besides included Vietnam and Malaysia.

Construction of the 151.6-kilometer (94-mile) canal began past twelvemonth but was halted soon aft the Aug. 5 groundbreaking ceremonial for reasons that were not made clear. Cambodian Prime Minister Hun Manet said astatine the clip that the canal volition beryllium built “no substance what the cost,” emphasizing that the task promotes “national prestige, the territorial integrity and the improvement of Cambodia.”

Described arsenic a public-private concern contract, the woody was signed by Deputy Prime Minister Sun Chanthol connected behalf of Cambodia’s government, and by Ieng Sunly of the Funan Techo Coastal-Inland Waterways Company Ltd., the backstage assemblage partner. The task is being developed connected a build-operate-transfer basis, with Cambodian investors holding a 51% stake, and Chinese investors holding 49%.

“The canal volition make a caller inland waterway-maritime corridor susceptible of handling vessels up to 3,000 deadweight tons,” according to Friday’s announcement. It volition encompass canal excavation and the operation of vessel locks, navigation and logistics infrastructure.

“As an inland waterway and important transport infrastructure successful Cambodia, the FTC Project volition go a caller motor driving nationalist economical growth," said Wang Tongzhou, president of China Communications Construction Company, successful the announcement. He added that "after completion, it volition importantly trim the broad logistics costs successful Cambodia, and beforehand Cambodia’s manufacture to the middle-to-high extremity of the worth chain.”

China Communications Construction Company is the genitor institution of China Road and Bridge Corporation, the contractor for the project's operation from the Bassac River to the coastal state of Kep. The monolithic state-owned steadfast has faced scrutiny for its alleged engagement successful fiscal scandals. It is besides blacklisted by the United States for its relation successful helping the Chinese subject conception and militarize artificial islands successful the South China Sea.

According to Friday's announcement, the canal is expected to make "up to 50,000 nonstop and indirect jobs successful Cambodia.”

Critics person raised concerns that the canal could severely disrupt the Mekong Rive r’s earthy flood patterns. These disruptions could pb to worsening droughts and a simplification successful the nutrient-rich silt indispensable for Vietnam’s captious atom accumulation successful the Mekong Delta, a portion that sustains millions and is simply a large planetary atom exporter.

The signing announcement, however, stated that “A rigorous Environmental Impact Assessment, conducted by 48 specialists, confirmed minimal biology impact.”

It added that the Cambodian authorities has led efforts to minimize resettlement “with a way designed to debar dense communities and taste sites" and that "a liable compensation and consultation process is underway.”