5 Strategic Agreements Signed to Advance the Funan Techo Canal Project
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Marking a major advancement in Cambodia’s infrastructure development, five pivotal agreements and contracts related to the Funan Techo Canal Project were signed on 17 April 2025. The signing ceremony was led by Sun Chanthol, First Vice President of the Council for the Development of Cambodia (CDC) and Chairman of the Sub-committee for the project, alongside Wang Tong Zhou, Chairman of China Communications Construction Company (CCCC).
Also present at the event were the Minister of Public Works and Transport, who serves as the permanent deputy chairman of the Sub-committee, senior officials from China Road and Bridge Corporation (CRBC), CCCC, and other key stakeholders.
The agreements formalised include:
- A Public-Private Partnership (PPP) Agreement
- An Agreement between the Royal Government of Cambodia and Funan Techo Inland Waterway Co., Ltd.
- A Shareholders’ Agreement
- An Investment Agreement
- An Engineering, Procurement, and Construction (EPC) Agreement, along with an Operation and Maintenance Agreement
Developed under the consensus between Cambodian and Chinese leadership, the Funan Techo Canal Project is a strategic initiative aligned with the Belt and Road Initiative and the Diamond Hexagon Cooperation Framework. It aims to strengthen regional integration and build a Cambodia-China community with a shared future.
Spanning 174 kilometres, the canal will link Cambodia’s inland waterways to the sea, starting from the Takeo Canal of the Mekong River, passing through the Ta Ek and Ta Hing canals, and ultimately reaching Kep Province. It will traverse four provinces—Kandal, Takeo, Kampot, and Kep—and accommodate vessels of up to 3,000 DWT.
Infrastructure works include canal dredging, river rehabilitation, riverbank protection, hydrological stations, slipways, and supporting maritime facilities. The completed canal is expected to enhance the country’s inland waterway network, improve transportation safety, and boost domestic and regional logistics.
In addition to its transport benefits, the canal incorporates water resource management for irrigation and agricultural development, offering long-term advantages for farmers and rural communities. The project will support integrated growth across agriculture, industry, logistics, and the port sector, enhancing Cambodia’s linkages with regional and international markets.
Once operational, the Funan Techo Canal will not only modernise Cambodia’s transport infrastructure but also contribute to sustainable trade, food security, and economic resilience—reinforcing the country’s role in regional connectivity and cooperation.
