PM rejects Funan Techo Canal funding crisis reports

Prime Minister Hun Manet Saturday rejected international media reports claiming a dry funding for the construction of the Funan Techo Canal (FTC), asserting that there are no obstacles whatsoever hindering the project’s implementation. He said that the Royal Government of Cambodia (RGC) has a clear master plan with several backup development partners ready to take over the project should one fail.Presiding over the closing ceremony of the ‘32nd Monk General Assembly Nationwide’ in the capital, Mr Hun Manet said that the RGC is implementing the FTC project with greater concern for the local citizens, addressing the impacts to ensure smooth and responsible procedure.

Shrugging off the criticism, the Premier said that the FTC project requires proper implementation procedures and there is nothing that seems to hinder the implementation process of this megaproject.

He made it clear that the working group is implementing the project carefully, following clear instructions to reduce impacts on the people at the grassroots level.

Mr Hun Manet took a dig at the critics of the mega project, saying, “Do you want us to complete the canal in three months? You can’t inaugurate the project today and then go straight to implement it the next day.”

“RGC need to clearly define the procedure, review the location and address its impacts on citizens, before permitting the excavators to dig the canal,” he said, adding that this is the rainy season and the water level is increasing, making it difficult to dig in some areas.

Mr Hun Manet turned to Wang Wenbin, Chinese Ambassador to Cambodia, who was present on the occasion, as he reaffirmed the funding cooperation to the public.

On November 22, the Ministry of Public Works and Transports (MPWT) issued a press release denying the charges of the Bangkok Post and Reuters which reported that Cambodia’s FTC project faces financial problems for its implementation.

MPWT clarified that RGC has been actively implementing the FTC project and the technical team has completed the detailed research, conducting an in-depth assessment based on the actual impacts on citizens, waterways and various infrastructure systems.

According to the MPWT press release, the technical team has been working diligently on the project in close collaboration with relevant institutions at both the national and international levels.

The media outlets are spreading false and unfounded information with the intention of undermining the construction process of the FTC project, the statement added.

It may be informed that on November 21, the Bangkok Post reported that four people directly involved in the investment plans told Reuters that Beijing has expressed misgivings about the project and has not made definitive commitments on its funding.

Speaking to Khmer Times, Seun Sam, a policy analyst at the Royal Academy of Cambodia said, “I have been closely monitoring this project for a long time, and I believe that the government has the capability to construct and complete the FTC project, as it holds significant importance. It serves as a historical symbol for the country and a legacy for the leaders.”

Expressing optimism on the government’s ability, he said, “I am confident that RGC has a sufficient budget to fund this $1.7 billion project, even in the absence of foreign investors. Cambodia has various national mechanisms available that can facilitate the construction and completion of this project.”

The government could also attract local investors or allocate a portion of the national budget over time, rather than all at once. This approach would allow the government to utilize the national budget in phases according to the project’s development stages, he added.

Sam continued by pointing out that, according to the government’s stand, the FTC project involves both foreign and Chinese investors.

“I believe this project is deemed significant by the government, as evident from the large ceremony held on its opening day and RGC will not abandon this initiative halfway through.”

Reacting to the reports from some international media outlets, he said that these claims are merely attempts to discredit the Cambodian government. “It is clear that some countries may not be pleased with the progress of this project,” he noted.