Hidden troubles behind Cambodia's mega-canal dream that nobody expected
Cambodia started building its biggest-ever water project but faces unexpected funding issues. Chinese support remains unclear while previous mega-projects show mixed results in the country
In a grand ceremony this summer Hun Manet welcomed a new era for Cambodia with monks blessings fireworks and big promises for a mega-canal project (which would cost around $1.7 billion)
The planned 180-km waterway connecting Mekong River to Gulf of Thailand seemed like a done deal‚ but things arent going as expected. While Cambodian officials talked about Chinese backing the story gets more complex with each passing month
Chinese state-owned China Road and Bridge Corporation involvement remains unclear: numbers changed from full funding to 49% and now to uncertain levels. A source close to negotiations said “no money is on the table yet.“ The abandoned ceremony site tells its own story
The project fits into a broader pattern of changing investment landscape. Chinese aid to Cambodia is going down fast - from hundreds of millions few years ago to zero new loans this year. Previous mega-projects show mixed results:
- Phnom Penh-Sihanoukville expressway stays half-empty
- New airports struggle with low traffic
- Real-estate investments slow down
- Tourism numbers dont recover to pre-covid levels
The canal would help Cambodia bypass Vietnamese ports; however its financial and environmental impact raises questions. “Its normal business practice to explore water projects based on market principles“ - said Chinese foreign ministry avoiding direct answers about funding
The mega-canalʼs future looks shaky as Beijing re-thinks its overseas spending while dealing with its own economic issues. Despite both countries calling each-other “ironclad friends‚“ the friendship seems to face a real-world test
