PHNOM PENH: As fireworks and balloons signaled the start of construction on a canal that he believes will change his nation’s economic fortunes, Hun Manet, the leader of Cambodia, bowed to receive blessings from monks dressed in saffron during a ceremony in August.
Hun Manet claimed China would provide 49% of the finance for the Funan Techo Canal, which will connect the Mekong River to the Gulf of Thailand and lessen Cambodia’s maritime dependency on its neighbor Vietnam, while speaking to hundreds of people who were waving the Cambodian flag.
The strategic infrastructure project is expected to cost US$1.7 billion, or almost 4% of Cambodia’s yearly GDP, according to the country’s government. However, months later, there is still uncertainty about China’s financial commitment. According to four persons who were either directly involved in the investment plans or briefed on them, Beijing has voiced concerns about the project and has not committed to finance it.
When questioned about the canal, China’s foreign ministry responded via email to Reuters: “It is normal business practice for Chinese companies to assist Cambodia in exploring the construction of comprehensive water conservancy projects in accordance with market principles.”
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