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- March 26, 2023 1:09 PM
PHNOM PENH -- Cambodia Airport Investment Co., Ltd (CAIC) on Tuesday signed a joint venture agreement with Singapore's SIA Engineering Company (SIAEC) to form aircraft maintenance, repair and overhaul (MRO) services in Cambodia.
Under the agreement, CAIC will hold a 49 percent equity stake in the joint venture, with SIAEC holding 51 percent, said a joint statement.
The joint venture will establish line maintenance services at the new Techo International Airport (TIA) in Phnom Penh, the statement said, adding that TIA in Phase 1 is a greenfield airport being developed in southern Phnom Penh about 19 km from Phnom Penh city center, with a total investment budget of 1.5 billion U.S. dollars.
TIA, to be developed in three phases, is designed for 50 million passengers, with three runways and a satellite terminal across a total land area of 2,600 hectares, the statement said, adding that in line with the opening of TIA, the joint venture will commence operations in March 2025.
"The joint venture is expected to develop into a regional aircraft maintenance, repair, and overhaul hub in TIA," the statement said.
CAIC Chairman Pung Kheav Se said he was delighted to form this partnership with SIAEC.
"We strongly believe that the transfer of technical competencies and aligned work practices with SIAEC are crucial for the long-term success of this joint venture, which will in turn create more high-value job opportunities for our local workforce," he said.
SIAEC Chief Executive Officer Ng Chin Hwee said this joint venture will provide comprehensive line maintenance support with a high level of despatch reliability and quality engineering services to the airlines operating in TIA.
"It will strengthen SIAEC's position as a leading line maintenance provider while offering high quality and efficient maintenance services to valued customers at more overseas locations," he said.