PHNOM PENH – An impact and compensation assessment of the Techo Funan Canal project has begun with the first segment in Kandal province​, part of the process before construction. 

This has raised hopes for appropriate compensation and equitable development distribution.

Ministries of Public Work, Economy and Finance, Land Management and Water Resources as well as local authorities met on February 10 to discuss benefits, cooperation, impacts and solutions for people living around the project site.

Ministry of Public Works and Transport spokesperson Phorn Rim said the impact of the first section, spanning over 20km in Kandal, is being addressed and is expected to be completed by the end of April, paving the way for the digging process.

The second section, covering 159km in Kandal, Takeo, Kampot and Kep provinces, is undergoing verification and demarcation, set to be completed in April.

“The Ministry of Economy and Finance will lead the government's impact management mechanism,” he said.

Ministry of Economy and Finance spokesperson Meas Soksensan said ministries have prepared technical layout drawings, which are expected to be completed soon. 

“The working group will inform the public through local authorities before starting work to address the impacts,” he said.

Previously, the Council for the Development of Cambodia assessed the impact of approximately 1,585 homes, 3 bridges, 1 factory, 18 national roads (4 kilometers), 70 trails (45.5 kilometers), 15 dams with two lines of 387 meters long, 15 lakes with a length of 13.6 hectares, and 2,900 hectares of farmland, including 149.5 hectares of residential land.

The 180km project, which will connect the Mekong River to the sea, will cost $1.7 billion which will be covered by the State-Company China Bridge and Road Corporation under a build-operate-transfer scheme.

Construction is estimated to take four years. Starting south of Phnom Penh, the canal will connect the Takeo Canal of the Mekong River, the Ta Ek Canal of the Bassac River  and the Ta Hing Canal in Koh Thom district before reaching the sea in Kep province.

The groundbreaking ceremony for the canal was in August 2024, leaving many families fearing eviction and uncertain about little or unfair compensation.

Heng Kimhong, president of the Cambodian Youth Network and social activist, applauded the impact assessment that will ensure that affected people get acceptable compensation.

However, he said that it would be reassuring if the assessment started before the groundbreaking.

“I hope they will get acceptable compensation,” said Kimhong. “If evicted, I hope that they can get the opportunity to live a decent life in a new place.

“Infrastructure development should not be a burden for the citizens but a mechanism that makes their lives easier. They shouldn’t be victims of development in their own country. They should be given advantages from that development for a decent livelihood.”

This canal project has controversially posed questions about social and environmental impacts as well as fear of China Navy’s exclusive use.

However, these have been dismissed by the government which says the project will be of socio-economic benefit that provides more waterways to southwestern Cambodia in addition to the Mekong River.