Cambodia to Launch $1.7 Billion Funan Techo Canal

By: Leng Deth and Minea Son

PHNOM PENH, Feb 5, 2026 (KPT) – Cambodia is set to begin construction of the $1.7 billion Funan Techo Canal after completing resettlement and compensation measures for affected residents, officials said Thursday.

Phan Rim, spokesperson for the Ministry of Public Works and Transport, said the project will start once all procedures involving local communities, land authorities and the Ministry of Economy and Finance are finalized.

The canal aims to modernize Cambodia’s inland waterway network by linking the Mekong River system directly to the sea. Officials say it will reduce transport costs, improve competitiveness and ensure safer navigation.

Groundbreaking took place in August 2024 under Prime Minister Hun Manet, with completion expected by 2028. The waterway will span four provinces – Kampong Thom, Takeo, Kampot and Kep – and accommodate vessels of up to 3,000 deadweight tons.

The project will use 135 km of existing waterways, build 7 km of new canal and divert 38 km. Phase one, covering 26 km, will be funded by domestic enterprises, while phase two, stretching 159 km to Kep, will be co-financed with China Road and Bridge Corporation.

Officials said the canal will boost Cambodia’s transport infrastructure, strengthen trade connectivity and support sustainable development.