Second phase of Cambodia’s Funan Techo Canal project to begin

PHNOM PENH, March 30, 2026 (KPT) – Cambodia will launch the second phase of its Funan Techo Canal project on April 11, officials said Monday.

Prime Minister Hun Manet will preside over the ceremony in Borei Cholsar district, Takeo province. The project carries an estimated investment of USD 1.7 billion.

The canal, billed as a landmark in modernising Cambodia’s maritime and inland waterway transport, will create an interconnected network linking inland and coastal routes.

Authorities say it will cut transport distances and costs, boost competitiveness, and strengthen waterway security.

The second phase will extend 159 km from the Basak River to Kep province, co-financed by public enterprises, domestic firms, and the China Road and Bridge Corporation.

The waterway will traverse Kandal, Takeo, Kampot and Kep provinces, accommodating vessels of up to 3,000 DWT.

Much of the route will rely on natural waterways and ancient canals dating back to the Funan era, including 135 km of existing channels, 7 km of new canals and 38 km of branch canals.

The first 26-km phase, inaugurated in August 2024, was funded by Cambodian enterprises. The entire project is slated for completion in 2028, marking what officials call a historic milestone in the country’s transport modernisation drive.