Cambodia prepares for groundbreaking of $1.4 billion Funan Techo Canal project

TAKEO, April 9, 2026 (KPT) – Cambodia is set to break ground on the Funan Techo Integrated Water Resources Management Project (Phase II), a $1.4 billion canal development seen as a landmark in the country’s infrastructure drive, officials said Thursday.

The second phase, spanning 151.6 kilometers from Prek Pou in Kandal province to Kep on the southern coast, will be officially launched on April 11 in a ceremony presided over by Prime Minister Hun Manet.

The project builds on the first 26-kilometer section inaugurated in August 2024. Deputy Prime Minister Sun Chanthol, who also serves as vice chairman of the Council for the Development of Cambodia, led an inter-ministerial delegation this week to inspect the site and oversee preparations.

According to the Ministry of Economy and Finance, the canal is Cambodia’s third major public-private partnership project under legislation introduced in 2021. The full development will stretch about 172 kilometers and is expected to enhance water resource management, improve inland waterway transport, and reduce logistics costs.

Officials said Phase 1, with a depth of 14.5 meters, is about 65 percent complete and scheduled for full completion by 2028. Phase 2, designed with a depth of 19.5 meters, is currently in the bidding stage, with construction due to begin mid-2026 and finish by 2029.

Once all three phases are completed, the canal will transform Cambodia’s transport network, strengthening trade connectivity and supporting broader economic growth.