PM Defends Funan Techo Canal Project, Says It Will Deliver Long-Term Economic Gains

TBONG KHMUM, Cambodia, May 27, 2026 (KPT) — Prime Minister Samdech Thipadei Hun Manet on Tuesday defended Cambodia’s multi-billion-dollar Funan Techo Canal project, insisting the ambitious infrastructure development will deliver broad long-term economic benefits despite concerns over its high construction and operational costs.

Speaking at the inauguration of the KIMS Rubber (Cambodia) processing plant in Tbong Khmum province, Hun Manet said critics were focusing too narrowly on short-term financial returns rather than the wider economic impact.

“Some people still do not trust the benefits of the Funan Techo Canal project. They may look only from a business perspective and think that the canal requires huge investment and operational costs, meaning Cambodia will not profit,” he said. “But as an economist, I do not look only at accounting revenue figures. I look at the broader economic benefits.”

The premier stressed that the government remained committed to the project, arguing it would strengthen Cambodia’s transport capacity, logistical independence, irrigation systems and long-term competitiveness. He said the canal would support agriculture, agro-industry, logistics and trade, while opening opportunities for Special Economic Zones and industrial activity along the corridor.

“I guarantee that this Funan Techo Canal project will not result in losses — it will bring profits,” Hun Manet declared.

The Funan Techo Integrated Water Resources Management Project is one of Cambodia’s largest infrastructure initiatives and is seen as strategically important for reducing reliance on neighboring countries’ ports and transport routes.

In April, Cambodia launched construction of the second section of the canal, a $1.4 billion development linking the Mekong River system to the sea. The 151.6-kilometer stretch runs from Prek Po in Kandal province to Kep on the coast, following the inauguration of the first 26-kilometer section in August 2024. Once completed, the canal will span 172.6 kilometers, tracing existing waterways and historic canal paths dating back to the ancient Funan era.

The project gained momentum after agreements signed during Chinese President Xi Jinping’s state visit in April 2025, including investment and construction deals under a public-private partnership framework backed by Chinese grants and loans. According to the Ministry of Economy and Finance, the canal is Cambodia’s third major PPP project under legislation introduced in 2021.