Cambodia's flagship canal in hot water as China funding dries up

23/11/2024 13:32

        At a ceremony in August, Cambodia's leader Hun Manet knelt to receive blessings from saffron-robed monks as fireworks and balloons heralded the breaking of ground for a canal he hopes will transform his country's economic fortunes.
        
        Addressing hundreds of people waving the Cambodian flag, Hun Manet said China would contribute 49% to the funding of the Funan Techo Canal that will link the Mekong River to the Gulf of Thailand and reduce Cambodia's shipping reliance on its neighbour Vietnam.
        
        Cambodia's government estimates the strategic infrastructure project will cost $1.7 billion, nearly 4% of Cambodia's annual gross domestic product.
        
        But months later, China's financial contribution remains in doubt.
        
        Four people directly involved in the investment plans or briefed about them told Reuters Beijing has expressed misgivings about the project and has not made definitive commitments on its funding.