One of the world’s largest airports in south-eastern Kandal province will be built by the Cambodian government. Although the plans have been approved the key players are yet to work out the details.
It was revealed that a proposal from Cambodia Airport Investment was approved to build a US$1.5 billion (S$2 billion), 2,600ha airport in Kandal province’s Kandal Steung district, about 30km south of Phnom Penh.
As per the document the Cambodia Airport Investment is a joint venture between local conglomerate Overseas Cambodia Investment Corporation (OCIC) and the Cambodian government’s State Secretariat of Civil Aviation (SSCA).
The OCIC had signed a cooperation framework agreement for a new Phnom Penh airport with the state-run China Development Bank.
It will be the ninth-largest airport in the world with 2,600ha, putting it just behind Chicago O’Hare airport (2,610ha), and ahead of China’s Beijing Capital International (2,330ha) while the size of the current Phnom Penh International Airport is about 400ha.
An investment of US$280 million will be made by the OCIC and the unspecified foreign banks will provide US$1.1 billion in funding.
90 per cent of the shares in the completed airport will be owned by OCIS and the rest will go to the SSCA.
However, Sin Chansereyvutha, a spokesman for the SSCA, said that there was was no detailed plan or agreement, and the aviation authority had not even met the OCIC to discuss the project yet.
The project will take a long time because they needed to negotiate on many criteria, on the frameworks of the agreement.
The government is expected to find a way to deal with Cambodia Airports and the company that currently holds a concession to operate Phnom Penh International Airport until 2040.
Cambodia Airports submitted plans to the government last year to expand both the Phnom Penh and Siem Reap airports to accommodate future growth in traffic.
However, the expansion plans were halted in the past by government officials, who instead preferred building new airports, financed by Chinese banks, in both locations.
Cambodia Airports is majorly-owned by the France’s Vinci Group.
