China Exim Bank to Finance Nearly $1 Billion for Cambodia's Ambitious Funan Techo Canal Project

PHNOM PENH, Sept 9, 2026 (KPT) — China’s Exim Bank has agreed to provide almost $1 billion in financing for a canal linking Cambodia’s interior to the sea, officials said Thursday, as Phnom Penh presses ahead with one of its most ambitious infrastructure schemes. Deputy Prime Minister Sun Chanthol, also First Vice Chairman of the Council for the Development of Cambodia, witnessed the signing of the agreement on Wednesday between China Exim Bank and the Funan Techo Coastal‑Inland Waterways Company. The Funan Techo Canal will run 193 kilometres through Kandal, Takeo, Kampot and Kep provinces, connecting the Mekong River system to the sea. Designed for vessels of up to 3,000 deadweight tonnes, the project is expected to reduce transport costs, boost logistics competitiveness and spur industrial zones, agricultural processing, satellite cities and tourism along its route. Authorities say the canal will follow ancient waterways dating to the Funan era, combining 135 kilometres of existing channels with 7 kilometres of new excavation and 38 kilometres of straightened waterway. A 26‑kilometre stretch linking Prek Takeo to the Bassac River will be financed by Cambodian state enterprises and local firms, while a 159‑kilometre section from Takeo to Kep will be jointly financed with China Road and Bridge Corporation. The deal adds to a series of Chinese‑backed projects in Cambodia, including expansion of Sihanoukville port and Techo International Airport. China accounted for 10% of Cambodia’s public debt stock by currency in mid‑2026, with infrastructure absorbing 82% of loan disbursements in the first half. Chanthol urged international business leaders to explore opportunities linked to the canal, which officials say will reshape Cambodia’s shipping, reduce reliance on routes through Vietnam and strengthen regional trade links.