Phnom Penh Municipal officials signed a memorandum of understanding Wednesday with Singaporean building giant SembCorp Construction Pte Ltd forming a joint venture company to carry out $300 million worth of improvements to the city.
First Deputy Governor Than Sina, who signed the agreement on behalf of the municipality, said after the ceremony that a 50-50 jointly owned company will be set up between the city and SembCorp to undertake the massive renovation project.
According to Than Sina, the project will focus on improving the city’s drainage and flood control systems, upgrading Phnom Penh’s roads and building a municipal dump site.
“This project is a great investment because the Singaporean company will employ demobilized soldiers and Cambodian university students,” Than Sina said.
However, details of which side will actually invest the $300 million were unclear Wednesday.
According to Than Sina, details regarding the financial investment will be kept confidential between the municipality and SempCorp.
Paul Chain, SempCorp Construction president, said after the signing Wednesday that his company is not investing money in the project but will act only as the project’s engineers and contractors.
Financiers will fund the project, Paul Chain said, declining to give any more details.
Phnom Penh Governor Chea Sophara said Wednesday that a detailed contract will be signed with SempCorp next month and investment details will then be worked out.
However, the municipality also will not be providing money for the project, Chea Sophara said.
George Yeo, Singapore’s Minister of Trade and Industry who is on a four-day visit to Cambodia, said during the ceremony that ongoing political stability has given Cambodia a unique opportunity to attract foreign investment and develop.
Also attending the meeting were newly appointed Singaporean Ambassador to Cambodia Verghese Mathews and Cambodian Minister of Commerce Cham Prasidh.