The Ministry of Mines and Energy on Friday awarded licenses to the Phnom Penh Autonomous Port to dredge sand in Kompong Cham and Kandal provinces, the ministry said.
Dith Tina, a spokesman and secretary of state of the ministry, said the licenses were granted following a request from port officials.
“The ministry has just decided to award licenses to the port to dredge sand to supply the market…and we hope that the sand price in the market will drop significantly,” Mr. Tina said, adding that the current prices are between $16 and $20 per cubic meter.
The two-year-validity licenses are for sites in Kampong Cham province’s Kang Meas district and Kandal province’s Mok Kampoul and Kien Svay districts, he said.
Under the licenses, the port is required to contribute $0.40 to the national budget for every cubic meter of sand sold, $0.20 to communities in close proximity to the sites, and $0.01 to the ministry, said Mr. Tina.
Hei Bavi, general director at Phnom Penh Autonomous Port, said that sand dredged by the port would be sold for between $4.50 and $5.50 per cubic meter and that operations will commence after the Khmer New Year.