The municipality has agreed to extend by 15 years a contract that will keep two taxi stations inside city limits, despite efforts by Phnom Penh Governor Chea Sophara to move taxis outside the city to reduce congestion.
The Phsar Thmei and Chbar Ampov taxi stations will remain open, as well as a fish products distribution center in Russei Keo district.
Until recently Chea Sophara tried to ease traffic conditions on Phnom Penh’s increasingly chaotic roads by banning taxis and keeping stations on the outskirts of the city. But the plan has not worked, Chea Sophara said.
“Even when we forced them to use parking at the outskirts of the city, they still tried to come into Phnom Penh,” he said.
Chea Sophara said he then agreed to the 15-year contract, which carries a $300,000 investment from Hun Vann Thy, who owns all three businesses. The contract awaits official approval from Prime Minister Hun Sen and the Ministry of Finance.
Nget Chandavy, director of the city’s finance department, had a positive analysis of the investment, showing the municipality gets $252,483 in taxes in 15 years.
The Hun Vann Thy Company Car Station will make a total of $1,644,300 on the three businesses over 15 years, according to Nget Chandavy. The Phsar Thmei taxi station will make about $2,950 in its first year and $648,000 over 15 years. The fishing products distribution center will make $550,800 over 15 years.
Hun Vann Thy will be allowed to change the businesses if he wishes to build a parking lot or make other investments that would make money for the municipality and improve the city’s appearance by taking cars off the street.
