In a visionary move set to reshape Cambodia's economic landscape, senior officials anticipate a windfall of $88 million annually in tran...
In a visionary move set to reshape Cambodia's economic landscape, senior officials anticipate a windfall of $88 million annually in transportation revenue from the transformative Funan-Techo canals by 2010, surging to an impressive $570 million yearly in the foreseeable future.
During a recent discourse, Mr. Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia, lauded the potential of the Funan-Techo Canal Project, underscoring its pivotal role in attracting investments and spurring economic progress. He highlighted the project's multifaceted benefits, including bolstering employment, augmenting national tax revenues, and catalyzing urbanization and infrastructure development.
Mr. Chanthol emphasized the robust financial viability of the project, citing an extraordinary Estimated Internal Rate of Return (EIRR) of approximately 30%. This remarkable figure surpasses the standard threshold of 12% set by both the Ministry of Economy and Finance and the World Bank, underscoring the project's exceptional financial outlook and potential for substantial returns.
Furthermore, Mr. Chanthol elaborated on the myriad additional benefits stemming from the Funan-Techo canal initiative, including the establishment of commercial hubs and transportation centers, fostering new satellite developments, and expanding agricultural and aquacultural zones. Such wide-ranging advantages are poised to propel Cambodia's economy into a new era of prosperity and sustainable growth.
The Funan-Techo Canal Project, spanning approximately 180 kilometers across Kandal, Takeo, Kampot, and Kep provinces, aims to connect Cambodia's river systems with the sea. With an estimated cost of $1.7 billion, the meticulously planned project has undergone extensive feasibility studies, spanning a duration of 26 months.
As Cambodia embarks on this ambitious endeavor, the Funan-Techo Canal Project stands as a testament to the nation's commitment to fostering economic progress and sustainable development. With its unprecedented financial viability and vast socio-economic benefits, this transformative initiative is poised to propel Cambodia's growth trajectory to new heights, ushering in an era of prosperity and opportunity for generations to come.
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