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Agreement to boost construction sector

Agreement to boost construction sector

An agreement was signed between Cambodia’s Constructors Association (CCA) and the Ministry of Land Management, Urban Planning and Construction two days ago, to tighten enforcement on construction companies here in making them meet industry standards.

The ministry’s head, Im Chhun Lim, said that Cambodia’s construction and real-estate sector is gaining interest from both local and foreign investors because of the country’s political stability and economic improvement.

The memorandum of understanding would therefore boost cooperation between the two agencies in pushing companies to use proper construction materials, techniques, and ensuring that their activities have little impact on the environment, he said.

It would also make it easier to monitor the prices of construction materials, whether for imports or exports, as well as the quality of construction machinery being used in Cambodia, he added.

Im signed the agreement with CCA’s president, Pung Kheav Se, who also heads the Overseas Cambodia Investment Corporation, the developer of Phnom Penh’s Diamond Island satellite city. CCA was established in October 2011 for domestic and foreign construction companies to exchange experiences and expertise.

Pung said that the sector is one of the pillars supporting the country’s economic growth after it was hit hard by the global financial crisis. “CCA intends to participate in improving the construction sector especially in the collaboration and exchange of experience on the construction of buildings with the ministry.”

According to the Ministry of Land Management, Urban Planning and Construction, the sector received more than $2.1 billion worth of construction projects in 2012, compared to $1.2 billion in 2011.

Since 2000 until the end of March this year, 1,229 companies have been registered, of which 430 are domestic construction companies, 118 foreign-owned construction companies, 13 domestic plan design companies and five foreign-owned construction companies, the Ministry’s figures showed. 

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