A local property developer inked an agreement yesterday with a Chinese construction firm to form a joint venture company that aims to funnel Chinese investment into infrastructure projects and secure coveted government-backed contracts for building roads, bridges, seaports and airports.
Sear Rithy, chairman of Cambodia’s WorldBridge Land, signed a memorandum of understanding with Liang Rong, vice chairman of China-based Sino Great Wall, setting the framework for a joint venture agreement that could be finalised within a month.
“The joint venture structure would see WorldBridge holding 40 percent of new company with Sino Great Wall holding 60 percent,” said Rithy.
“We do not have any investment capital yet as we are currently bidding on some infrastructure projects,” he said, adding that once the joint venture secures projects from the government the firm can start bringing in Chinese capital to finance infrastructure projects.
The two firms are already working together on other projects. WorldBridge Land’s joint venture with Singapore-based Oxley International Holdings has contracted Sino Great Wall to build its $500 million mixed-used development The Peak and the $300 million The Bridge.
Rong said that with its current collaboration with WorldBridge Land, and the fact that Sino Great Wall is listed on the Shenzhen Stock Exchange, it was in a good position to raise investment capital to fund infrastructure projects.
“We hope that we can bring in Chinese funds for public infrastructure projects and support our good friendship between the two countries under China’s One Belt, One Road policy,” he said.
He added that with Cambodia’s economic growth, the Kingdom needs approximately $3 billion in infrastructure spending in the next few years to keep up with development.
“We have been very successful in promoting public-private sector projects in China and other parts of Asia and we will bring that experience here,” Rong said. “And we hope that WorldBridge can help us secure projects with the government.”
Prime Minister Hun Sen said back in April of this year that Cambodia needs to spend between $500 million and $700 million annually on infrastructure to keep up with the current rate of economic growth.