Logo of Phnom Penh Post newspaper Phnom Penh Post - Kampot rail scheme dismissed as ‘fantasy’

Kampot rail scheme dismissed as ‘fantasy’

Content image - Phnom Penh Post
An investment scheme plans to raise funds for a high-speed rail link to Kampot. Photo supplied

Kampot rail scheme dismissed as ‘fantasy’

Kampot provincial governor Cheav Tay created an unauthorised investment scheme last week. But the plan has been dismisssed as a “baseless fantasy”.

He set up a firm called Kampot Capital Development, which plans to raise $50 million from individual investors to develop a high-speed rail and a provincial airport.

However, financial experts and capital market professionals rubbished the scheme. They told The Post yesterday that the project is unlikely to happen as it is nonsense from both a legal viewpoint and an economic perspective.

They said Tay’s plan is what is known as a “Collective Investment Scheme (CIS)”.

Tay proposed the plan during an internal meeting in Kampot, where video was taken of his speech and shared on social media.

In his speech, Tay said he plans to collect $50 million in funding by trading publicly and offering shares, which individuals could buy at $1,000 each.

He said the funds raised were to be used to set up an investment firm called Kampot Capital Development which aims to develop a high-speed rail and an airport.

“We [will issue] 50,000 shares in order to collect $50 million. Shareholders could include nationals as well. Among other ways, I’ll take a risk and purchase 100 shares equal to $5 million to lead the way in this endeavour."

“In the future, Kampot province will have a high-speed rail connecting Phnom Penh to Kampot in a matter of an hour. We also plan to have a new airport that can attract local and international travellers alike,” Tay said in the video shared on social media.

No representative from the Securities and Exchange Commission of Cambodia (SECC) could be reached for comment on Sunday.

Cambodia Securities Exchange (CSX) CEO Hong Sokhour stated that the plan should be considered a CIS. For any CIS project to be put in operation, it must first have approval from the SECC. Sokhour further noted that as he understands, the SECC has never approved any CIS project in Cambodia to this date.

“To operate such a project, they need to get approval from the SECC first, otherwise they have no authorisation to collect the funds,” he said.

RHB Indochina Securities’ CEO Iv Ranarith said yesterday that the plan was proposed with an insufficient understanding from either a legal or economic standpoint.

“The project does not make any economic sense,” he said.

MOST VIEWED

  • All inbound flights set to face added scrutiny

    Ministry of Health spokesperson Or Vandine said on Monday that the ministry is monitoring all inbound flights, after it was announced that only those from Malaysia and Indonesia will be temporarily cancelled from August 1. Vandine said on Monday that the two countries were identified as

  • Flights from Indonesia, Malaysia cancelled

    A Ministry of Health official has warned of the possibility of Covid-19 spreading through community transmission after the total infected cases in the Kingdom rose to 225. Ministry spokeswoman Or Vandine told reporters on Saturday that the possibility of community transmission cannot be overlooked and that

  • Man in quarantine dies of ‘overdose’

    The Ministry of Health on Thursday said a Cambodian migrant worker who died while being isolated at a quarantine centre in Tbong Khmum province’s Kroch Chhmar district may have died from syncope or overdose of tablets. In a statement, the ministry said the 21-year-old