Logo of Phnom Penh Post newspaper Phnom Penh Post - OCIC to build airport with SCA

OCIC to build airport with SCA

Content image - Phnom Penh Post
Aircraft parked on the tarmac at Sihanoukville International Airport. The new airport in Phnom Penh will be a 4F class airport and occupy 2,600ha. Heng Chivoan

OCIC to build airport with SCA

Cambodia Airports (SCA) and Overseas Cambodia Investment Corporation (OCIC) have agreed to jointly develop the new airport which will serve Phnom Penh, State Secretariat of Civil Aviation (SSCA) spokesman Sin Chansereyvutha said on Wednesday.

He told The Post that SSCA secretary of state Mao Havannal led a meeting on Tuesday to discuss the project with representatives from OCIC and Vinci Airports, which is SCA’s parent company based in France.

He said both companies agreed to draft an agreement or memorandum of understanding before February 13 outlining their cooperation on the new project, which is monitored by the SSCA.

“I’m optimistic that OCIC has enough human resource, financial and technical capacity for the new airport project,” said Chansereyvutha.

SCA communications and public relations director Khek Norinda told The Post on Wednesday that the firm expresses its firm commitment to fulfil the duties that the government entrusted it with in 1995.

“Accompanying the government in designing, developing, financing and managing new international airport projects – in particular, the new Phnom Penh airport project – is part of that mission.

“Cambodia Airports remains available and committed to a constructive dialogue on the new Phnom Penh airport project under the guidance of the Royal Government of Cambodia and the SSCA,” Norinda said.

The acronym SCA comes from Cambodia Airports’ commercial name Societe Concessionnaire de l’Aeroport. It is a joint venture between Vinci Airports and Muhibbah Masteron (Cambodia) Co Ltd.

SCA operates the Kingdom’s three international airports – in Phnom Penh, Siem Reap town and Sihanoukville – under a 45-year concession dating back to 1995.

Speaking during Tuesday’s meeting, Havannal said both Vinci Airports and OCIC expressed their desire to work together on the project.

“In case of technical necessity, both parties shall provide consultation skills under the coordination of the SSCA,” he said.

The new airport will be a 4F class airport, occupying 2,600ha in Kandal province’s Kandal Stung district and will cost an estimated $1.5 billion to build.

Of that, $1.1 billion will come from loans from overseas banking institutions, while $280 million will be contributed by the OCIC.

It is unclear where the remaining $120 million – which will be used as registration capital – will come from.

OCIC will be responsible for 90 per cent of the project, while the remaining 10 per cent belongs to SSCA, Council of Ministers secretary of state in charge of civil aviation Tek Reth Samrach said in 2017.

Cambodia Airport Investment Co Ltd said three of the five firms that entered the bidding process for construction rights to the airport were chosen. All are Chinese owned.

MOST VIEWED

  • Investors’ $14.4M projects approved

    New investments from local and foreign sources continue to pour into Cambodia despite the Covid-19 pandemic remaining a lingering threat to regional and global economies. This comes as the Kingdom’s gross domestic product (GDP) is expected to contract between one and 2.9 per cent this

  • NagaWorld casinos set to reopen, schools to follow

    NAGACORP Ltd has requested that it be allowed to reopen its NagaWorld integrated resorts in Phnom Penh after the government recently approved casinos to operate again, provided they follow Covid-19 prevention measures set by the Ministry of Health. Mey Vann, the director-general of the Ministry

  • Rubber exports stretch 17%

    Cambodia exported 97,175 tonnes of natural rubber in the first five months of this year, surging 17 per cent compared to the same period last year as the Covid-19 pandemic stretches on, Ministry of Agriculture, Forestry and Fisheries official Khuong Phalla told The Post on Thursday. Phalla,

  • ASEM supports Kingdom’s proposal to postpone meeting amid Covid

    The 13th Asia-Europe Meeting (ASEM13) scheduled to be held in Cambodia in November has been postponed until mid-2021 due to the Covid-19 pandemic, a Ministry of Foreign Affairs and International Cooperation press statement released on Saturday said. The decision was made during a two-day meeting

  • Coffee maker roasted for producing fake product

    The Ministry of Interior’s Counter Counterfeit Committee will send a suspect to court on Monday after she allegedly roasted coffee mixed with soybeans and other ingredients, creating a product which could pose a high risk to consumers’ health. On the afternoon of July 2, the

  • Cash handout programme 80% complete

    Minister of Social Affairs, Veterans and Youth Rehabilitation Vong Soth confirmed on Thursday that the implementation of the Cash Transfer Programme For Poor and Vulnerable Households During Covid-19 had been implemented for more than 80% of the over 560,000 families. The programme was introduced one week ago.

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Where is Cambodia’s exit strategy that can save the economy?

    With the prospect of being slammed by a double whammy, the government is working on an economic recovery plan to deliver it from Covid-19 and the EU’s partial withdrawal of the Everything But Arms scheme in the next two to three years Cambodia is

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.