Logo of Phnom Penh Post newspaper Phnom Penh Post - October construction approvals up 16pc

October construction approvals up 16pc

October construction approvals up 16pc

Government signed off on building projects worth $212m in October and notes that activity in the sector is picking up

Building revival

  • $212m in approvals for October marks 16pc rise on this time last year when building began to slow
  • Indicative value slides 19.6pc to $1.89bn on projects approved over same period
  • Many delayed projects have resumed, says government
  • Council of Ministers approved property law on December 4

Source: Ministry of Land Management

THE Ministry of Land Management, Urban Planning and Construction approved 176 construction projects worth a combined US$212 million in October, according to figures released Tuesday.

The latest round of approvals brings the number of new projects given the go-ahead to 1,981 over the first 10 months of the year, up 16 percent on the same period in 2008. However, the book value of the approved projects was just $1.89 billion, 19.6 percent lower than the $2.35 billion indicative value of the projects approved to the end of October 2008, the figures showed.

Official November approvals were not available Tuesday, but Lao Tip Seiha, director of the ministry’s Department of Construction, said applications for at least 130 construction projects worth a combined $57 million had been provisionally approved and were still awaiting ministerial approval.

“We hope that the construction sector will continue to rise ... in the coming years, as more housing is still necessary for the Cambodian people,” he said. “It is the right time to launch construction activity at the moment, as it is the dry season and the economic situation seems to be getting better.”

Some projects which were delayed last year have been resumed."

Lao Tip Seiha said the effects of the global financial crisis were still being felt in the construction sector, with fewer applications for larger, ambitious developments, but that activity is picking up through smaller-scale projects. A number of developments on hold or scaled back as a result of the global financial crisis, among them Posco E&C’s $300 million residential development in Phnom Penh, had also resumed, he said.
“We are still receiving many construction applications from both local and foreign companies, and construction activity at construction sites is still going smoothly,” he said. “Some projects which were delayed last year have been resumed.”

Sam Rainsy Party lawmaker Son Chhay said the ministry needs to speed up its approval of construction projects, as delays have been causing problems in a sector already badly hurt by the global downturn.

Lao Tip Seiha said October approvals included some private hospitals, gas stations in Kratie and Kampong Cham provinces, supermarkets, a proposed 1,422-apartment building called Sony City, a $17 million concrete products manufacturing facility in Kandal province, and other factories in special economic zones in Phnom Penh and Preah Sihanouk province.

According to ministry figures, 2,156 construction projects worth $3.19 billion were approved in 2008.

CPL Cambodia Property President Cheng Kheng said the impending passage of a law allowing foreigners to own units in apartment and office buildings will give a boost to the construction sector.


  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s