Logo of Phnom Penh Post newspaper Phnom Penh Post - Pailin eyes half billion in loans




Pailin eyes half billion in loans

Pailin eyes half billion in loans

PAILIN authorities are seeking $500 million in foreign loans for comprehensive infrastructure

projects, and are asking the Government's assistance to secure the money.

Documents obtained by the Post show the money is to be used for extensive roading,

electricity, irrigation and other public works.

It was signed by Pailin Governor Y Chhean, General Ros Routha and Brigardier General

Chhun Yab.

A government source said that the Pailin Authorities have asked Prime Minister Hun

Sen to order the National Bank of Cambodia to sign guarantees for their loan applications.

However the source said this is likely to be complicated because the amount of the

loan exceeds the NBC's capitalization by $150 million.

Hun Sen is understood to have pulled up short of exposing the country to a $.5 billion

liability without some investigation into its viability, but is generally in favor

of the concept.

He has forwarded the proposal to the Cambodian Development Council (CDC) for their

approval.

Government spokesman Khieu Kannarith said he heard of the proposal. He said it would

need to go to the Council of Ministers for the final go-ahead.

A source at the CDC said they had been aware for some time that Pailin was planning

massive infrastructure projects, but that they had not yet seen the details.

But he said he thought it stood a good chance of being approved because it was in

line with the Government policy to rebuild the country.

He added that the Agriculture Ministry was looking at what land could be provided

for the project.

He said the project and its loans have been kept very secret, adding there were other

even more massive investment plans in the pipeline.

One diplomat spoken to by the Post said that he had heard of Y Chhean's plans to

build a $400m hydro electric plant several months ago.

He said he believed it to be viable, and if Hun Sen provided assistance it might

bring the semi-autonomous region closer to the Government.

It is unknown who is being approached to lend the money.

The World Bank said that it had not been approached to fund the projects.

However, a spokesman commented that the public works looked like good ideas that

"would provide employment."

The spokesman added that the most likely source would be the banks that Pailin already

deals with such as the those based in Thailand.

Meanwhile, the prospect of the country being landed with such a huge liability has

shocked opposition leader Sam Rainsy. He said that such projects and their funding

needed to be transparent and discussed openly.

The full proposal is outlined below:

First Phase:

Communication System. Rebuilding the following road links:

  1. National Route 10 from Battambang to Khmer-Thai borders 118 km long by 8m wide.
  2. The streets in the city (642 km)
  3. The streets around the city (53 km)
  4. The road from Pailin to Samlot district (58 km)
  5. The road from Pailin to Malai district (110 km)
  6. The road from Pailin to Koh Kong port (205 km)
  7. Bridges crossing the Route 10 (25)
  8. Bridges in Pailin (19)
  9. Drainage culverts under the road (242)

Water Supply System and Drainage:

  1. Build a 2,000,000 m3 water reservoir
  2. Build a 5,000,000 m3 dam and sluice gate for farm land irrigation.
  3. Rehabilitate a 36 kilometer irrigation canal
  4. Drainage system in the city (667km)
  5. The drainage pipes for waste (1,334 km)

Electricity and other projects

  1. Hydroelectric dam
  2. Generator (50 MKW)
  3. Electric Wire Post 32,201
  4. Buildings
  5. International standard Airport.
  6. International Market and five star hotel
  7. Radio Station (short wave) and TV station with 20 K.H.A
  8. Hospital (500 rooms)
  9. One Bank Building
  10. Kindergarten School (40 rooms)
  11. Junior High School (20 rooms)
  12. Secondary School (10 rooms)
  13. Tourism Areas (9 sites)n- Vocational Training School (50 rooms)

Second Phase:

  1. Sugar refinery
  2. Land for planting sugar cane (50,000 hectares)
  3. Land for building factory (1000m and 1000m)

MOST VIEWED

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped

  • Kingdom, China rebut basis for US sanctions

    The Council for the Development of Cambodia, the Ministry of Foreign Affairs and International Cooperation, and Tianjin Union Investment Development Group Co Ltd (Tianjin) have responded to US sanctions on Union Development Group Co Ltd (UDG), a Chinese-owned company currently developing the sprawling $3.8 billion Dara

  • Influenza breaks out in eight provinces

    Nearly 600 people have been infected with influenza in eight provinces in the past month, Ministry of Health spokesperson Or Vandine said. The ministry is advising extreme caution. A report released by Vandine on Saturday said the Ministry of Health observed transmissions of influenza between August 15

  • CNRP activist freed; Sam Rainsy pledges return to Kingdom

    The Phnom Penh Municipal Court on Monday released former CNRP activist Oeur Narith on bail after the court ended its questioning on suspicion of receiving money from abroad and plotting to overthrow the government, according to the authorities. National Police spokesman Chhay Kim Khoeun confirmed

  • Hun Sen says developing nations ‘targets of rivalry’

    Prime Minister Hun Sen spoke at the virtual UN General Assembly on Monday, saying that developing nations often become targets of punishment for their imperfections when they don’t rise to the standards of developed countries. He said rivalries between superpowers often hamper developing countries’