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Royal Group inks $35 million road deal on Koh Rong

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Royal Group CEO Kith Meng (left) and Asian Trails CEO Luzi Matzig. Supplied

Royal Group inks $35 million road deal on Koh Rong

Royal Group Koh Rong Development Company and Sinohydro Corporation Limited reached a $35 million deal on Tuesday to build a 70km road on Koh Rong Island.

The road will be 8m wide and is expected to take 16 months to complete, according to the plan approved by the Council for the Development of Cambodia’s (CDC)Inter-Ministerial Committee on October 9, 2010, a Royal Group press release said.

CDC deputy secretary-general Chea Vuthy said at the signing ceremony in Preah Sihanouk province that the deal proves Royal Group’s commitment to the island’s development.

Royal Group has held the lease agreement with the government since February 28, 2008, for the development of the island into a beautiful attraction for local and foreign tourists.

“I appreciate the Royal Group building good cooperation with the authorities and the people living on Koh Rong. Besides announcing the 70km road, I hope Royal Group will also start building other projects in the approved master plan,” Vuthy said.

Preah Sihanouk provincial governor Kuoch Chamroeun presided over the ceremony.

“With the construction of the road, the company will continue to build other vital infrastructure projects like drainage systems, and those for power generation and water supply, and an airport.

“I believe there is a lot of need for the development of Koh Rong Island, particularly water treatment, a rubbish-recycling plant, and a power plant to sustain and beautify the island,” he said.

The master plan between Royal Group and the government was approved by the CDC in 2008, and the island was officially handed over to the company.

The company has registered the land in line with sub-decree No 114 and received 33 long-term lease certificates.

One project is The Royal Sands, a five-star resort that opened in 2018. The resort is a joint venture between Royal Group and Asian Trails CEO Luzi Matzig who invested $40 million in the first phase of investment on the island.

Koh Rong is Cambodia’s largest island at 78sq km and lies approximately 22km to the northeast of Sihanoukville. It has 28 beaches and can be reached by boat in approximately 45 minutes.

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