Logo of Phnom Penh Post newspaper Phnom Penh Post - Royal Group inks $35 million road deal on Koh Rong

Royal Group inks $35 million road deal on Koh Rong

Content image - Phnom Penh Post
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.

MOST VIEWED

  • Restrictions re-imposed in capital as Covid cases surge

    Amid the ongoing community outbreak of Covid-19, which has shown no sign of subsiding with 750 infections and 10 deaths reported on June 2 alone, the Phnom Penh Municipal Administration has decided to re-impose the suspension of all occupations and business activities deemed as posing high risk of

  • Phnom Penh-Sihanoukville expressway 51% complete

    The construction of the nearly $2 billion Phnom Penh-Sihanoukville Expressway is 51.35 per cent complete and is expected to be finished in 2023, according to Ministry of Public Works and Transport secretary of state Vasim Sorya. Invested in by Cambodian PPSHV Expressway Co Ltd, the first expressway in

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • First 7-Eleven store to open mid-June, ambassador says

    Thai retail conglomerate CP All Pcl will open Cambodia’s first 7-Eleven convenience store in mid-June, Cambodian ambassador to Thailand Ouk Sorphorn told The Post on June 1. The Bangkok-listed 7-Eleven franchise operator, the retail arm of Charoen Pokphand Group Co Ltd, granted CP All (Cambodia)

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • US embassy guard gets Covid despite two doses of Pfizer jab

    The Covid-19 tracking commission on June 4 said a security guard at the US embassy in Phnom Penh had contracted the novel coronavirus, despite having received a second dose of the Pfizer-BioNTech shot two weeks ago. Embassy spokesperson Chad Roedemeier confirmed the SARS-CoV-2 infection to The