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

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Angkor photo rules clarified

    The Apsara National Authority (ANA) denied that it had banned the use of camera tripods in the Angkor Archaeological Park, explaining that the confusion stemmed from a long-standing rule which required commercial photographers and videographers to apply for permission to film. The explanation followed a

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At