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Cambodia’s $1.7 bln Funan Techo Canal targets 2028 finish

Terry Felix​​​​   On February 3, 2026 - 7:35 am​   In Economics   1mn Read
Cambodia’s $1.7 bln Funan Techo Canal targets 2028 finish Cambodia’s $1.7 bln Funan Techo Canal targets 2028 finish

PHNOM PENH, Feb. 2, 2026 — Cambodia’s Funan Techo Canal, the country’s first major modern inland waterway project, is moving forward after officially breaking ground in August 2024, with construction targeted for completion in 2028, a finance ministry official said.

The nearly $1.7 billion project was launched under Prime Minister Hun Manet, with authorities confirming that foundation works began in 2025 at selected sections. Contractors have requested that resettlement and impact mitigation along the route be addressed first to ensure smoother construction, Meas SokSenSan, a secretary of state at the Ministry of Economy and Finance, told a public forum in Phnom Penh.

Stretching almost 180 km, the canal will link the Mekong–Bassac river system to the Gulf of Thailand, running through Kandal, Takeo, Kampot and Kep provinces. The waterway is designed with a top width of 100 metres, bottom width of 80 metres, a depth of 5.4 metres, and two navigation lanes.

Officials say the project will cut transport time, distance and costs, create logistics hubs and new satellite ports, expand agriculture, irrigation and aquaculture, and support Cambodia’s fourth economic pole. It is also expected to generate jobs at Phnom Penh Autonomous Port, Sihanoukville Autonomous Port, and related facilities, while spurring urban development and real estate growth.

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