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New Market Research Report: Cambodia Infrastructure Report Q3 2013

Recently published research from Business Monitor International, "Cambodia Infrastructure Report Q3 2013", is now available at Fast Market Research


Boston, MA -- (SBWIRE) -- 07/29/2013 -- We believe that construction activity in Cambodia could experience a mild recovery in 2013 due to renewed interest from foreign investors and increased public spending on construction. We are forecasting construction real growth to reach 7.4% in 2013, compared with 6.6% in 2012. However, this growth rate for 2013 is below the average growth rate seen over the past decade. This underperformance is due to a potential decline in Chinese investment and the lack of resolution with land acquisition disputes. Despite these threats, our medium-term outlook for Cambodia construction remains sanguine due to the strong macroeconomic fundamentals for construction activity.

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Key developments in Cambodia's infrastructure sector:

- In April 2013, the Cambodian and Chinese governments signed agreements for US$500mn in soft loans and US$48mn in grants. These funds would be used for the construction of irrigation systems and 400km of roads a year in Cambodia over several years.
- In May 2013, NagaCorp announced that it had signed an agreement with the Cambodian government to develop a US$15mn private VIP terminal at the Phnom Penh International Airport. According to the company, the new terminal will be located at a different location from the existing passenger terminal and would have its own immigration facility, VIP lounge, food and beverage outlets. Anecdotal evidence suggests that the project could be completed by the end of 2013 or early-2014.
- In May 2013, the Cambodian government officially signed the contract for a US$90mn concession loan from the Japan International Co-operation Agency (JICA). The loan will be used to improve access between Battambang and Sri Sophorn, and will involve the rehabilitation of a 83.5km section of the National Road 5. The project is expected to start construction in June 2015 and be completed by May 2018. According to JICA's master plan, the US$90mn loan is just the first of three phases. The second phase involves improving transportation capacity between Battambang to Thleamorm in Pursat province, while the last phase is between Thleamorm to Prek Kdam Bridge. Both sections however are still undersurveyed, according to the Phnom Penh Post.
- In May 2013, Thailand's Energy Minister Pongsak Ruktapongpisal said (cited from the Nation) that the country was discussing the possibility for the Electricity Generating Authority of Thailand to develop a 4,000MW coal-powered plant in Cambodia.

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