New Construction research report from Business Monitor International is now available from Fast Market Research

Boston, MA -- (SBWire) -- 01/28/2014 --BMI View: We continue to hold the view that the stellar performance by Cambodia's construction sector in 2012 (where construction real growth reached 16.3%) is not sustainable in 2013 and 2014. Even though we have seen in H113 the return of foreign investment and the increase in domestic project financing in Cambodia, several risks continue to dampen the near-term growth potential of the sector - namely greater policy uncertainty following the outcome of the July 2013 general elections - growing competition from Myanmar, limited upside to foreign investment and the resolution of land disputes in the favour of local residents.

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Key developments in Cambodia's infrastructure sector:

- In October 2013, the Cambodian government awarded ALEX Corporation a US$119mn 29-year concession to build and operate power transmission lines between power plants in Preah Sihanouk province and Phnom Penh under a build-operate-transfer framework. The contract was awarded after the government approved the project following a feasibility study done by the China Heavy Machinery Company.
- In November 2013, officials at the Sihanoukville Autonomous Port announced that the construction of a new multi-purpose terminal is scheduled to start in early 2014. The US$80mn project is funded by a loan from the Japanese government and is scheduled to be completed by late-2016.
- In November 2013, a joint venture consisting of France-based Vinci and Malaysia-based Muhibbah Engineering won two contracts (worth US$87mn) to construct and expand the terminal building and the refurbishment of the airports in Phnom Penh and Siem Reap. The contracts are expected to be completed by end-2015. Once completed, both airports will double their capacity to 5mn passengers per annum. The contracts were awarded by airport operator Cambodia Airports. Cambodia Airports is 70% owned by Vinci Group, with the remaining 30% is owned by Muhibbah Masteron Cambodia. Cambodia Airports holds the concession for the development and the management of Cambodia's three international airports in Phnom Penh, Siem Reap and Sihanoukville.

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