Phnom Penh Post. WEDNESDAY, 28 JULY 2010 15:00 SOEUN SAY
THE value of residential projects approved in Phnom Penh declined only slightly in the first half of this year from the same period last year, according to official figures.
The Ministry of Land Management, Urban Planning and Construction gave the green light to 2,253 housing units worth US$150 million in the first half of 2010, a 1.42 percent drop on the 2,352 worth $152 million approved in the first half of last year.
Figures for the whole of 2009 showed a 47.2 percent decline in the number of units approved compared with 2008.
Construction Department Director Lao Tip Seiha said there were positive signs for the construction sector despite the slight decline in approvals in the year to the end of June.
“It’s a good sign that the numbers remain stable,” he said.
A total of 35 large villas and 2,218 houses and flats have been approved this year, according to the ministry, from a respective 189 and 2,163 units granted the go-ahead last year.
Still, Lao Tip Seiha said he was concerned demand would outstrip supply particularly among people in the lower income brackets moving to Phnom Penh.
“We must add another 1.2 million homes in Cambodia by 2030,” he said.
Thursday, July 29, 2010
Construction to start soon on Phnom Penh port expansion
Phnom Penh Post. WEDNESDAY, 28 JULY 2010 15:01 CHUN SOPHAL
The Phnom Penh Autonomous Port is seen through a window of a guard post on the Japanese Friendship Bridge.
PHNOM Penh Autonomous Port is to quadruple its loading capacity in the next two years after securing US$68 million worth of Chinese financing for a second terminal 25 kilometres east of the capital, with construction slated to begin in September.
Authorities said yesterday that the second terminal would give Phnom Penh a loading capacity of about 300,000 TEU (20-foot equivilant unit) containers per year, a dramatic increase from the current limit of 60,000 to 80,000 TEUs per year.
The first US$28 million stage of the two-stage build – slated to begin in September and take 22 months to complete – will create a total capacity of 120,000 TEUs per year once complete. That figure will increase to 300,000 TEUs once the second stage is finished.
Hei Bavy, director general of the port, said that after receiving a loan from China last year the new port would be built in Kandal province’s Kien Svay district.
Hei Bavy said that China-based Shanghai Construction had been contracted for the first stage of construction. The first stage will cover an area of 12 hectares, and the second stage will cover another eight hectares.
“We hope that this construction project will enable the Phnom Penh Autonomous Port to ship more and more goods in the future,” he said.
The current port, first established in 1952 and renovated twice so far, has seen demand increase.
Hei Bavy said that if capacity was not boosted, goods shipments would inevitably face delays and obstruction.
“When the new port is completely constructed, we will use it as a place for loading containers so that big trucks will not cause traffic congestion in the capital,” Hei Bavy said.
Hin Theany, Division General Manager of Mitsui OSK Lines (MOL), said: “I think expanding the port is a good idea because it will help make freight shipment easier in the future when shipping activities increase beyond their current levels.”
The Cambodian government had been trying since early 2009 to secure the loan from the Chinese government to develop the port.
On October 15, Prime Minister Hun Sen signed deals worth $850 million with the Chinese government to spend on development projects in Cambodia. About $68 million was slated for the development of Phnom Penh’s port capacity.
Hei Bavy said that the second stage of construction might not be funded by the loan from China if the port proved to be capable of earning an income between $6 million and $10 million per year during the period of 2012 to 2015.
“We plan to use the money which the port earns by itself for the second-stage development project because the Chinese loan is too expensive,” he said.
The Phnom Penh Autonomous Port is seen through a window of a guard post on the Japanese Friendship Bridge.
PHNOM Penh Autonomous Port is to quadruple its loading capacity in the next two years after securing US$68 million worth of Chinese financing for a second terminal 25 kilometres east of the capital, with construction slated to begin in September.
Authorities said yesterday that the second terminal would give Phnom Penh a loading capacity of about 300,000 TEU (20-foot equivilant unit) containers per year, a dramatic increase from the current limit of 60,000 to 80,000 TEUs per year.
The first US$28 million stage of the two-stage build – slated to begin in September and take 22 months to complete – will create a total capacity of 120,000 TEUs per year once complete. That figure will increase to 300,000 TEUs once the second stage is finished.
Hei Bavy, director general of the port, said that after receiving a loan from China last year the new port would be built in Kandal province’s Kien Svay district.
Hei Bavy said that China-based Shanghai Construction had been contracted for the first stage of construction. The first stage will cover an area of 12 hectares, and the second stage will cover another eight hectares.
“We hope that this construction project will enable the Phnom Penh Autonomous Port to ship more and more goods in the future,” he said.
The current port, first established in 1952 and renovated twice so far, has seen demand increase.
Hei Bavy said that if capacity was not boosted, goods shipments would inevitably face delays and obstruction.
“When the new port is completely constructed, we will use it as a place for loading containers so that big trucks will not cause traffic congestion in the capital,” Hei Bavy said.
Hin Theany, Division General Manager of Mitsui OSK Lines (MOL), said: “I think expanding the port is a good idea because it will help make freight shipment easier in the future when shipping activities increase beyond their current levels.”
The Cambodian government had been trying since early 2009 to secure the loan from the Chinese government to develop the port.
On October 15, Prime Minister Hun Sen signed deals worth $850 million with the Chinese government to spend on development projects in Cambodia. About $68 million was slated for the development of Phnom Penh’s port capacity.
Hei Bavy said that the second stage of construction might not be funded by the loan from China if the port proved to be capable of earning an income between $6 million and $10 million per year during the period of 2012 to 2015.
“We plan to use the money which the port earns by itself for the second-stage development project because the Chinese loan is too expensive,” he said.
Malls race to be first in Kingdom's second city
Phnom Penh Post. WEDNESDAY, 28 JULY 2010 15:00 SOEUN SAY
The delayed Battambang Shopping Centre was empty when reporters visited this month. Jeremy Mullins
DEVELOPERS said yesterday that Borey Thmey Shopping Mall would be Battambang’s first, after the opening of Battambang Shopping Centre was pushed back a year.
The US$10 million four-storey Borey Thmey mall in Svay Por Commune will contain 600 units, its manager of sales administration Neang Nead Thanith said.
“We’re the first shopping mall in Battambang city, and we will allow our tenants to prepare their shops in November.
“We plan to open for business early next year,” she said.
Meanwhile, Phou Puy, the owner of 1,500-store Battambang Shopping Centre, said yesterday that his project would not be completed by the end of 2010, as it was claimed in April.
He revised the target for completion to the beginning of 2011.
“We are rushing to complete the project. Now, we’re doing only interior design,” he said.
The Post has visited the project site twice in the past month, and no work or construction equipment was in evidence on either occasion. Only the shell of the Battambang Shopping Centre was complete.
Borey Thmey Shopping Mall is owned by Lim Chhiv Ho, managing director of Attwood Import-Export.
It has sold about 80 percent of its store locations, Neang Nead Thanith said. “Customers will come here because it will be the first one in Battambang, and it is in a good location,” she said.
“Hopefully we can attract more shops to our mall next year, but realistically we don’t hope to sell out this year.”
Lao Tip Seiha, construction department head for the Ministry of Land Management, Urban Planning and Construction, said the ministry had approved Borey Thmey’s licence in 2008.
“The ministry will be proud to see the first new shopping mall in Battambang. We really do support them,” he said. “Battambang is a city with a lot of potential.”
The new mall will create local jobs and boost the local economy, he said.
The delayed Battambang Shopping Centre was empty when reporters visited this month. Jeremy Mullins
DEVELOPERS said yesterday that Borey Thmey Shopping Mall would be Battambang’s first, after the opening of Battambang Shopping Centre was pushed back a year.
The US$10 million four-storey Borey Thmey mall in Svay Por Commune will contain 600 units, its manager of sales administration Neang Nead Thanith said.
“We’re the first shopping mall in Battambang city, and we will allow our tenants to prepare their shops in November.
“We plan to open for business early next year,” she said.
Meanwhile, Phou Puy, the owner of 1,500-store Battambang Shopping Centre, said yesterday that his project would not be completed by the end of 2010, as it was claimed in April.
He revised the target for completion to the beginning of 2011.
“We are rushing to complete the project. Now, we’re doing only interior design,” he said.
The Post has visited the project site twice in the past month, and no work or construction equipment was in evidence on either occasion. Only the shell of the Battambang Shopping Centre was complete.
Borey Thmey Shopping Mall is owned by Lim Chhiv Ho, managing director of Attwood Import-Export.
It has sold about 80 percent of its store locations, Neang Nead Thanith said. “Customers will come here because it will be the first one in Battambang, and it is in a good location,” she said.
“Hopefully we can attract more shops to our mall next year, but realistically we don’t hope to sell out this year.”
Lao Tip Seiha, construction department head for the Ministry of Land Management, Urban Planning and Construction, said the ministry had approved Borey Thmey’s licence in 2008.
“The ministry will be proud to see the first new shopping mall in Battambang. We really do support them,” he said. “Battambang is a city with a lot of potential.”
The new mall will create local jobs and boost the local economy, he said.
Friday, July 23, 2010
Recovery watch: Real estate licences see modest rise
Phnom Penh Post. FRIDAY, 23 JULY 2010 15:01 SOEUN SAY
COMPANIES licensed to operate in the real estate and land valuation sector have slightly increased in Cambodia since January, a fact commentators hope could hint at a recovery in the industry after firm numbers halved during the financial crisis.
There are 42 real companies with licences to operate in the Kingdom, slightly more than the 34 licensed in January this year, Moa Pov, deputy chief of Ministry of Finance and Economy’s real estate division, said yesterday.
While the number of issued permits still lies far below the 74 companies licensed at the beginning of 2008, before a global economic melt-down hit the domestic real estate sector, he was hopeful for a full recovery of the operator numbers.
“If the real estate market recovers this year or next year those real estate and valuation companies will come back,” he said.
But Kerk Narin, general manager of Bonna Realty Group, said smaller real estate agents had struggled to remain open for business. The cost of getting a yearly licence and a certificate is 700,000 riels (US$167) – as defined by a 2007 prakas, or edict. Any company operating without a licence incurs a fine of 5 million riels ($1,250).
COMPANIES licensed to operate in the real estate and land valuation sector have slightly increased in Cambodia since January, a fact commentators hope could hint at a recovery in the industry after firm numbers halved during the financial crisis.
There are 42 real companies with licences to operate in the Kingdom, slightly more than the 34 licensed in January this year, Moa Pov, deputy chief of Ministry of Finance and Economy’s real estate division, said yesterday.
While the number of issued permits still lies far below the 74 companies licensed at the beginning of 2008, before a global economic melt-down hit the domestic real estate sector, he was hopeful for a full recovery of the operator numbers.
“If the real estate market recovers this year or next year those real estate and valuation companies will come back,” he said.
But Kerk Narin, general manager of Bonna Realty Group, said smaller real estate agents had struggled to remain open for business. The cost of getting a yearly licence and a certificate is 700,000 riels (US$167) – as defined by a 2007 prakas, or edict. Any company operating without a licence incurs a fine of 5 million riels ($1,250).
Thursday, July 22, 2010
Business laws in pipeline
Phnom Penh Post. WEDNESDAY, 21 JULY 2010 15:01 MAY KUNMAKARA
DRAFT laws governing commercial contracts and a new commercial court, set to launch in 2011, are months away from being submitted to the Council of Ministers.
Var Roth San, director of the Department of Intellectual Property Rights at the Ministry of Commerce, said yesterday the laws were likely to be approved by the National Assembly in 2011 once they had been checked by the Council of Ministers – a move expected in “ two or three months”.
“Once they are passed, a commercial court will probably be established sometime in late 2011 or early 2012,” he told reporters yesterday at an advanced workshop on civil adjudication of commercial, intellectual property and international trade cases, held in Phnom Penh.
The two laws were being drafted under “technical assistance” from development partners and have already undergone multiple drafts and revisions to prepare them for the final approval, he said.
Ten judges, selected by the Minister of Justice from Phnom Penh’s municipal court and the provincial courts of Takeo and Kampong Chnang, were attending the four-day session at the InterContinental Hotel this week to gain advice from commercial judges from ASEAN-member countries.
“This workshop is timely for our country as the government reforms the judicial system and prepares to establish the commercial court,” Var Roth San said.
“It benefits our judges, whose experiences and knowledge [in commercial law] is low because normally they are working on the general [case disputes].”
Chhorn Ravuth, manager of Confirel Co Ltd (Cambodia) which makes sugar, wine and vinegar, welcomed the news and said it would give local producers more confidence in protecting product brand names and business-dispute resolution.
“This will be good for us as we will have a place where we can deal with disputes,” he said. “Now when we have problems, we don’t know where we can go so we just try to resolve by ourselves.”
Var Roth San said the government would also set up a sub-committee for Intellectual Property Rights Enforcement and a sub-committee for Education and Public Awareness.
DRAFT laws governing commercial contracts and a new commercial court, set to launch in 2011, are months away from being submitted to the Council of Ministers.
Var Roth San, director of the Department of Intellectual Property Rights at the Ministry of Commerce, said yesterday the laws were likely to be approved by the National Assembly in 2011 once they had been checked by the Council of Ministers – a move expected in “ two or three months”.
“Once they are passed, a commercial court will probably be established sometime in late 2011 or early 2012,” he told reporters yesterday at an advanced workshop on civil adjudication of commercial, intellectual property and international trade cases, held in Phnom Penh.
The two laws were being drafted under “technical assistance” from development partners and have already undergone multiple drafts and revisions to prepare them for the final approval, he said.
Ten judges, selected by the Minister of Justice from Phnom Penh’s municipal court and the provincial courts of Takeo and Kampong Chnang, were attending the four-day session at the InterContinental Hotel this week to gain advice from commercial judges from ASEAN-member countries.
“This workshop is timely for our country as the government reforms the judicial system and prepares to establish the commercial court,” Var Roth San said.
“It benefits our judges, whose experiences and knowledge [in commercial law] is low because normally they are working on the general [case disputes].”
Chhorn Ravuth, manager of Confirel Co Ltd (Cambodia) which makes sugar, wine and vinegar, welcomed the news and said it would give local producers more confidence in protecting product brand names and business-dispute resolution.
“This will be good for us as we will have a place where we can deal with disputes,” he said. “Now when we have problems, we don’t know where we can go so we just try to resolve by ourselves.”
Var Roth San said the government would also set up a sub-committee for Intellectual Property Rights Enforcement and a sub-committee for Education and Public Awareness.
Monday, July 19, 2010
Foreign developers anticipate home run
Phnom Penh Post. MONDAY, 19 JULY 2010 15:01 NGUON SOVAN
DEVELOPERS have tipped a sub-decree allowing foreigners to own up to 70 percent of a condominium complex to boost Cambodia’s real-estate and construction sectors, despite a mellowing of the proposal from an initial draft.
Approved by the Council of Ministers on Friday, the sub-decree provides a 70 percent cap on the proportion of a housing development a foreigner can own.
The figure has fallen from an 80 percent limit set out in a draft presented by the Ministry of Land Management, Urban Planning and Construction last month, but remains far higher than the 49 percent earmarked in early versions of the foreign ownership law last year.
“The decision ... was to grant a greater percentage share to Cambodians and not make foreign ownership too dominant,” Nonn Pheany, spokesperson for the Land Ministry, said yesterday.
Despite the change, she billed the sub-decree as a starting point in encouraging foreign investors to push development forward.
Land and house prices in Cambodia have dropped between 40 to 60 percent from those recorded at the peak of the housing boom in early 2008.
Bretton Sciaroni, senior partner of Sciaroni & Associates and legal adviser to the government, said yesterday that the sub-decree had opened up
Cambodia’s economy to new opportunities.
“It would help Cambodia in a number of ways, not just to generate more long-term businesses but also to attract new outside investors,” he said.
He hinted that the move would help make Cambodia an attractive regional proposition, as the sub-decree is more “open” than housing laws in neighbouring countries.
In Thailand, foreigners are allowed own just 49 percent of a building.
Developers at Phnom Penh’s satellite cities also welcomed the government’s move yesterday, expressing hope that it will develop the market by boosting sales – as the number of investors able to buy into property increases.
“We expect that through the provision, more foreigners will consider Cambodia,” said Touch Samnang, project manager at the capital’s Diamond Island complex, yesterday.
Sung Bonna, president and CEO of Bonna Realty Group, also felt the sub-decree would make Cambodia a more attractive proposition to foreign investors.
But he warned that the sub-decree alone was not enough to secure FDI for the Kingdom's economy.
“Cambodia needs to grant more incentives to investors in various sectors,” he said.
DEVELOPERS have tipped a sub-decree allowing foreigners to own up to 70 percent of a condominium complex to boost Cambodia’s real-estate and construction sectors, despite a mellowing of the proposal from an initial draft.
Approved by the Council of Ministers on Friday, the sub-decree provides a 70 percent cap on the proportion of a housing development a foreigner can own.
The figure has fallen from an 80 percent limit set out in a draft presented by the Ministry of Land Management, Urban Planning and Construction last month, but remains far higher than the 49 percent earmarked in early versions of the foreign ownership law last year.
“The decision ... was to grant a greater percentage share to Cambodians and not make foreign ownership too dominant,” Nonn Pheany, spokesperson for the Land Ministry, said yesterday.
Despite the change, she billed the sub-decree as a starting point in encouraging foreign investors to push development forward.
Land and house prices in Cambodia have dropped between 40 to 60 percent from those recorded at the peak of the housing boom in early 2008.
Bretton Sciaroni, senior partner of Sciaroni & Associates and legal adviser to the government, said yesterday that the sub-decree had opened up
Cambodia’s economy to new opportunities.
“It would help Cambodia in a number of ways, not just to generate more long-term businesses but also to attract new outside investors,” he said.
He hinted that the move would help make Cambodia an attractive regional proposition, as the sub-decree is more “open” than housing laws in neighbouring countries.
In Thailand, foreigners are allowed own just 49 percent of a building.
Developers at Phnom Penh’s satellite cities also welcomed the government’s move yesterday, expressing hope that it will develop the market by boosting sales – as the number of investors able to buy into property increases.
“We expect that through the provision, more foreigners will consider Cambodia,” said Touch Samnang, project manager at the capital’s Diamond Island complex, yesterday.
Sung Bonna, president and CEO of Bonna Realty Group, also felt the sub-decree would make Cambodia a more attractive proposition to foreign investors.
But he warned that the sub-decree alone was not enough to secure FDI for the Kingdom's economy.
“Cambodia needs to grant more incentives to investors in various sectors,” he said.
Friday, July 9, 2010
Solar future for Cambodia
Phnom Penh Post. FRIDAY, 09 JULY 2010 15:03 JEREMY MULLINS
CAMBODIA’S rural electrification fund is planning a bulk purchase of 12,000 solar panel systems next month to help spread green power to rural villagers who are not connected to the national grid, its executive director said.
The REF – a World Bank-supported public institution aiming to provide electricity to every Cambodian village by 2020 – plans to sell the solar panels to rural households on a monthly payment basis, executive director Loeung Keosela said.
Foreign and domestic vendors will be invited to submit bids next month to supply the REF with 12,000 sets of solar panels, batteries and wiring, he said, which will then be sold individually to rural Cambodian households.
“If we procure in bulk sizes, hopefully the cost of individual systems will come down,” he added.
To obtain the new solar equipment, Loeung Keosela said rural families would be required to make a down payment, as well as monthly payments of around US$3 or $4 depending on the size of the system.
Many rural households already spend a similar amount per month on batteries or diesel generators, he said.
The project is funded by the World Bank’s $67.92 million Rural Electrification and Transmission project loan, which is set to expire on January 31, 2012.
The REF previously experimented with grants directly subsidising the cost of solar panels for households, he said, but the plan had limited success. “Only about 90 systems were sold,” he said.
Privately owned supplier Solar Energy of Cambodia director Mao Sangat said that private companies are increasingly selling solar power equipment in Cambodia, taking over from nonprofit organisations who began to provide renewable energy about a decade ago.
“Over the last decade, it seems demand for solar home systems are growing,” he said.
At the first Asian Solar Energy Forum held in Manila earlier this week, Asian Development Bank (ADB) officials said Asia’s developing nations were in a perfect position to harvest power from the sun, and added that assistance from development institutions was crucial to growing the industry.
Margaret Ryan, part-owner of the Kingdom’s oldest solar firm, Khmer Solar, said she welcomed nonprofit assistance from development bodies, provided it was well-structured. That firm has already extended $300,000 in credit from its Battambang office for households to purchase solar panels.
Thursday, July 8, 2010
Mekong Condominium
Phnom Penh Post. THURSDAY, 08 JULY 2010 15:01 SOEUN SAY
MANAGERS at Phnom Penh’s US$15 million Mekong Condominium hope that sales to foreigners boost occupancy when the new development is inaugurated in September, project manager Chhim Chan Virak said yesterday.
Legislation passed at the beginning of April allows foreigners to own property in Cambodian buildings above the ground floor. Developers of the 18-story, 146-unit Mekong Condominium predict that the recent changes will support the project’s bottom line.
“The new law on property ownership will boost foreign investment and real estate prices across the country,” Chhim Chan Virak said.
Located in the capital’s Russey Keo District about a kilometre from the Cambodia-Japan Friendship Bridge, units will be sold for between $800 and $1,000 per square metre, he said.
However, the firm plans to pursue rentals as a result of declining real estate prices following the recent recession.
“Until the economic situation gets better, we cannot focus only on sales, but we are also looking for rentals,” he said.
The firm plans to eventually construct a second condominium of the same size and price range along National Road 6 and the Mekong about a kilometre from the first.
Cambodia Property Limited valuation manager Seng Sopheak said that the Kingdom’s property market is improving this year compared to last, but is still below the 2007 to mid-2008 real estate boom.
“According to our research, buying and selling activities have increased step by step since the beginning of this year,” he said.
Seng Sopheak remains optimistic about the future of Cambodia’s real estate market. “Investment in Cambodia’s banking sector is growing, and they’re offering more loans to buy property. I hope things will have recovered by 2011,” he said.
MANAGERS at Phnom Penh’s US$15 million Mekong Condominium hope that sales to foreigners boost occupancy when the new development is inaugurated in September, project manager Chhim Chan Virak said yesterday.
Legislation passed at the beginning of April allows foreigners to own property in Cambodian buildings above the ground floor. Developers of the 18-story, 146-unit Mekong Condominium predict that the recent changes will support the project’s bottom line.
“The new law on property ownership will boost foreign investment and real estate prices across the country,” Chhim Chan Virak said.
Located in the capital’s Russey Keo District about a kilometre from the Cambodia-Japan Friendship Bridge, units will be sold for between $800 and $1,000 per square metre, he said.
However, the firm plans to pursue rentals as a result of declining real estate prices following the recent recession.
“Until the economic situation gets better, we cannot focus only on sales, but we are also looking for rentals,” he said.
The firm plans to eventually construct a second condominium of the same size and price range along National Road 6 and the Mekong about a kilometre from the first.
Cambodia Property Limited valuation manager Seng Sopheak said that the Kingdom’s property market is improving this year compared to last, but is still below the 2007 to mid-2008 real estate boom.
“According to our research, buying and selling activities have increased step by step since the beginning of this year,” he said.
Seng Sopheak remains optimistic about the future of Cambodia’s real estate market. “Investment in Cambodia’s banking sector is growing, and they’re offering more loans to buy property. I hope things will have recovered by 2011,” he said.
Monday, July 5, 2010
Land concessions: $1/hectare
Phnom Penh Post. MONDAY, 05 JULY 2010 15:02 MAY TITTHARA
TWO companies linked to Cambodian People’s Party Senator Ly Yong Phat are among five that were granted economic land concessions requiring them to pay only US$1 per hectare in annual rent in exchange for development rights, according to newly discovered agreements with the government.
The contracts with the Ministry of Agriculture, Forestry and Fisheries state that the five concessionaires must begin paying the “rental fees” five years after the concessions were awarded.
One of the firms linked to Ly Yong Phat, the Koh Kong Sugar Industry Company, is at the centre of a land dispute that erupted in violence in 2006 when security guards fired guns to repel villagers protesting against the destruction of orchards.
The other, the Kampong Speu Sugar Company, is owned by Ly Yong Phat’s wife, Kim Heang. It borders a 8,343-hectare concession granted to another of his holdings, the Phnom Penh Sugar Company, which is embroiled in a heated dispute with more than 1,000 families.
That dispute has led to three arrests this year. According to a recent field report from the rights group Adhoc, more than 1,000 families are expected to face food shortages this year after being denied access to their farmland.
Ouch Leng, a land programme officer for Adhoc, which first obtained the agreements, said he believed it was a common practice for concessionaires to be charged what amounts to a nominal fee in exchange for development rights.
But he said the companies should be forced to pay higher rates, considering the costs incurred by villagers forced from their land.
“The government is not helping villagers get a better standard of living, but causing them to become poorer and poorer,” Ouch Leng said.
“No other country in the world is renting land at such a cheap price as Cambodia.”
Ly Yong Phat was unavailable for comment yesterday.
Chhean Kimsuon, a representative of the Phnom Penh Sugar Company, said she could not discuss the financial arrangements between the firm and the government.
However, she said the land concession would ultimately be beneficial for locals, providing jobs to 300 people.
“We will provide a lot of jobs for villagers when our company is operating,” she said.
Officials at the Ministry of Agriculture, Forestry and Fisheries could not be reached for comment yesterday.
TWO companies linked to Cambodian People’s Party Senator Ly Yong Phat are among five that were granted economic land concessions requiring them to pay only US$1 per hectare in annual rent in exchange for development rights, according to newly discovered agreements with the government.
The contracts with the Ministry of Agriculture, Forestry and Fisheries state that the five concessionaires must begin paying the “rental fees” five years after the concessions were awarded.
One of the firms linked to Ly Yong Phat, the Koh Kong Sugar Industry Company, is at the centre of a land dispute that erupted in violence in 2006 when security guards fired guns to repel villagers protesting against the destruction of orchards.
The other, the Kampong Speu Sugar Company, is owned by Ly Yong Phat’s wife, Kim Heang. It borders a 8,343-hectare concession granted to another of his holdings, the Phnom Penh Sugar Company, which is embroiled in a heated dispute with more than 1,000 families.
That dispute has led to three arrests this year. According to a recent field report from the rights group Adhoc, more than 1,000 families are expected to face food shortages this year after being denied access to their farmland.
Ouch Leng, a land programme officer for Adhoc, which first obtained the agreements, said he believed it was a common practice for concessionaires to be charged what amounts to a nominal fee in exchange for development rights.
But he said the companies should be forced to pay higher rates, considering the costs incurred by villagers forced from their land.
“The government is not helping villagers get a better standard of living, but causing them to become poorer and poorer,” Ouch Leng said.
“No other country in the world is renting land at such a cheap price as Cambodia.”
Ly Yong Phat was unavailable for comment yesterday.
Chhean Kimsuon, a representative of the Phnom Penh Sugar Company, said she could not discuss the financial arrangements between the firm and the government.
However, she said the land concession would ultimately be beneficial for locals, providing jobs to 300 people.
“We will provide a lot of jobs for villagers when our company is operating,” she said.
Officials at the Ministry of Agriculture, Forestry and Fisheries could not be reached for comment yesterday.
Saturday, July 3, 2010
Applications for building licences up
Phnom Penh Post. FRIDAY, 02 JULY 2010 15:00 SOEUN SAY
THE number of construction companies seeking building licences increased 14.5 percent in the first five months of 2010, according to government statistics obtained Thursday. Seventy construction companies received them, up from 61 for the same time last year. The Ministry of Land Management “has had a lot of companies asking for construction licences because [investors] believe the construction sector will recover soon,” director of the construction department Lao Tip Seiha said.
THE number of construction companies seeking building licences increased 14.5 percent in the first five months of 2010, according to government statistics obtained Thursday. Seventy construction companies received them, up from 61 for the same time last year. The Ministry of Land Management “has had a lot of companies asking for construction licences because [investors] believe the construction sector will recover soon,” director of the construction department Lao Tip Seiha said.
Thursday, July 1, 2010
OCIC builds shops on diamond island
Phnom PenhPost THURSDAY, 01 JULY 2010 15:00 SOEUN SAY
OVERSEAS Cambodia Investment Cooperation (OCIC) is set to complete building more than 100 shops in the Diamond Island project in the next month, according to Prak Chan Long, general manager of Diamond Island Convention Exhibition Centre. He said he did not know how much it cost to build. “We’ve built the shops for rent, not for sale, and will charge about US$500 per month. We’ve rented out most of the shops already,” he said. The Diamond Island Convention Exhibition Centre is part of a larger $200 million development being built by OCIC, which has the same owners as Canadia Bank. It is slated for completion in 2016, and is expected to occupy 75 hectares, according to government approval in 2006. The island, called Koh Pich in Khmer, is in Phnom Penh.
OVERSEAS Cambodia Investment Cooperation (OCIC) is set to complete building more than 100 shops in the Diamond Island project in the next month, according to Prak Chan Long, general manager of Diamond Island Convention Exhibition Centre. He said he did not know how much it cost to build. “We’ve built the shops for rent, not for sale, and will charge about US$500 per month. We’ve rented out most of the shops already,” he said. The Diamond Island Convention Exhibition Centre is part of a larger $200 million development being built by OCIC, which has the same owners as Canadia Bank. It is slated for completion in 2016, and is expected to occupy 75 hectares, according to government approval in 2006. The island, called Koh Pich in Khmer, is in Phnom Penh.
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