Cambodia breaks ground on controversial $1.7 billion canal funded by China

Cambodia broke ground Monday on a controversial, China-funded canal to link the capital Phnom Penh to the sea, despite environmental concerns and the risk of straining ties with neighboring Vietnam.

The $1.7 billion, 180-kilometer (111 miles) Funan Techo canal is planned to connect the country’s capital with Kep province on Cambodia’s south coast, giving it access to the Gulf of Thailand.

Cambodia hopes the 100-meter (328 feet)-wide, 5.4-meter (17.7 feet)-deep canal will lower the cost of shipping goods to the country’s sole deep-sea port, Sihanoukville, and reduce reliance on Vietnamese ports.

The project highlights the outsized role that China plays in Cambodian politics and economy. Meanwhile, concerns remain about the potential environmental impacts of the canal, especially on the flow of the Mekong River, which feeds millions of people across six countries through its fish and the agriculture that it sustains.

The project has Vietnam worried, both about the effect on its Mekong Delta rice-growing and about Cambodia moving out of its orbit, said Nguyen Khac Giang, an analyst at Singapore’s ISEAS-Yusof Ishak Institute.