Cambodia's Global CAM Project Development and Korea's Green Eco Energy have signed a memorandum of understanding (MoU) to develop the Phnom Penh - Sihanoukville road PPP project in Cambodia.
According to sources, the deal is worth up to US$536 million.
The project involves the construction of a 275-kilometer-long, 20-meter-wide expressway, which will run along the National Road 3. It will be developed on a build, operation and transfer (BOT) basis and the concession period will be 35 years.
The new expressway, which will be the first expressway in Cambodia, is expected to save cost, reduce traffic congestion and encourage more use of Sihanoukville Port as well as draw more tourists to the coast.
Phnom Penh, Cambodia's busy capital, sits at the junction of the Mekong and Tonlé Sap rivers and Sihanoukville is a coastal city located at the top of an elevated peninsula in the country's south-west at the Gulf of Thailand.
According to a master plan developed by the Ministry of Public Works and Transportation, the country will need 850 kilometers of expressways by 2020. This plan would involve a total investment of approximately US$9 billion.