Companies announce $1b project in Kandal

(Posted by CAAI News Media)

Friday, 23 October 2009 15:01 Nguon Sovan

FRENCH and South Korean companies announced a deal late Wednesday on what would be Kandal province’s largest development project, a proposed US$1 billion satellite city.

At a signing ceremony in Phnom Penh, South Korea’s Global Digital Media Group (GMG) and France-based Green Gold Holdings Ltd (GGH) approved a memorandum of understanding to develop the 2,890-hectare site in Takhmao district, a project that will take until 2023 to finish, according to company documents.

“The land for the investment plan is already owned by GMG,” said Yoo Ri-na, CEO of GMG, at the launch.

The project includes residential areas, a business district and education and research centres, according to documents.

Michael Cheong, CEO of France-based Green Gold Holdings Ltd, told reporters after the signing ceremony that his company will invest the necessary $1 billion in an arrangement that will see its counterpart manage the development.

“We decided to invest … because there is political stability in Cambodia,” he said after the signing event, adding the two firms would soon submit a proposal to the Council for the Development of Cambodia.

Despite the scale of the project, the numerous government officials present at the signing ceremony declined to comment on the proposed investment, saying it had not yet been approved by CDC.

“This is the biggest project in the province. At this stage, I cannot give any comment to avoid a rise in land prices in the area. It is the companies’ confidential business,” said Kandal province Governor Chhun Sirun.