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Overview

CDB provides loan for Koh Rong Eco-Tourism Complex Construction Project

Commitments (Constant USD, 2023)$188,511,367
Commitment Year•2022Country of Activity•CambodiaDirect Recipient Country of Incorporation•CambodiaSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2022

Geospatial footprint

Map overview

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The project would involve the construction of a five‑star hotel, international convention center, resorts, duty‑free shops, supermarkets as well as 600 units of a villa‑style resort on Koh Rong Island in Preah Sihanouk Province. The project was also expected to involve the construction of 70 km of roads, an airport, solar power stations, an electricity grid, and a clean water system on the island. More detailed locational information can be found at https://www.openstreetmap.org/relation/11598432

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Royal Group Koh Rong Development Co. Ltd.

Implementing agencies

Private Sector

  • Cambodian Lan Cang Jiang Engineering Co. Ltd.

State-owned companies

  • Sinohydro Corporation Limited

Loan desecription

CDB provides loan for Koh Rong Eco-Tourism Complex Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In February 2008, Royal Group Co., Ltd. — a company owned by Cambodia's richest crony-capitalist, Kith Meng — and the Council for the Development of Cambodia (CDC) signed a 99-year lease agreement. The lease of around one-fifth of the island was granted to Royal Group Co., Ltd. to develop Koh Rong Island into a commercial development area and an ecotourism resort. The agreement also stipulated that Royal Group Co., Ltd. would also build airport infrastructure to aid the island’s economic growth. Then, in December 2019, Royal Group Co., Ltd. and Royal Galaxy Group announced plans to created a joint venture — known as Royal Group Koh Rong Development Co. Ltd. — to invest $285 million in the construction of a resort project on Koh Rong Island in Preah Sihanouk Province. China Development Bank (CDB) subsequently issued a loan to Royal Group Koh Rong Development Co. Ltd. for the Koh Rong Eco-Tourism Complex Construction Project. The project involves the construction of a five‑star hotel, international convention center, resorts, duty‑free shops, supermarkets as well as 600 units of a villa‑style resort. The project is also expected to involve the construction of 70 km of roads, an airport, solar power stations, an electricity grid, and a clean water system on the island. However, the Koh Rong Eco-Tourism Complex Construction Project has faced significant implementation delays. On July 14, 2020, Royal Group Koh Rong Development Co. Ltd. and Sinohydro Construction Co. Ltd. signed a $35 million construction contract to support the development of 70 km of concrete roads on Koh Rong Island. Royal Group Koh Rong Development Co. Ltd. and Cambodian Lan Cang Jiang Engineering Co. Ltd. (a Chinese-owned company) signed an EPC contract to support the construction of an airport (with the capacity to accommodate around 138,000 passengers annually) and a resort on Koh Rong Island in January 2023. Earthworks for the first phase of construction of the Koh Rong International Eco-Tourism Airport began in January 2024.

Staff comments

1. The precise value of the CDB loan is unknown. For the time being, AidData assumes that it is equivalent to 70% of the total project (investment) cost ($199.5 million). This issue warrants further investigation. 2. Evidence of CDB financing can be accessed via https://www.dropbox.com/scl/fi/8yoafp7pmr5ixmh6ybfx9/52b88-jiajia-xing-cv.sxh.13dec15docx.pdf?rlkey=4as2u04rp3mma11m19056v2nw&dl=0. 3. The Chinese project title is 皇家银河集团高龙岛皇家银滩游乐度假区项目 or 高龙岛皇家银滩游乐度假区项目.