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The Chinese government has provided $259 million as a concessional loan to Cambodia for the construction of the third ring road for the Phnom Penh.

The Finance Ministry stated that they signed the necessary agreement with China last week.

The new ring road will be four-lane, 47.6 kilometres long, 25 metres wide, and built by the Shanghai Construction Group. The project is an achievement of the Comprehensive Strategy Partnership of both countries.

The ministry said that it will connect with National Roads 1, 2, 3, 5, 21 and Phnom Penh Port. It will play an important role in reducing traffic congestion and be a boon for industrial growth.

The Ring Road 2 is presently under construction.

Cambodia Airways, the latest passenger airline to enter the Kingdom, launched its first domestic flight on Tuesday.

Flight KR801, carrying 145 passengers, left the Phnom Penh International Airport at 9:50am and landed in Siem Reap at 10:35am in an Airbus A319.

Cambodia Airways marketing and branding manager Sok Ravy said domestic routes connecting Phnom Penh to Siem Reap and Phnom Penh to Sihanoukville will operate daily, while the Siem Reap-Macau, Phnom Penh-Macau and Sihanoukville-Macau routes will operate four times a week.

The first international flight is scheduled for takeoff on July 21.

Ravy said the company plans to add a Siem Reap-Taiwan route at the end of the month.

Acknowledging that there has been a spike in competition in the airline sector, she said there was still plenty of room to grow in the Kingdom, as the tourism industry was also booming.

“We believe the tourism industry will keep steady growth, which will drive demand for good quality airline services. We have quality aircraft, professional captains, well-trained cabin crews and standard services.”

“So we believe our company will operate successfully,” Ravy said.

A fleet of two

Cambodia Airways, which is fully owned by the Prince International Airlines Company, is registered in Phnom Penh and received initial approval to operate in August last year. It secured an air operator’s certificate (AOC) on July 6.

With an initial investment of $200 million, the new airline currently operates two Airbus A319 aircraft, with another three A320 aircraft to be commissioned at the end of the year.

Ravy said the company will grow its fleet to 20 aircraft by 2020. The airline expects to operate scheduled flights to Japan, South Korea, Asean countries, as well as routes to Europe and elsewhere in Asia.

The new airline will tighten competition in Cambodia’s increasingly crowded airspace, where 44 commercial airlines operate scheduled flights.

With Cambodian Airways now operating, it puts more pressure on local carriers as the number of domestically registered airlines stand at six.

Cambodia Airports general manager Chloe Lapeyre said the Kingdom is a very attractive market for the sector at the moment because it still hasn’t realised its full tourism potential. Cambodia Airports operates all the airports in the Kingdom.

Lapeyre said the capital’s airport can accommodate between 70 and 90 flights daily – an increase of about 30 percent per year.

“A lot of new international routes have been opening since the beginning of the year. The trend is for faster growth on the international side. That said, there is still space for domestic development too,” she said.

The Ministry of Commerce is seeking Japan’s help to improve products manufactured by small and medium enterprises in the Kingdom and bring them up to Japanese standards of quality.

Cambodian Commerce Minister Pan Sorasak yesterday met with Miyao Masahiro, president of the Japan External Trade Organisation (Jetro), and requested that they strengthen their cooperation with Cambodia to up the quality of locally made products that could be used to feed local demand or be exported to Japan.

“Cambodia needs Japanese investors to cooperate with local SMEs to develop high quality products with Japanese standards that can be sold at Aeon mall and also abroad,” the minister said.

Mr Sorasak added that his ministry continues to work to facilitate the operations of Japanese investors in the country.

In response to the minister’s request, Mr Masahiro pledged to promote business opportunities in Cambodia back home and to urge Japanese companies to invest in Cambodian SMEs.

Cambodian exports to Japan soared during the first three months of 2018, reaching $390 million, a 15 percent hike compared to last year. Imports from Japan declined by 1.7 percent to $87.3 million, widening the trade deficit with Japan, according to figures from Jetro.

With over 130 registered projects in banking, manufacturing, agriculture, service and infrastructure, among other sectors, Japanese investment in the kingdom was valued at $1.6 billion in 2017, according to the Council for the Development of Cambodia.

City Hall yesterday announced that the first 20 buses donated by the Japanese government through the Japanese International Cooperation Agency have been received, while the remaining 60 will arrive in the upcoming months.

City Hall spokesman Met Meas Pheakdey said that 80 buses are to be donated to Phnom Penh to serve as public transportation.

He noted that 20 buses arrived in the capital last week and will soon serve as part of an expansion of bus routes throughout the city.

“We plan to expand the number of city bus lines to meet the demand for public transportation services,” Mr Meas Pheakdey said. “We are also considering adding the new buses to our existing fleet because the number of commuters have increased.”

The donation is part of a commitment by the Japanese government to donate a total of 140 buses over the next two years, estimated to cost about $8 million.

Phnom Penh launched its first public transportation service in 2014. As of this year, there are eight operational city bus lines with 157 city buses, serving up to 20,000 passengers per day.

According to City Hall, the buses will accommodate commuters looking to avoid traffic congestion around busy parts of the city.

“Support for city buses has increased because people are now more aware about using public transportation to avoid traffic jams,” Mr Meas Pheakdey said. “Next, we’re going to expand the bus routes from the capital into surrounding provinces, but for now our focus is on Phnom Penh.”

Aeon, a Japanese retail conglomerate, yesterday officially opened its second mall in Phnom Penh, in a bid to capitalise on the Kingdom’s growing middle and upper classes, as well as the increasing number of East Asian and Western residents.

The new mall, located in Sen Sok district, follows the hugely successful first Aeon mall, which opened in 2014 in Sothearos Boulevard and changed the face of retail in the country.

Aeon Mall 2 is in Pong Peay City, an area north of downtown Phnom Penh currently under comprehensive development by the LYP Group, who is focusing on housing projects, wedding venues and commercial facilities.

Tetsuyuki Nakagawa, managing director of Aeon Mall Cambodia Co., Ltd., said a raft of Cambodian developers are raising high-end housing projects in the area, which is helping drive up the value of land.

“Moreover, the mall is close to downtown Phnom Penh, and transportation between the mall and existing residential quarters is convenient and fast,” Mr Nakagawa said.

He explained that the new mall has several strong selling points: “It has a rich, green environment and it’s the largest recreational facility in Cambodia.

“On top of that, it offers access to various public services, as well as a financial zone with the latest technology from Japan,” he said.

Aeon reached an agreement with Korea’s Hyundai Engineering in 2016 for the construction of the $120-million Aeon Mall 2. The result is a four-story mall that covers an area of 151,000 square metres.

Ann Sothida, director of CBRE Cambodia, said the Kingdom is likely to see several more international malls in the near future, as there are still few of them in the country and disposable incomes are on the rise.

“Investors interested in this kind of projects must focus on design and on developing an effective sales strategy to be successful,” she added.

Following the completion in July of the section stretching from Siem Reap to Kampong Cham province, National Road 6 was officially inaugurated yesterday in a ceremony presided over by Prime Minister Hun Sen.

The thoroughfare is now officially in service, after a renovation that has taken 50 months and cost more than $255 million, which was mostly financed with a concessional loan from the Chinese government.

Work on the last section of the road – which spans 200 kilometres and crosses the provinces of Siem Reap, Kampong Thom and Kampong Cham – finished nearly a year ago.

“Thanks to our Chinese friends we have been able to build our internal road network which will improve people’s lives,” Prime Minister Hun Sen said.

Sun Chanthol, the Minister of Transport, highlighted the importance of having completed such an ambitious road renovation project.

“This road will facilitate travel and cargo transportation, reducing logistics costs and helping to further integrate Cambodia into the Asean community,” the minister said.

“Simultaneously, this road will play a key role in increasing the number of tourists in the country, particularly in Kampong Thom, Siem Reap and neighbouring provinces like Preah Vihear, which are rich in historical sites and nature.

“In addition to this, people living near the road will gain access to new opportunities for employment and training as tourism investment in the area booms,” he added.

During the launching ceremony yesterday, which was also attended by Chinese Ambassador to Cambodia Xiong Bo, Mr Hun Sen said a new study should be conducted to assess the possibility of constructing a bridge across the Tonle Sap Lake to connect the provinces of Kampong Thom and Kampong Chhnang.

The first feasibility study on the project yielded negative results, pointing to impacts on fish migration patterns and the daily lives of fishermen in the area, the premier said.

He said the project could be reworked taking the Hong Kong–Shenzhen Western Corridor as inspiration.

The Hong Kong–Shenzhen Western Corridor, colloquially known as the Shenzhen Bay Bridge, is a 5.5-kilometre dual three-lane carriageway that connects Hong Kong to mainland China.

The cost of building a road and a bridge to connect Kampong Chhnang and Kampong Thom province across the Tonle Sap Lake is estimated at more than $100 million.

Pi Pay will work with the government to facilitate payment of services provided by the Ministry of Transportation by enabling access to cashless solutions for all citizens.

The memorandum of understanding, signed this week by Sun Chanthol, the Minister of Transportation and Public Works, and Thomas Pokorny, CEO of Pi Pay, will allow citizens to use cashless payment technology to pay for a variety of transport-related services, including registering a vehicle, passing technical vehicle inspections, taking a driving test, applying for a commercial license and purchasing a ticket for Phnom Penh’s new water taxi service.

Pi Pay, which launched in June last year, has become one of the most recognisable local brands with its distinctive pink logo and a merchant network encompassing thousands of restaurants, coffee shops, stores and other establishments.

Minister Sun Chanthol said the government is always looking for partnerships with industry-leading companies to boost the country’s economic growth. He said similar arrangements have been worked out with money transfer companies like Wing, Ly Hour Veluy and Smart Luy.

“Today’s MoU will make paying for transport services more convenient, fast, and efficient for all people,” he said.

“This is just the first step and we look forward to furthering cooperation with Pi Pay.

“We want Pi Pay to expand regionally and show the world that Cambodia is able to develop applications for international users,” the minister added.

Pi Pay’s Mr Pokorny, meanwhile, stressed that the agreement represents a big step forward towards boosting the use of cashless payment technology in the Kingdom.

“A partnership like this with a forward-looking and dynamic ministry will encourage even more Cambodians to embrace the convenience and security of cashless in all aspects of their lives, improving financial inclusion and driving financial literacy in the population.”

Regarding the cost of the service that would be provided to the ministry, Mr Pokorny said the details have not been worked out yet, but added he is aiming to supply the service at minimum cost.

“We need to work with the ministry to figure out the cost, but we hope we will charge as low as possible or maybe even provide the service for free. Our vision is not to charge for public services because this will increase the price for ordinary citizens,” he said.

According to Mr Pokorny, in nearly a year since the company was launched, the Pi Pay app has been downloaded by more than 250,000 people. The company now boasts 2,000 merchant partners, mainly in Phnom Penh and Siem Reap. It will soon expand to Sihanoukville and Battambang.

He said the company aims to reach 400,000 users by the end of the year.

“Many might recognise Pi Pay mainly from the food and beverage outlets or the shopping malls where we have built an amazing network of merchant partners in just over one year,” he said.

1月1日（月） インターナショナルニューイヤー
1月7日(日) 虐殺政権(ポルポト政権)からの解放日
1月8日（月）振替休日
1月31日(水) 万仏祭

3月8日(木) 国際女性の日

4月14日(土)～16日(月) カンボジア正月
4月17日（火）振替休日
4月29日（日） 仏誕節・釈迦誕生日
4月30日（月）振替休日

5月1日(火) 国際労働者の日
5月3日(木) 王室耕起祭
5月13日(日)～15日(火) シハモニ国王誕生日祭
5月16日（水）振替休日
5月20日(日)追悼の日
5月21日（月）振替休日

6月1日(金) 国際子どもの日
6月18日(月) モニク前王妃誕生日

9月24日(月) 憲法記念日

10月8日(月)～10日(水) プチュン・バン(お盆)
10月15日(月) シハヌーク前国王追悼記念日
10月23日(火) パリ平和条約記念日
10月29日(月) シハモニ国王即位記念日

11月9日(金) 独立記念日
11月21日(水)～23日(金) 水祭り

12月10日(月) 国際人権の日

※緑字：振替休日

The United Nations Development Programme (UNDP) and ride-hailing app Grab are partnering up to tackle traffic woes in Phnom Penh.

Under a new agreement inked yesterday, Grab will gather data collected by its drivers and will make it available to the government and UNDP, who will use the information to improve traffic efficiency, enhance safety and reduce air pollution.

“Grab will gather information on the city’s traffic and they will send us the data so that the government, in cooperation with UNDP, can work to ameliorate traffic problems,” Minister of Transport Sun Chanthol said during the signing ceremony yesterday.

The project – which has been dubbed ‘Sustainable Urban Mobility for All Initiatives,’ or Sumai – will have a life expectancy of three years and will cost around $500,000 to implement, which will be jointly financed by UNDP and Grab.

Information gathered under Sumai, which will include traffic and air quality data, will be used to shape policy as well as investment decisions on public infrastructure and urban transportation solutions.

“The project aims to improve the efficiency of existing transport systems, reduce greenhouse gas emissions through the promotion of clean vehicles, and stimulate innovations in smart transport solutions to accelerate progress on safety and mobility for all,” the official press release said.

Russell Cohen, Grab’s head of operations in Southeast Asia, said this is the first public-private partnership tackling transportation and traffic problems in Cambodia.

“Our continued partnership with UNDP will help us further our ambition to make Southeast Asian cities cleaner and more livable,” he said.

“Apart from co-financing the project, Grab’s contribution will include sharing data, technology expertise, and manpower, as well as promoting the use of green vehicles among our drivers, partners and passengers.”

Nick Beresford, UNDP’s country director, said rapid urbanisation has enhanced standards of living across the world, but it has also brought unprecedented levels of traffic congestion that make people waste an increasing number of hours waiting in traffic-choked streets.

“This initiative goes well beyond corporate social responsibility. It offers a new model of private and public sectors engaging ‘to do well while doing good,’” he said, adding that it offers a platform for better-informed policies that will increase investment in sustainable urban development.

Minister Chanthol said that if the project is implemented successfully in the capital, it will be extended to other major cities in the country, like Siem Reap or Sihanoukville.

The government yesterday reassured the public that the automated gateway transit (AGT) system, an electric-powered mass transit system that will link Phnom Penh’s city centre with its airport, will be built as planned, after rumors circulated recently that the project may had been cancelled.

Speaking to reporters yesterday, Transport Minister Sun Chanthol said the AGT project is moving forward as planned, and that its feasibility study, which is being conducted in cooperation with the Japan International Cooperation Agency (JICA), will be ready in the next two years.

“The study will be finished this year or the next. JICA is being very thorough, and wants to have every detail planned before beginning construction,” the minister said.

The AGT, described as an environmentally friendly mass transit system, can travel at speeds of 60 kilometers per hour without emitting hazardous smoke. It requires less space and can easily be maneuvered in the city’s minor thoroughfares, the minister explained.

“It will modernise public transport in the city and help reduce traffic congestion.”

He said that claims that the Japanese government had withdrawn its support for the project were fabricated, and that the East Asian giant is still committed to financing the project with $800 million, thou it has not yet confirmed whether the money will be disbursed as a loan or a grant.

“We still need to discuss the issue of financing with the Japanese government, as we don’t know if they are thinking of giving us a loan or a grant,” he said.

“But, we are sure that Japan will help us.”

The minister said another meeting will be arranged this month between JICA and representatives of the Cambodian government to continue discussion on the feasibility study.

The minister said the AGT will run for 18 kilometres, starting in Central Market and ending at Phnom Penh International Airport.

“We are now studying the exact route that the AGT will follow. One thing we are sure of is that it will run underground for four kilometres as it approaches Phnom Penh Airport,” he said, adding that they are trying to find a route that does not traverse populated areas to minimise the social impact of the project.

“We want to make sure that compensation costs are kept at a minimum,” he added.

The minister said a similar project dubbed ‘sky train’ has been put on the table by an unnamed Chinese company.

“The Chinese company is going to conduct studies on a monorail system which they want to build under a build-operate-transfer contract.

“We will try to obtain government approval for this project, but first we need to make sure that it does not interfere or overlap with the AGT,” Mr Chanthol said.