Cambodia Inks Deal With IFC To Develop New Sihanoukvlle Logistics Hub
By
B2B Cambodia
on
The Cambodian Ministry of Public Works and Transport has established a public-private partnership (PPP) for a logistics complex in Sihanoukville province and signed a financial advisory services agreement with the International Finance Corporation (which is part of the World Bank Group) to find a developer for the new $200 million logistics complex.
The deal means that the International Finance Corporation (IFC) will assist the Cambodian government in "conducting an international competitive tender to select a qualified private developer in accordance with the country's public-private partnership (PPP) law". IFC will act as the exclusive lead advisor.
Asad Yaqub, IFC resident representative for Cambodia, said "Large-scale investments in infrastructure are vital to support Cambodia's export-oriented manufacturing industries and boost the country's supply chain and logistics connectivity with the region."
The project will be developed in phases, with an overall capital cost estimate of about $USD $200 million said the official statement. It added," A modern and transport-integrated logistics complex supporting the Sihanoukville Autonomous Port will help accelerate the movement of exports and imports and reduce port congestion".
Photo: Senior Minister Sun Chanthol, Ministry of Public Works and Transport (left) and Asad Yaqub, IFC Resident Representative signed the Financial Advisory Service Agreement for the Sihanoukville Logistics Complex in Phnom Penh, Cambodia, April 19, 2023
Sihanoukville Autonomous Port is Cambodia's sole international and commercial deep-sea port, handling two-thirds of the total container throughput in the country. The project will aim to improve efficiency and lower logistics costs in Cambodia. The coastal port is in a strategic location and well connected to the capital by the new Phnom Penh-Sihanoukville Expressway, railways, and an airport.
Minister of Public Works and Transport Sun Chanthol said the Sihanoukville Logistics Complex project is one of two priority logistics hubs to be developed in Cambodia as part of the plans to "position Cambodia as a regional logistics transfer hub in Southeast Asia," he said.
Under the long-term PPP agreement:
Photo: Senior Minister Sun Chanthol, Ministry of Public Works and Transport (left) and Asad Yaqub, IFC Resident Representative signed the Financial Advisory Service Agreement for the Sihanoukville Logistics Complex in Phnom Penh, Cambodia, April 19, 2023
Sihanoukville Autonomous Port is Cambodia's sole international and commercial deep-sea port, handling two-thirds of the total container throughput in the country. The project will aim to improve efficiency and lower logistics costs in Cambodia. The coastal port is in a strategic location and well connected to the capital by the new Phnom Penh-Sihanoukville Expressway, railways, and an airport.
Minister of Public Works and Transport Sun Chanthol said the Sihanoukville Logistics Complex project is one of two priority logistics hubs to be developed in Cambodia as part of the plans to "position Cambodia as a regional logistics transfer hub in Southeast Asia," he said.
Under the long-term PPP agreement:
- The appointed developer will finance, develop, and operate the infrastructure, facilities, and systems within the complex.
- The tender award to the winning bidder is likely to be granted by late 2024, with the hub to be constructed over three years.
- 2023 Agility Emerging Markets Logistics Index Confirms More Headwinds.
- AEON Logistics Hub Set For Sihanoukville.
- In 2021 YCH Group (Singapore) and Cambodia’s Ministry of Public Works and Transport announced a framework agreement to develop the Phnom Penh Logistics Complex (PPLC).