China poaches airport contract

Op-Ed: Phnom Penh Post

China poaches airport contract

Wed, 28 December 2016

The government has commissioned a Chinese consortium to build a new international airport for Siem Reap and formed a committee to determine how to compensate the French company that operates the city’s existing airport for prematurely ending its concession licence, according to documents obtained yesterday.

Under the deal, Chinese state-run Yunnan Investment Holdings Ltd (YIHL) will build a new $880 million airport about 50 kilometres outside Siem Reap’s provincial capital in Sonikum district.

The agreement, signed by Cambodian Deputy Prime Minister Sok An and YIHL chairman Sun Yun during Chinese President Xi Jinping’s visit to the Kingdom in October, grants a joint investment consortium formed by YIHL, the Yunnan Construction Investment Group and the Yunnan Airport Group an exclusive 55-year build, operate, transfer (BOT) concession on the new airport.

Construction of the greenfield airport on 700 hectares of land provided by the government is expected to take three years, according to Chinese media sources. The plan is to build a 4E class airport, with the possibility of expanding to 4F compliance, which means the airport could receive larger long-haul aircraft.

Once operational, YIHL’s Siem Reap Angkor International Airport would replace the existing airport at Siem Reap operated by Cambodia Airports, a company majority owned by France’s Vinci Group.

Cambodia Airports currently holds a concession to operate the international airports serving Phnom Penh, Siem Reap and Sihanoukville until 2040. The company recently sunk $100 million into expanding the terminals at the Phnom Penh and Siem Reap airports, which is expected to increase each airport’s capacity to handle up to 5 million passengers annually.

According to a government decree signed by Prime Minister Hun Sen on November 1 and obtained by The Post yesterday, the premier has appointed an eight-person committee to negotiate a sooner end-date for Cambodia Airport’s franchise on Siem Reap’s airport and to discuss suitable compensation for the company.

“The committee must negotiate with Cambodia Airports in order to terminate the contract before the concession agreement ends and cease operations and development of the current Siem Reap airport,” it read.

“The committee will arrange the negotiations with Cambodia Airports in order to handle the compensation for the termination of the contract according to Article 7 of the concession agreement.”

Yim Nola, the senior minister of the Cambodian government who heads the newly formed committee, claimed both the government and Cambodia Airports had agreed to include Article 7 in the initial concession agreement when it was signed. He said the article gives the government the right to relocate the airport provided Cambodia Airports receives compensation.

He said Cambodia Airports had already been informed of the decision to amend the contract, though a date for the negotiations had not yet been set.

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Will Cambodia Become the Gateway to ASEAN’s 600 Million Consumers?

Will Cambodia Become the Gateway to ASEAN’s 600 Million Consumers?

May 29, 2015 Asia-Pacific Cambodia
Op-Ed: Knowledge@Whorton

Courtesy: Knowledge@Whorton

Selling Cambodia, a country known for its killing fields, landmines and chronic poverty, is a tough job. But Chanthol Sun, minister for commerce, says it’s very easy when “you talk from the heart.” The 59-year-old, U.S.-educated, former General Electric executive points out that Cambodia has a lot to offer to international investors: political and macroeconomic stability, a pro-business government, competitive investment incentives and a great location. Referring to the people of Cambodia as his “shareholders,” Sun says, “They have suffered long enough. It’s time for Cambodia to grow … it’s time to for us to move forward.”

Born in 1956, in Koh Thom district in the Kandal province, Sun lost his mother and brother to the Khmer Rouge. The rest of his family escaped to Thailand. In 1973, Sun went to the U.S. with $50 in his pocket. He returned to Cambodia in 1994 and helped set up the Council for the Development of Cambodia. Elected to the Cambodian National Assembly in 2003, he was the minister for public works and transport from 2004 till 2008. In September 2013, he took on his current responsibilities as minister of commerce.

In a conversation with Knowledge@Wharton, Sun talks about his faith in the future of Cambodia and what motivates him as an individual.
As edited transcript of the conversation follows.

Knowledge@Wharton: Of all the ASEAN countries, why would an investor chose Cambodia instead of, say, Thailand, Indonesia or Vietnam?

Chanthol Sun: I can give the investor a few good reasons. At the top of the list is political stability. It’s important for investors to invest in a country that is politically stable. We had a little hiccup in the elections of 2013 — the opposition boycotted the national assembly for 10 months — but that’s all sorted now. Today, politically, Cambodia is very stable.

Two, macroeconomic stability. Cambodia’s GDP has been growing at an average of 7.7% for the last 20 years. The World Bank calls us one of the ‘Olympians of growth’; [we are] the sixth fastest growing economy in the world for the last 20 years. The inflation rate is less than 5%. The exchange rate has been stable for the last 20 years. Our debt-to-GDP ratio is below 30% and our budget deficit is very small. We expect to grow at an average of 7% to 7.5% for the next five to six years.

“Foreign investors and local investors are treated equally in Cambodia.”

Third, Cambodia’s government is a pro-business government. We consider the private sector as the engine of our economic growth. We have created what we call the “technical working groups,” co-chaired by the private sector and ministers in the Cambodian government. Technical working groups on infrastructure, banking, tourism, culture, so on and so forth. These technical groups work together on a regular basis to resolve any problems that the private sector might have. If they cannot resolve these problems, they can escalate them to what we call the “government private sector forum,” chaired by our prime minster. Once a year, he invites the private sector — 300 representatives, plus the diplomatic corps, the ADB [Asian Development Bank], World Bank, IMF [International Monetary Fund] — to this forum, and they can raise any problem with the prime minister. He can make a decision right there.

IMG_0220-Four, the competitive investment incentives. Our investment laws provide very generous incentives to investors. Our corporate income tax is only 20%. There is no exchange control in Cambodia. There’s no restriction on any sector because there is no alien business law. Every economic sector is open to a foreign investor. Tell me, which country allows foreigners to own 100% banking license, 100% ownership of the telecom sector, of agriculture — every sector? Foreign investors and local investors are treated equally in Cambodia Twitter .

Last, location, location, location. Cambodia sits at the heart of ASEAN. If you get on a plane, within one-and-a-half hours’ flying time you reach 600 million consumers. When I pitch to the investors, I say, don’t come to invest only in Cambodia with its 15 million consumers. Look at ASEAN as a whole, or at least the GMS [Greater Mekong Subregion], which consists of Cambodia, Vietnam, Laos, Myanmar, and Yunnan Province [China] — that’s 220 million consumers. Or, just look at three countries, Cambodia, Vietnam and Thailand — [Cambodia is] right in the middle. So in shipping, in transportation, we could be part of the regional supply chain. We have a dynamic population — the median age of Cambodians is 24.1 — so 35 years of productive labor.

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HE Sun Chanthol is Optimistic on Investment in Cambodia

សង្ឃឹមយ៉ាងមុតមាំថា ឯកឧត្តមស៑ុន ចាន់ថុលអាចយកជំនះ បានលេីជំងឺសង្គមនៃអំពេីពុករលួយក្នុងការបណ្តាក់ទុនរកសុីនៅកម្ពុជាបាន។ បានបញ្ហាធំៗជាច្រេីនដូចជា
១ ការចុះឈ្មោះបង្កេីតក្រុមហ៑ុនត្រូវចំណាយលុយខ្ពស់
២ ការបង់លុយក្រោមតុខ្ពស់ជាងបង់ពន្ធចូលរដ្ឋ
៣ មន្រ្តីនិងអាជ្ញាធរមូលដ្ឋានមកទារលុយក្រៅប្រព័ន្ធយ៉ាងរញេរញ៉ៃ
៤ មេរបស់ឯកឧត្តមគឺកំពូលពុករលួយគ្មានអ្វីអាចផ្លាស់ប្តូរបាន
៥ ហានិយភ័យខ្ពស់សំរាប់អ្នកវិនិយោគទុនស្មោះត្រង់

Hope that HE Sun Chanthol can overcome those mainstream ills of social graft. Many investors and SMEs are complaining about running businesses in Cambodia as following:
1. Business registration demands high amount of fee, procrastination of time, and facing with many challenges
2. Paying under-table taxes and fees are higher than paying legal state’s tax
3. Local authority and officers demand bribes from business owners without fearing any legal reprimanding
4. His higher superiors and big boss are so corrupted that no way of changing that status quo.
5. High risk for honest investments in the Kingdom of Cambodia


Calgary Real Estate Board predicts housing sales to drop in 2015

Reported by CBC

Calgary Real Estate Board predicts housing sales to drop in 2015

But prices expected to remain stable, or even increase slightly, in Calgary this year

By Kyle Bakx, CBC News Posted: Jan 14, 2015 9:50 AM MT Last Updated: Jan 14, 2015 3:59 PM MT

Calgary's real estate market will slow in 2015, but CREB doesn't believe that means a drop in prices.

Calgary’s real estate market will slow in 2015, but CREB doesn’t believe that means a drop in prices. (CBC)

The stark drop in oil prices is expected to weaken the Calgary real estate market.

The Calgary Real Estate Board (CREB) released its annual forecast for the upcoming year today. It is projecting sales to drop by four per cent in 2015; however, housing prices are expected to remain stable and even increase by 1.6 per cent.

CREB admits the forecast should be taken with a grain of salt, considering the uncertainty in the province right now.

The board bases its forecast on many factors including employment levels, net migration and consumer confidence. The plunge in crude oil prices is impacting all of those factors.

“The challenge is understanding what is happening in energy. No question what happens in the energy sector influences what happens in Calgary’s market,” said CREB chief economist Ann-Marie Lurie. “Given energy has been so volatile, we really have to look at what people are saying about what will happen in energy.”

Economists are either projecting Alberta to enter a recession this year or experience limited growth.

Several Calgary-based energy companies have announced layoffs, including Suncor which announced Tuesday it would be eliminating 1,000 jobs.

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ទិដ្ឋភាព​សំណង់​ធំ និង​ខ្ពស់​ៗ​ជា​ច្រើន​ដែល​កំពុង​លេច​ឡើង​ជា​បន្ត​បន្ទាប់​នៅ​ក្នុង​រាជធានី​ភ្នំពេញ នា​ពេល​បច្ចុប្បន្ន​នេះ ​។ រូបថត ហុង មិនា

ទិដ្ឋភាព​សំណង់​ធំ និង​ខ្ពស់​ៗ​ជា​ច្រើន​ដែល​កំពុង​លេច​ឡើង​ជា​បន្ត​បន្ទាប់​នៅ​ក្នុង​រាជធានី​ភ្នំពេញ នា​ពេល​បច្ចុប្បន្ន​នេះ ​។ ហុង មិនា


Sat, 3 January 2015 

​​​​​ស្ថិរភាព​នយោបាយ​ កំណើន​សេដ្ឋកិច្ច​ និង​លំហូរ​ចូល​នៃ​អ្នក​​វិនិ​យោគ​មក​ពី​ក្រៅ​ប្រទេស​ បាន​ធ្វើ​ឲ្យ​តម្លៃ​ដី​​នៅ​ក្នុង​ខណ្ឌ​មួយ​ចំនួន​របស់​​រាជធានី​ភ្នំពេញ​ហក់​ឡើង​ជិត​ទ្វេ​ដង​ បើ​ប្រៀប​ធៀប​​មុន​ពេល​ពិភព​លោក​ជួប​នូវ​មហា​វិបត្តិ​សេដ្ឋកិច្ច ​និង​ហិរញ្ញវត្ថុ​សកល​​ កាល​ពី​ឆ្នាំ​ ២០០៨​។

យោង​តាម​ការ​សិក្សា​របស់​ក្រុមហ៊ុន​ ប៊ុណ្ណា​ រៀលធី គ្រុប ​ដែល​ទើប​បាន​បញ្ចប់​កាល​ពី​ពេល​ថ្មីៗ​នេះ​បាន​ឲ្យ​ដឹង​ថា ​គិត​ត្រឹម​ត្រីមាស​ទី ៣​ ឆ្នាំ​២០១៤​ នេះ ​តម្លៃ​ដី​នៅ​ក្នុង​​​រាជធានី​ភ្នំពេញ ​មាន​កំណើន​ក្នុង​រង្វង់​ ២០ ​ភាគ​រយ ​សម្រាប់​ដី​នៅ​តំបន់​ពាណិជ្ជ​កម្ម និង​ដី​លំនៅឋាន​កើន​ឡើង​ក្នុង​រង្វង់​ ៣០ ​ភាគ​រយ បើប្រៀប​​ធៀប​នឹង​រយៈ​ពេល​ដូច​គ្នា​ កាល​ពី​ឆ្នាំ ​២០១៣។​ ខណ្ឌ​នៅ​កណ្តាល​ក្រុង​ចំនួន​ ៤ គឺ​ ខណ្ឌ​ចំការមន ខណ្ឌ​ដូនពេញ​ ខណ្ឌ​៧មករា និង​ខណ្ឌ​ទួលគោក តម្លៃ​ដី​បាន​ហក់​ឡើង​ខ្ពស់​ជាង​គេ។

ការ​សិក្សា​ខាង​លើ​បាន​រក​ឃើញ​ថា ខណ្ឌ​ចំការមន ​ជា​ខណ្ឌ​ដែល​នៅ​តែ​លេច​ធ្លោ​ជាង​គេ ​ដោយ​សារ​សង្កាត់​មួយ​ក្នុង​ខណ្ឌ​នេះ គឺ​សង្កាត់​ ទន្លេ​បាសាក់ ​មាន​គម្រោង​សាង​សង់​ធំៗ​ ជា​ច្រើន​កំពុង​​ដំណើរ​ការ​ដូច​ជា The Bridge, Casa Meridian,​ Diamond​ One, និង ​Riviera​ ជាដើម ដោយ​ដី​នៅ​ទីនោះ​មាន​តម្លៃ​ជា​មធ្យម​ចាប់​ពី​ ៤០០០​-៦០០០ ​ដុល្លារ​ក្នុង​ ១​​ ម៉ែត្រ​ការ៉េ​ សម្រាប់​ដី​ពាណិជ្ជ​កម្ម ​និង​ដី​លំនៅឋាន​មាន​តម្លៃ​ចាប់​ពី ​២០០០​-២៥០០ ​ដុល្លារ​ក្នុង​មួយ​ម៉ែត្រ​ការ៉េ​។

Land price chart

ចំណែក​តម្លៃ​ដី​នៅ​តាម​បណ្តោយ​មហា​វិថី​ព្រះសីហនុ ​ម្តុំ​អគារ Gold Tower​ 42 រហូត​ដល់​វិមាន​ឯករាជ្យ បាន​កើន​រហូត​ដល់​ ៨០០០ ​ទៅ​ ៩០០០​ ដុល្លារ​ក្នុង​មួយ​ម៉ែត្រ​ការ៉េ​ និង​ដី​សម្រាប់​ពាណិជ្ជ​កម្ម​ មាន​កំណើន​ក្នុង​រង្វង់​ពី​ ១០​-១៥​ ភាគរយ​ក្នុង​ត្រីមាស​ទី ៣ បើ​ប្រៀប​ធៀប​នឹង​ត្រីមាស​ទី ២ ​ឆ្នាំ​ដដែល​នេះ។

របាយការណ៍​នោះ​បាន​ឲ្យ​ដឹង​ទៀត​ថា​ ដោយ​សារ​មាន​តម្រូវ​ការ​ដី​នៅ​ក្នុង​ខណ្ឌ​ ចំការមន​​ ច្រើន​ទើប ​បច្ចុប្បន្ន​​អ្នក​វិនិ​យោគ​ពិបាក​រក​ដី​ធំៗ​ណាស់​នៅ​ទីនោះ​។

ចំណែក​តម្លៃ​ដី​ក្នុង​ខណ្ឌ​ដូនពេញ​ ក៏​មាន​កំណើន​ខ្ពស់​ផង​ដែរ ​ដោយ​បច្ចុប្បន្ន​នេះ ​ដី​សម្រាប់​តំបន់​លំនៅឋាន​មាន​តម្លៃ​ចាប់​ពី ​៣៥០០​-៤០០០​ ដុល្លារ​ ដី​តំបន់​ពាណិជ្ជ​កម្ម​មាន​តម្លៃ​ចាប់​ពី​ ៥០០០​ ទៅ​ ៧៥០០​ ដុល្លារ​ក្នុង​មួយ​ម៉ែត្រ​ការ៉េ។ ​បើ​គិត​ចាប់​ពី​ស្តុប​វិមាន​ កាណាឌីយ៉ា ​ទៅ​ដល់​ភ្លើង​​អគារ Gold Tower 42 តាម​បណ្តោយ​មហាវិថី​ព្រះ​មុនីវង្ស ដី​ទីនោះ​ភាគ​ច្រើន​គឺ​ជា​ផ្ទះ​ហាង​។ ​តំបន់​ក្នុង​ខណ្ឌ​​ដូនពេញ ក៏​មាន​សក្តានុ​ពល​សម្រាប់​ការ​វិនិ​យោគ​ផ្នែក​សណ្ឋាគារ​ផង​ដែរ​។

តម្លៃ​អចលន​ទ្រព្យ​ក្នុង​ខណ្ឌ ​៧មករា ក៏​មាន​ការ​ហក់​ឡើង​ខ្ពស់​ក្នុង​រង្វង់​ពី ​១០ ​ទៅ ​​១៥ ​ភាគរយ​ផង​ដែរ​នៅ​ក្នុង​ត្រីមាស​ទី​ ៣ ​កន្លង​មក ​ព្រោះ​នៅ​ក្នុង​តំបន់​នោះ​មាន​គម្រោង​សាង​សង់​អគារ​ពាណិជ្ជ​កម្ម​​ច្រើន​ ពិសេស​ការ​សាង​សង់​គម្រោង​អាផាតមិន ​និង​សណ្ឋាគារ ​នៅ​ក្នុង​សង្កាត់​បឹងព្រលឹត​ និង​សង្កាត់​អូឡាំពិក ដូច​ជា​អគារ ​Phnom Penh Tower, ​Olympia​ City ​ផ្សារ​ទំនើប ​City ​Mall ​និង​ផ្សារ​អូរឫស្សី ជា​ដើម។
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