Chinese linked to filling of lake

Friday, 29 January 2010

Sebastian Strangio and May Titthara
Rights groups raise fresh concerns about transparency of Boeung Kak project

Boeung Kak lake seen from a resident’s home on Thursday.

CHINESE companies have been closely involved in the controversial development of Phnom Penh’s Boeung Kak since its inception, according to news reports and local rights groups, who said they became aware of the companies’ role after a research group from China visited the site last week.

Pen Raingsey, manager of the land and livelihoods program at the NGO Forum, said the group, which included Chinese academics and journalists, revealed Chinese news reports confirming the deals. “We weren’t aware that the investment in Boeung Kak was Chinese. We were surprised because our researchers tried to find the source of the funding, but weren’t aware of this,” he said.

It has long been unclear whether Shukaku Inc, the obscure local developer in charge of the 133-hectare commercial and housing project, has been backed by foreign investors. But a series of Chinese-language news articles available online reveals a long history of Chinese involvement in the controversial project, following the signing of a US$79 million lease agreement between City Hall and Shukaku in February 2007.

In April of that year, the Kunming-based Yunnan International Economic and Technical Cooperation Corporation signed an agreement with CPP Senator Lao Meng Khin, the chairman of Shukaku, to develop Boeung Kak as a “multi-purpose living and recreation centre” called New East City, as well as a tourism “eco-garden” in Sihanoukville. Present at the signing, according to state media, were Deputy Prime Minister Sok An and Qin Guangrong, the governor of China’s Yunnan province.

Additional Chinese news reports described the project as Yunnan’s “largest foreign investment”, putting the total cost of the project at around $1.5 billion. One said $680 million would be spent on the first construction phase, to run from 2007 to 2010, with the project to be completed in 2013.

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