The Cambodian government has taken a decisive step towards advancing infrastructure development by trading 37,569 hectares of state-owned land in Koh Thom district, Lerk Dek district, and Sompov Poun Town. This transaction, valued at $45 million, involves the construction of crucial road networks, bridges, and administrative buildings, as per an official letter issued by Secretary-General H.E. Hing Thoraxy on August 18, 2023.
The exchange, as detailed in the source letter, involves the transfer of 37,569,072 square meters of four state land plots in Kandal province to KT CHINA ASIA GREEN CITY INVESTMENT CO., LTD, a private company. In return, the private company is tasked with constructing essential infrastructure valued at a total of $45 million.
The four state land plots encompass segments of Krobei Kon reservoir, Mlek reservoir, and Sras Prambei reservoir in Koh Thom district and Sompov Poun town. The infrastructure development includes:
Construction of two roads, totaling $12 million in worth, spanning a combined length of 20 km. These roads will connect National Road 23 to the bridge across the new Basak River in Sompov Poun town.
Development of two roads, valued at $8 million, with a total length of 30 km. These roads will link National Road 23 Crosspoint to Paknam Road, traversing through Lerk Dek district, Koh Thom district, and Prek Chrey commune of Sompov Poun town.
Building a bridge across the Basak River, measuring 500 meters in length, 12 meters in width, and carrying a $24 million price tag. This bridge will serve as a vital link between Sompov Poun commune and Prek Chrey commune of Sompov Poun district.
Construction of a municipal administration building, estimated at $1,050,000 in value.
The terms and conditions of this land exchange mandate that the Ministry of Interior and the Ministry of Economy and Finance jointly declare the transfer of lands to the company before the commencement of infrastructure construction. Additionally, the government will oversee the stamp duty related to this transaction.
Furthermore, the private company is required to compensate affected individuals at a rate ranging from $0.15 to $0.20 per square meter. In the next phase, the Ministry of Interior will lead discussions between the government and the private company to initiate the construction of the agreed-upon infrastructure.
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