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CDB provides loan for Koh Rong Eco-Tourism Complex Construction Project
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Royal Group Koh Rong Development Co. Ltd. |
| Country | Cambodia |
| Start Date | Jan 01, 2022 |
| End Date | Oct 24, 2026 |
| Duration | 1,757 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 105099 |
Grant Description
CDB provides loan for Koh Rong Eco-Tourism Complex Construction Project In February 2008, Royal Group Co., Ltd. — a company owned by Cambodia's richest crony-capitalist, Kith Meng — and the Council for the Development of Cambodia (CDC) signed a 99-year lease agreement.
The lease of around one-fifth of the island was granted to Royal Group Co., Ltd. to develop Koh Rong Island into a commercial development area and an ecotourism resort.
The agreement also stipulated that Royal Group Co., Ltd. would also build airport infrastructure to aid the island’s economic growth.
Then, in December 2019, Royal Group Co., Ltd. and Royal Galaxy Group announced plans to created a joint venture — known as Royal Group Koh Rong Development Co. Ltd. — to invest $285 million in the construction of a resort project on Koh Rong Island in Preah Sihanouk Province. China Development Bank (CDB) subsequently issued a loan to Royal Group Koh Rong Development Co.
Ltd. for the Koh Rong Eco-Tourism Complex Construction Project.
The project involves the construction of a five‑star hotel, international convention center, resorts, duty‑free shops, supermarkets as well as 600 units of a villa‑style resort.
The project is also expected to involve the construction of 70 km of roads, an airport, solar power stations, an electricity grid, and a clean water system on the island. However, the Koh Rong Eco-Tourism Complex Construction Project has faced significant implementation delays. On July 14, 2020, Royal Group Koh Rong Development Co.
Ltd. and Sinohydro Construction Co.
Ltd. signed a $35 million construction contract to support the development of 70 km of concrete roads on Koh Rong Island. Royal Group Koh Rong Development Co. Ltd. and Cambodian Lan Cang Jiang Engineering Co.
Ltd. (a Chinese-owned company) signed an EPC contract to support the construction of an airport (with the capacity to accommodate around 138,000 passengers annually) and a resort on Koh Rong Island in January 2023. Earthworks for the first phase of construction of the Koh Rong International Eco-Tourism Airport began in January 2024.
Staff Comments
- The precise value of the CDB loan is unknown. For the time being, AidData assumes that it is equivalent to 70% of the total project (investment) cost ($199.5 million). This issue warrants further investigation.
- Evidence of CDB financing can be accessed via https://www.dropbox.com/scl/fi/8yoafp7pmr5ixmh6ybfx9/52b88-jiajia-xing-cv.sxh.13dec15docx.pdf?rlkey=4as2u04rp3mma11m19056v2nw&dl=0.
- The Chinese project title is 皇家银河集团高龙岛皇家银滩游乐度假区项目 or 高龙岛皇家银滩游乐度假区项目.
Sources & References
- Xing Jiajia Resume
- 高龙岛皇家银滩游乐度假区，泰国湾上的人间天堂！
- Royal Group announces US$300 million investment on Koh Rong Island
- Royal Group Invests US$35 million Building 70km of Roads on Koh Rong Island
- ODFDL Resume
- Cambodia's airport dreams stall as Chinese money dries up
- Koh Rong int’l airport construction begins
- Koh Rong Development Project Layout Revealed – New Images
- Koh Rong $285 Million Investment Announced
- Cambodia: Market Profile
- Dara Sakor International Airport receives first chartered flight
- Dara Sakor International Airport Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Royal Group Koh Rong Development Co. Ltd.
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