PHNOM PENH, April 19 (Xinhua) -- Cambodia's Ministry of Public Works and Transport and the International Finance Corporation (IFC) on Wednesday signed a financial advisory services agreement on the development of a new 200-million-U.S.-dollar logistics complex in the coastal southwestern province of Sihanoukville.
Under the deal, the IFC would help the Cambodian government conduct an international competitive tender to select a qualified private developer in accordance with the country's public-private partnership (PPP) law, said a joint press statement.
"The project is expected to be developed in phases, with an overall capital cost estimate of about 200 million U.S. dollars," the statement said.
Speaking at the event, 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 the Southeast Asian country.
"Our objective is to position Cambodia as a regional logistics transfer hub in Southeast Asia," he said.
With its strategic location in Sihanoukville and well connected to the Phnom Penh-Sihanoukville Expressway, railways, and an airport, the complex can supplement the Sihanoukville Autonomous Port, which is Cambodia's sole international and commercial deep-sea port, handling two-thirds of the total container throughput in the country, the statement said.
A modern and transport-integrated logistics complex supporting the port will help accelerate movement of exports and imports and reduce port congestion, it said, adding that the project will improve efficiency and lower logistics costs in Cambodia.
The developer is expected to finance, develop, and operate the infrastructure, facilities, and systems within the complex under a long-term PPP contract with the government, the statement said, adding that the tender award to the winning bidder is likely to be granted by late 2024, with the hub to be constructed over three years.
"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," Asad Yaqub, IFC resident representative for Cambodia, said at the signing ceremony. ■