Japan’ SMBC looks to chip in $42M for infrastructure plans

SUMITOMO Mitsui Banking Corporation (SMBC) has expressed an interest in financing more than $42 million of the Kampot multi-purpose port expansion and a range of related logistics development projects, according to Minister of Public Works and Transport Sun Chanthol.

The minister held a working meeting with a delegation from SMBC on January 30.

Following the meeting, he explained that the development of transport infrastructure and logistics remains the government’s main strategy to stimulate economic growth.

Chanthol discussed the expansion of the Kampot seaport with the SMBC representatives, and also mentioned a proposal for the digging of a canal which would link the Bassac River to the port.

“The proposed canal would facilitate the swifter transportation of goods by waterway, saving time and trimming costs,” he said.

“We have already carried out a detailed technical and legal analysis of this project, and there are no downsides to the canal. If we can secure a development partner and make it happen. It will be a historic project and will change commercial transportation in Cambodia,” he added.

Rajeev Kannan, executivedirector of SMBC Asia-Pacific, expressed his keen interest in the ministry’s development projects and praised Cambodia’s progress in infrastructure and transportation.

He said SMBC is looking for opportunities to cooperate with the government, especially in public works projects like logistics and ports.

“We are very interested in partially financing some major projects – like the Kampot multi-purpose port and the Kingdom’s broader logistics development master plan,” he added.

Regarding the financial sector for development projects, SMBC said it has many years of experience in the field of infrastructure development, both inside and outside of the region.

“We are currently working with ACLEDA Bank to implement sustainable projects in support of the government incentives to increase the use of electric vehicles,” said Kannan.

According to Chanthol, Cambodia will need about $48 billion to implement 330 transportation system projects over the next 10 years. The investment will increase the efficiency of transportation, logistics and supply chain development.