A Chinese and local developer are in discussions with Phnom Penh’s City Hall to build a $3 billion, 500-metre-high twin tower project in the center of the city, making it the tallest building in the capital.

The project will be a joint venture between Cambodian-owned Thai Bun Rong Company and Chinese developer Kia Nip Group, and will include commercial office space and a cultural centre.

Long Dimanche, City Hall’s spokesperson, confirmed the 111-storey twin tower project was proposed, but that the developers were asked to provide a detailed impact assessment report.

“Only with a detailed study can we submit it to the government for approval.

It is an advantage for the country to have a skyscraper like this, but we need to balance the benefits with the impacts,” he added.

Ng Lap Seng Sun, a representative for the Kia Nip Group, was quoted by local newspaper Rasmei Kampuchea saying that the skyscraper will attract foreign investment to Cambodia, as it will be a reflection its economic growth and political stability.

Details of the proposed construction and completion were not divulged.

The 500-metre tower will be the second proposed mega skyscraper in Phnom Penh, after the 555-metre Diamond Tower was unveiled by Prime Minister Hun Sen in 2010.

However, Diamond Tower, which was expected to be completed by 2017, has still to begin construction.

A similar project, Golden Tower 42, is also pending completion due to financial issues.

Cheng Kheng, president of the Cambodian Valuers and Estate Agents Association, was optimistic about the viability of the project, provided the developers can complete it before other similar mega skyscrapers.

“They need to have the amount of capital to support the construction of the building in their own pocket rather than depend so much on the capital from unit sales,” he explained.

Nguon Chhayleang, CEO of Century 21’s franchise Regent Realty, however, said the Cambodian market was still “too small” for such a development.

“We don’t need this kind of building when we are still in the development stage.

We need to have more development of infrastructure rather than high buildings to show off.”

“[If] the money was used to build or expand the road or building more flyovers, I think that would be much better than building the high-rise.”

“When people who stay there and come out you can imagine the traffic.”