Prime Minister Hun Sen and South Korean ambassador to Cambodia Park Heung-kyeong are scheduled to preside over a groundbreaking ceremony for the upgrading of National Road 48 project on January 3, 2022, according to a joint press release.

The notice said the project was funded by a concessional loan from the South Korean government provided through the Economic Development Cooperation Fund (EDCF), which is the Korean Official Development Assistance (KODA).

The project covers a total length of 148 km of road located in Koh Kong province starting from the junction of National Road 4 in Ou Chrov village of Chamka Loung commune of Sre Ambel District up to Khemerak Phumin town in Koh Kong province. This is a section of ASEAN highway 123 connecting Vietnam and Thailand.

The notice added that the expected total project cost to upgrade National Road 48 is $100,686,000 with the EDCF loan covering $87,434,000 of the project cost.

The Export-Import Bank of Korea (KEXIM) is responsible for the servicing of the EDCF loan on behalf of the Korean government and KEXIM will finance the detailed design, construction supervision and construction work cost, while the Cambodian government will finance the cost of resettlement, UXO clearance, project management and taxation.

The press release said that the work on National Road 48 is expected to take 32 months starting from November 01, 2021 and running to June 30, 2024.

Once completed, National Road 48 will play a crucial role as a potential trade artery of the national economy by connecting transportation, fostering trade with neighboring countries, promoting tourism potential along the coastal corridor and improving traffic safety for the citizens.

An artist's rendition of the National Road 48 project in Koh Kong province. SUPPLIED

Therefore, this project will advance regional economic development, reducing logistics times and costs as well as contributing to the national transportation network, the press statement said.

According to the Phnom Penh office of the Export-Import Bank of Korea in charge of servicing the EDCF loan, the upgrading of National Road 48 project is one of the 12 EDCF projects under the Ministry of Public Works and Transport.

From 2001 to the end of 2021, the Republic of Korea has provided 30 concessional loans to Cambodia through the EDCF with an amount totalling to $1.2 Billion for the development of key sectors including transportation, water resources, wastewater management, health and emergency response to the epidemic.

The Ministry of Public Works and Transport also held a meeting on December 16 to prepare for the groundbreaking at the construction site for the road upgrading project. The ministry visited the site on December 20 to study the location of the ceremony to ensure security, safety, public order and a good environment for the attendees.