Logo of Phnom Penh Post newspaper Phnom Penh Post - Royal Group inks $35 million road deal on Koh Rong

Royal Group inks $35 million road deal on Koh Rong

Content image - Phnom Penh Post
Royal Group CEO Kith Meng (left) and Asian Trails CEO Luzi Matzig. Supplied

Royal Group inks $35 million road deal on Koh Rong

Royal Group Koh Rong Development Company and Sinohydro Corporation Limited reached a $35 million deal on Tuesday to build a 70km road on Koh Rong Island.

The road will be 8m wide and is expected to take 16 months to complete, according to the plan approved by the Council for the Development of Cambodia’s (CDC)Inter-Ministerial Committee on October 9, 2010, a Royal Group press release said.

CDC deputy secretary-general Chea Vuthy said at the signing ceremony in Preah Sihanouk province that the deal proves Royal Group’s commitment to the island’s development.

Royal Group has held the lease agreement with the government since February 28, 2008, for the development of the island into a beautiful attraction for local and foreign tourists.

“I appreciate the Royal Group building good cooperation with the authorities and the people living on Koh Rong. Besides announcing the 70km road, I hope Royal Group will also start building other projects in the approved master plan,” Vuthy said.

Preah Sihanouk provincial governor Kuoch Chamroeun presided over the ceremony.

“With the construction of the road, the company will continue to build other vital infrastructure projects like drainage systems, and those for power generation and water supply, and an airport.

“I believe there is a lot of need for the development of Koh Rong Island, particularly water treatment, a rubbish-recycling plant, and a power plant to sustain and beautify the island,” he said.

The master plan between Royal Group and the government was approved by the CDC in 2008, and the island was officially handed over to the company.

The company has registered the land in line with sub-decree No 114 and received 33 long-term lease certificates.

One project is The Royal Sands, a five-star resort that opened in 2018. The resort is a joint venture between Royal Group and Asian Trails CEO Luzi Matzig who invested $40 million in the first phase of investment on the island.

Koh Rong is Cambodia’s largest island at 78sq km and lies approximately 22km to the northeast of Sihanoukville. It has 28 beaches and can be reached by boat in approximately 45 minutes.

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Kampot tourism quay ‘90% done’

    Construction on Kampot International Tourism Port – a 4ha quay in Teuk Chhou district about 6km west of Kampot town – has fallen off track, reaching 90 per cent completion, according to a senior Ministry of Tourism official last week. The project is now planned to be finished

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42