Environmental and Security Concerns Surround Funan Techo Canal As It Begins Construction

On August 5th, Cambodian Prime Minister (PM) Hun Manet presided over a ceremony to officially launch construction of the Funan Techo Canal project in Kandal's Province's Kien Svay District. The PM gave a speech that pointed out the canal's economic and agricultural importance and how its construction shows Cambodians have a "sense of patriotism and national unity." Manet said that some Cambodians fear that the canal would mean the country would lose sovereignty and cause national divisions, and that these fears caused some people to have doubts about the project..However, Manet said that the canal does not compromise the country's sovereignty but "enhances Cambodia's potential to defend its national independence and sovereignty." He pointed out how some groups attempted to "distort information related to the canal project by accusing the Cambodian government of undermining national sovereignty." This distorted information caused a small minority of citizens to have suspicions and prevented the canal from gaining more acceptance. The PM said that these doubts and suspicions caused mistrust and division within the Cambodian people and decreased their level of trust in the government..Funan Techo Canal Project.The Funan Techo Canal Project, also known as the Tonle Bassac Navigation Road and Logistics System Project, began in July 2022 when Cambodia's Ministry of Public Works and Transport (MPWT) released its master plan for multi-mode transportation connectivity and logistics. The plan includes infrastructure development projects to construct airports, canals, expressways, logistical hubs, ports, railways, and roadways. MPWT Director General of the General Department of Waterway and Maritime Transport and Ports, Mak Sideth, said the plan "will include the restoration of waterway and maritime transportation systems by digging waterways deeper and wider.".Vessels moving goods to Cambodia can go through Cai Mep International Terminal and Vung Tau Port in Ba Ria-Vung Tau Province, located in southeastern Vietnam. Mak pointed out that larger vessels are required to wait for the water level to rise to reach Cambodia due to the waterways' shallow depth; however, smaller vessels can travel to the terminal and port without issue. The Director General said that the traders complained about the waterways' shallow depth, the high fees, and the requirement to request documents from Vietnam's Ministry of Industry and Trade to transport goods into Cambodia. Furthermore, he also alleged that the fees the government charges are used for the development of Ho Chi Minh City..Sideth said the plan would allow Cambodia's customers to transport goods directly into the country through Kep Province or Sihanoukville Autonomous Port. He also said that the ships can then sail into Kandal Province and deliver goods to the capital of Phnom Penh via its autonomous port connected to the Bassac River. Sideth said that the vessels would no longer need to go through Vietnam to reach Phnom Penh or interior parts of Cambodia once the plan is completed. He said that the "master plan also includes plans to develop seeder ports, but we have to consider all aspects." Sideth said the plan will evaluate where to build the seeder ports "for easier shipment of goods and how many of them should be set up depending on the budget.".He said the plan would allow Cambodia's customers to transport goods directly into the country through Kep Province or Sihanoukville Autonomous Port. He also said that the ships can then sail into Kandal Province and deliver goods to the capital of Phnom Penh via its autonomous port connected to the Bassac River. The Direct General said that the vessels would no longer need to go through Vietnam to reach Phnom Penh or interior parts of Cambodia once the plan is completed. He said that the "master plan also includes plans to develop seeder ports, but we have to consider all aspects." Sideth said the plan will evaluate where to build the seeder ports "for easier shipment of goods and how many of them should be set up depending on the budget.".PM Hun Manet announced that the project will be a joint venture by the Sihanoukville Autonomous Port (SAP), Phnom Penh Autonomous Port (PPAP), and a private Cambodian company. The investments will make up 51 percent of the venture, and the China Bridge and Road Corporation (CRBC) will make up the remaining 49 percent under the Build-Operate-Transfer (BOT) contract. The canal will cost approximately $1.7 billion USD to build. Hun pledged that the Cambodian government will not set up any fundraising initiatives for the project, so no corruption can occur..On June 6th, Manet announced that construction for the Funan Techo Canal project will officially begin on August 5th. Manet made the announcement during the inauguration ceremony of the Kampot Multi-Purpose Port in Kampot Province. The PM said that the canal "is a testament to our collective efforts," and its expansion "may require some sacrifices from the people along its path, but your participation is crucial." However, he pointed out that the people who live along the canal's path would have access to water to travel throughout the year. Manet urged people not to buy land along the canal's path to receive compensation from the state during the project's construction. He said that if Cambodians "are truly patriotic, desiring Cambodia's independence in transportation, economic development in the southwest, and the overall benefit of our nation from this historic canal, then we must work together." Manet urged Cambodians "not to fall for the tactics of a small group trying to sabotage the beneficial megaproject." He also urged the people not to "make any judgment on this project," which "will be constructed for the benefit of the people as a whole, so please support our development.".The canal's planned route will be about 112 miles (180 kilometers) long and stretch from the Takeo Canal, located on the Mekong River, through Kampot and Takao Provinces, and to Kep Province, located on Cambodia's coast. The waterway will be about 238 feet (100 meters) wide upstream and 263 feet (80 meters) downstream, with a depth of approximately 18 feet (5.4 meters). The canal would have a navigation depth of about 16 feet (4.7 meters) as well as a safety gap of 2.30 feet (0.7 meters) wider. The waterway would have three dams with sluices, a 130-mile (208-kilometer) sidewalk, and 11 bridges built along its length. The canal will have infrastructure to provide vessels with navigational and other cross-river assistance..The waterway will benefit Cambodia in several ways after it is completed in 2028. The canal will boost Cambodia's economy by reducing the amount of taxes paid to Vietnam for its vessels traveling down its section of the Mekong River. The Cambodian government is expected to earn about $88 million USD a year from transportation through the canal by 2050 and will reach $570 million USD a year after. The canal would increase the number of Cambodian products exported from Sihanoukville Autonomous Port (SAP) from 67 to 90 percent. Furthermore, the waterway would also decrease the amount of traffic at the Phnom Penh Autonomous Port (PPAP) from 33 to 10 percent. The changes in exports from the SAP and PPAP mean that the canal would decrease the amount of Cambodian products through Vietnamese ports by at least 70 percent. The Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia, Sun Chanthol, said that out of the 112-mile canal, only short sections will need to be dug..The canal would also significantly increase Cambodia's ability to irrigate the southwestern region of the country, which would benefit the agriculture and aquaculture sectors. The government would also improve its flood prevention capabilities to control flooding along the canal's route and the wider region. The government also "fairly compensated" approximately 2,000 families for the land that would be affected by the project and said that speculators "should not purchase land along the project" to receive compensation. Sun said China did not order Cambodia to build the canal, and it did not play a "role in the Kingdom's decision to initiate construction" of the project. Former PM and current Senate President Hun Sen also reiterated that China did not play a role in the canal and that Cambodia will not "allow Chinese troops into the country" because it would violate the country's constitution..Vietnam's Environmental and Security Concerns.Vietnam is concerned about the potential effects the canal would have on the Mekong River and the country's security. Regarding the potential environmental impacts, the most significant effect is that the canal could significantly change the water flows because the canal's first section would connect to the Hau and Tien Rivers, which are major branches of the Mekong River. Furthermore, the canal would allow Cambodia to use immense quantities of water for agricultural and industrial development due to its connection to the rivers. The canal would draw significant quantities of water from the Tien River because it accounts for 90 percent of the Mekong's downstream watershed, while the Hau River accounts for the remaining 10 percent. The difference in water quantity between the Tien and Hau Rivers means that the canal would redistribute the water between the rivers flowing into the Vietnamese sections of the Mekong..The decrease in the amount of water that flows into the Hau River as it enters Vietnam would cause erosion from the city of Chau Doc to Chau Phu District, where the Hau meets the Vam Nao River. This section of the Vam Nao is narrow and vulnerable to erosion because it spans only a few hundred feet wide and affects the river's water regulating ability. Another notable effect of the canal would have been the increased shortage of fresh water for daily use in Vietnam. The water shortage would affect the Mekong River Delta's agriculture and industrial production. The shortage would cause deeper and more frequent saltwater intrusions that would disrupt the Mekong River's ecosystems. For example, the water flow in the Hau and Tien Rivers that enters the Mekong River Delta would decrease by approximately 50 percent during the dry season. The decrease in freshwater volumes would allow for saltwater to intrude deeper into the region, which would affect approximately half of the cultivated area of the Mekong Delta during the dry season and high tide periods..The Vietnamese government's one-million-hectare high quality rice program would also be impacted by the canal because of the scarcity of water and declining soil health in the region. The decreased soil health and water scarcity would be especially felt during the winter-spring crop season. The scarcity of water would also negatively affect dozens of climate change adaptation projects and poverty alleviation projects that are planned or currently underway. The decrease in water would cause the population to fall back into poverty and increase migration from the region. The canal's emphasis on agricultural development would decrease the already diminished annual floodwater levels that flow into the Mekong River Delta. The floodwaters are important for the region because they provide breeding sites and migration routes for several fish species, distribute silt to revitalize agricultural land, recharge aquifers, prevent intrusion by saltwater, and remove chemical residues from previous planting seasons. Vietnam said the Mekong River Delta's lower areas recorded decreased freshwater flows at the starts of dry and rainy seasons, which allows saltwater intrusions to occur early and reshape the Delta region..Vietnam's second concern is the limited amount of information Cambodia shared with the country about the canal. The limited information does not allow Vietnam to complete a full assessment regarding the canal's true impact on erosion, salt intrusion, sediment, and water levels. Cambodian authorities have not explained to Vietnam how they would operate the transportation route, specifically the water gates. Furthermore, Vietnam does not have information regarding which Cambodian entity would be responsible for monitoring the water flows to ensure that the announced average of 127 ft3/s (3.6 m3/s) and 177 ft3/s (5 m3/s) is maintained. The government wants information regarding how the solutions would minimize any negative impacts from accidents, hazardous chemicals, or oil spills that might occur..A preliminary assessment by a Vietnamese institute, the Southern Institute of Water Resources Research, produced different numbers. The study found that the increased irrigation and opening of the canal's sluices would mean the maximum capacity would be significantly larger than the data Cambodia provided. The institute recommended that Cambodia increase information sharing about the canal with the Mekong River Commission (MRC) and the Vietnamese government. Both sides would then have the ability to conduct a more thorough study. However, if the findings from the new report are greater than Cambodia's study, then the MRC and Vietnam would need to complete a joint assessment on the canal's cross-border impact on all areas and propose new minimization measures..Vietnam's final concern is the potential for Cambodia to allow the People's Liberation Army (PLA) to use the canal. This concern stems from the lack of transparency regarding the People's Liberation Army Navy's (PLAN) presence at Ream Naval Base. Cambodia said that China agreed to pay to enhance the base but did not provide further information regarding the 2019 agreement. The concern is that China agreed to provide 49 percent of the canal's funding, and in return, Cambodia would allow the country full access to the waterway to include the PLA. The waterway would allow the PLA to move supplies and troops to Ream Naval Base during both peacetime and wartime..Analysis.The Funan Techo Canal will significantly increase Cambodia's economic, agricultural, and industrial capacities after it is completed. Vietnam's concerns about the canal are justified because of Cambodia's past actions and lack of transparency. Cambodia would greatly benefit from the canal because the Cambodian boats would pay fees and taxes to the country instead of Vietnam. Furthermore, Cambodia would extract the same fees from vessels from surrounding countries, such as Laos and Thailand, that also use the Mekong River to conduct trade. The ships would have an incentive to use the canal because they could save significant amounts of money compared to using the Vietnamese section of the Mekong River. The canal would increase the area's agricultural potential because of the additional irrigation water. For example, the increased water would allow for bigger crop yields in the area or greater capacity to sustain larger numbers of animals in the area. The canal would increase the industrial capacity and transportation options in the area because it would support the growth of industries along the canal's route..While the canal would significantly increase Cambodia's capacities, the lack of transparency surrounding the agreement and the country's handling of other projects justifies concerns. Manet's comments about some Cambodians mistrusting both the canal and the Cambodian government show how some within the country likely view the project. They view the project with immense suspicion because the canal could lead to Cambodia losing its sovereignty to China. Their fears are based on China's significant role in the project and how the country could use it to force Cambodia to give up control over the waterway. Some suspect that the two countries reached a secret agreement that allowed China some form of control in return for its assistance with the canal. The agreements could consist of China having the ability to control which vessels use the canal, prioritizing Chinese ships to sail down the waterway, or allowing the country to pay heavily subsidized passage rates and taxes. Another suspicion is that the agreement may have secret clauses that allow ownership of the canal to transfer from the Cambodian joint venture to the CRBC if Cambodia falls behind in loan repayments. This fear is justified because of past instances of companies signing over control over previous Belt and Road Initiative (BRI) projects, such as Sri Lanka's Hambantota International Port, to Chinese State Owned Enterprises (SOEs)..Vietnam's concerns stem from Cambodia's not sharing information about the canal and the potential for the PLA to access the waterway. The lack of information that Vietnam received from Cambodia regarding the project presents a significant concern because of the potential environmental consequences that may occur. The Mekong Delta already suffers from reduced water flows due to overuse, and the canal would significantly compound these issues. The canal would further reduce the amount of water that flows into Vietnam's section of the Mekong River, which would cause salt intrusions to enter further reaches of the river and damage cropland and ecosystems. The reduced water flows would negatively affect the riverbanks of the Mekong River and tributaries by increasing their erosion rates. The increased erosion would lead to a reduction in the amount of farmland that would directly impact the Mekong Delta's agricultural productivity. Vietnam is concerned with Cambodia's ability to maintain the waterway's water flows because of the implications of not maintaining them at optimum levels. Salt intrusions could occur if the canal's water flows are not maintained at rates fast enough to maintain their levels at the necessary rates. The intrusions could enter the Hau and Tien Rivers because the flows are too slow to prevent seawater from entering the canal. The salt intrusions could potentially affect the entire length of the Vietnamese section of the Mekong River..The potential for the People's Liberation Army (PLA) to access the canal is a security concern to Vietnam. This concern stems from the lack of transparency regarding the People's Liberation Army Navy's (PLAN) presence at Ream Naval Base. Cambodia said that China agreed to pay to enhance the base but did not provide further information regarding the 2019 agreement. Vietnam's suspicion is that China agreed to provide 49 percent of the canal's funding, with Cambodia giving the country full access to the waterway to include the PLA. The waterway would allow the PLA to move supplies and troops to Ream Naval Base during both peacetime and wartime. Furthermore, access to the canal could allow China to deploy troops and riverboats to conduct operations in the Mekong River Delta if war breaks out between China and Vietnam. Having the ability to potentially deploy units into the Mekong River Delta would force the Vietnamese military to deploy units to the region to increase security. China could use the canal to deploy units along the Mekong River and capture Ho Chi Minh City.