|
Unofficial
Translation
Selected
Comments at the Inauguration of the Bridge across Tonle Sap River and
the Road Connecting the Bridge to National Road 6A
| BOT
Form of Investment | Private Sector
and State Investment | Cambodian Opposition | Traffic Congestion Relief | Local Private Investment | Peace and Stability | Investment Law | Invest in National
development |
20 September 2010
BOT Form of Investment
My wife and I are
so happy today that we have the opportune moment to join with all of our
people here today to put into official use two new achievements - the
996.2 Bridge at Prek Phnov across the Tonle Sap River and the 1,543.07
meters road that connect the bridge thereof to the National Road 6A. It
is indeed a great pride to have the two achievements by the LYP group
who in 2005-06 built the similar BOT (build-operate-transfer) bridge
across sea corridor in Koh Kong province.
The bridge and road
that we put into use today has indeed stemmed from the Royal
Government’s investment policy that attracts private sector
participation in the development of infrastructure, which is primary
objective. I mentioned already that before the achievements that we put
into official use today, the LYP group has in fact built a bridge across
the sea corridor in Koh Kong province, with a connection to the Jam Yiem
pass at the border with Thailand. The Prek Phnov Bridge and road which
cost totally 42,550,000 USD will effectually be transferred to the State
after 30 years operation. As of now the project will play a major role
in relieving the traffic congestion in Phnom Penh.
In Cambodia there
have been just few pay tolls like the one in Koh Kong province, national
road 4, and the Sar La and Veng Sreng roads. If we were to look at other
countries, take for instance area around Bangkok or France or New York,
it is likely impossible to travel without having to pass a pay toll. In
some case drivers of vehicles have to punch cards paying toll or they
will not get a pass. That is why private sector in every country has
been encouraged to join in infrastructural development investment,
especially construction and maintenance of roads and bridges.
I would like to
inform our people that people who traverse on foot, by bicycle, motor
cycle, pulled tractor vehicle and tri-wheeled vehicle are not subjected
to fee paying rule. Charges will be imposed on tourist cars, pickup
trucks, twelve-seat, 15-seat and 24 seat vehicles, ten wheel
transporters and over. However, for the people to travel to and from in
the celebration of Projum Ben Day, I would ask Oknha Ly Yong Phat to
allow our people to traverse for free for 25 days - from September 20
through to October 15.
Private Sector
and State Investment Project
There have been
requests for BOT development of national roads 5 and 6 and I do not give
my consent yet. It should be noted here that the longer road we build
the more we pay every year for maintenance and it is in this matter that
I beg tax payers to understand why we need to impose tax on all
vehicles.
In the period after
1979, the State of Cambodia used to talk about joining efforts between
state and people in doing something. Lately we have come to the stage
that state and private sector work together. For a better understanding
of our people, I would like to mention a couple of formula that the
state and private sector could go hand in hand. The one we have here is
BOT as I just mentioned. Once the bridge and road are transferred to the
state after thirty years, the state will then have to decide how and
where to use income for.
Two other forms so
far known and in applications are BOO, which is ‘Build, Operate, Own’
formula, and BCT, which is ‘Build, Cooperate, Transfer’ like we have
done with CAT – Cambodian Air Traffics. As far as BOT is concerned, the
state put down investment, after the construction of which they will
operate for a certain period of time. As in this case the company will
operate the bridge and road by charging every traveler with vehicle. In
the field of electricity generation, they first build the infrastructure
and produce electricity, whereby they sell for a certain period of time
to the state and then the project will be transfer to the state.
Having said so I
would also have your impression that the state has also made investments
in various infrastructural development projects, which used both the
state budget and also those grants from foreign friends.
The Cambodian Opposition – No
Future
I am sure those in
opposition who have mainly come from abroad should be familiar with this
pay toll system because they come from that civilization. If they go no
opposing in absolute and blind term, I doubt if they are going to have
any future. In recent days it seems they have tried the water. A letter
(concerning court decision with regard to an opposition parliamentarian)
has been sent to Samdech Chea Sim and his response was to let the
problem be resolved in court. If the same suggestion were to be sent to
me later I would give it a short answer ‘as a puppet, I have no rights
to resolve the case,’ since they like to call me a puppet.
They have been
preaching about international pressure and in four days from today I
will take part in a meeting with the presence of HE Barak Obama,
President of the United States of America. What do they expect? It
should not be a consent that one, as a political Party leader, may just
pull out any border markers, while preaching about international
pressure. Before soon they will come giving talk to instigate ill
consent about this project. Well if they do not approve it they may as
well avoid using it.
It is ridiculous
that one in the opposition has brought her/his remark against the
information I share with our people the other day about the 555 meter
building project of Okna Pong Khieu Se. S/he said it is not time for the
Government to use money for such a building and the money should in fact
be used for agricultural development and improvement of people’s
livelihood. I would not hesitate to accept this suggestion if it is the
state money. How could a parliamentarian in the opposition think of
ordering around a private funding? Is s/he thinking of exercising a
forced planning economic system? How diktat could s/he in case they come
to power?
Let me remind
him/her that we are practicing the market economy, whereby the state has
no say in the private money. As a Cambodian I am quite shameful that
they are so naïve. If they go on applying policy that is opposite to the
Government’s, they will surely be in a situation n of a suicide. I have
the duty to explain to our people on this issue or our people may
misunderstand it and doubt why the state does not use the money for
other infrastructural developments?
What Have Been
Done for Traffic Congestion Relief
In the last few
years we have been trying to work out solutions for relieving traffic
congestion for Phnom Penh and the traffic to and fro. What have we done?
We have expanded Phnom Penh access to the southwestern part of Phnom
Penh by the newly constructed bridge at Prek Jrei and the enlargement of
the Storung Meanjei Bridge. Thanks to the achievements, travelers from
provinces of Kompot, Takeo, and a part of Kandal, no longer have to
traverse to Jak Ang Re, a detour to traffic congestion dues to small and
multi-destination road.
To another
direction, we have built in adjacent to the existing one a new Monivong
Bridge making them one way in and one way out. In addition to the
project, an overpass bridge has also been built. From there, on the
other side of the bridge to the east on national road 1 to Nak Loeung
ferry cross at the Mekong River, Japan has commissioned the second phase
of road construction. If the project is to proceed according to plan,
the construction will commence in 2011. Japan also is to build a bridge
at Nak Loeung as well. These will link together the corridor from east
to west together.
On another front we
have relieved traffics in Phnom Penh to the part of Sak Sampeo and on to
the national road 3 on its way to the province of Kompot that is
financed by the Republic of Korea. As for the northern part of Phnom
Penh, what have we done? First we must talk about the Kob Srov flood
barrier to Phnom Penh. The dam was in such a dilapidated condition in
2000 and was prone to being washed away, leaving Phnom Penh in peril to
flood pressure. We have reinforced it and made it into a road that link
the national road 4 to the Prek Phnov Bridge that we inaugurate today.
Now we put the
Bridge at Prek Phnov into use, while not long ago we have put the
bridges at Prek Kadam and Prek Tamak into use as well. Along with this
we also have built a completely new national road 8 towards the border
with Vietnam with a truncation to the district of Punnhea Krek of
Kompong Cham province. We also have plans to build in the near future a
new bridge at Jroi Jangva, the second Jroi Jangva Bridge, so as to
expand access in and out of Phnom Penh. Another bridge to be built is
the Takhmao Bridge across Tonle Bassac River with a stretch to national
road 1. All these have been done in anticipation for increasing number
of transport mean of all kinds.
Local Private Investment –
Necessary
Since 1987 I have
listed four areas of priorities – water (irrigation), road, electricity
and human resources. As of now I see that the prioritization I have made
will last for another 20 some years. We wish private sector involvement
in the four prioritized elements by it seems that frequently involvement
has been noted to be only in the field of roads and bridges.
However, LYP Group
has in fact involved in two major projects already. We also have the
Chinese assistance in building and operating the electric dams at
Kirirom I and the Kirirom II is under construction, the hydropower
stations at Komjai and along the Pursat River. By 2013, we will have
better capacity in supplying electricity to a level that is close to
sufficiency.
Also in the area of
producing electricity, Oknha Ly Yong Phat and Okhna Kog An have invested
in electric plants that is 30 and
33 million USD respectively.
Thank to these investments and others from foreign companies, we are
able to take demand for electric supply from one dimension to another.
As for human
resources development, private sector has also involved in a more
sophisticated and professional manner in setting up tertiary educational
foundations for training of human resources. What is more important here
is what has actually motivated the private sector to make such a long
term investment?
Peace and Stability – Main Inspiring
Factors
First of all we
must look into the factors of peace and stability. Without the two, it
is improbable that these investors, Ly Yong Phat, Kog An, Mong Rithy,
Kong Triv, etc. would not pool their money in these projects at all. It
is their confidence that (Cambodia) has political stability that they
made long-term investment decisions. In other word, because they made
such important decisions for long term investment, these investors have
become enemy of the opposition parties. They have already said that so
and so Oknha is a bourgeois and has done so and so exploitation.
Having said that
they could be understood to infer that Oknha (noble citizen contributes
private resources for national development or course) is their enemy. It
could be the same old way that Pol Pot treated our people before. They
pursue equality status whereby those rich who are rich would have to be
made equally poor as the rest. As for us, we are depending on the rich
to engine of economic growth or locomotive of other wagons to chuck
along.
Like local
investment, foreign investment also depends on the fact of peace and
political stability in the country before they make such decision. Take
for instance Japan is providing assistance because Japan is sure that
whatever Japan gives is not to be destroyed for conflict or war reason.
I may have your attention here that years ago, Japanese tourist traveled
only to Siem Reap city and Phnom Penh. Now they are traversing
throughout Cambodia and there has never have a reason for Japan to issue
warning for their citizens from coming to certain places in Cambodia at
all.
Favorable Investment Law
If we were to talk
within the framework of investment, we have developed and implemented
one of the most favorable investment laws, whereby investors inside and
outside the country could do business in no prejudice. According to the
law, it is not required for the state or local or foreign companies to
secure so and so percentage of shares at all. They are equally entitled
to 100% investment share.
As you can see here
the state has not got even a single percentage of shares as it is 100%
private investment. I would like to take this opportune moment to
express my sincere appreciation to related institutions especially the
local authorities of the Municipal of Phnom Penh and the province of
Kandal, now this part of Kandal has been separated and become a part of
Phnom Penh already, for their efforts to facilitate smooth procedure of
the project implementation.
The other day,
while standing and looking on this bridge, I said to Ly Yong Phat to
consider building a satellite city. Now he has started his initial
project of building a golf course, a Safari world and travelers
terminals. Later project will consist of building apartments, by which
the plan to make it a satellite city will be complete.
Unlike Former
Rich/Powerful People, Okhna Invests in National Development
A private investor
could build a factory whereby hundreds or thousands of Cambodians could
find jobs, from construction phase to operation one. So if we do not
have rich people who would do such investment, where could we find job?
Shall we be poor together again like under Pol Pot? At some point in
time, some rich people or powerful person in Cambodia sent money abroad,
for instance Lon Nol (President of the Republic Khmer) sent some thirty
million USD to the US. I am asking the National Bank of Cambodia to
search for fact for me because I am going to leave for the United States
soon.
I would bring the
issue up with the United States about the debts that Cambodia owes them
in the period between 1970 and 1975. I would suggest that they consider
those bad debts, which instead of requiring a repay, they abolish them.
Take one small fact as example, the money was issued to come to
Cambodia, but they had actually gone to South Korea and Vietnam, for
instance. How could this sort of bad debts be repaid? However, I also
thank the US for returning the money that Lon Nol took along with him.
In Siem Reap city
there have some one hundred hotels of which only about twenty percent
are foreign investment and owned. The rest is local investment and some
opposition party members also have their hotels there. If they say those
who build the hotels are corrupted, what can they themselves be then
when they also have money to build hotels?
As for Ly Yong Phat,
if I am not mistaken, his investment in Cambodia has been registered to
be some two or three hundred thousand USD. He could as well keep his
money in the Bank and live on interest without having to manage it. It
is because his sense of patriotism, like others, he uses the money to
make investments.
The other day I
mentioned about Oknha Pong Khieu Se’s project to build a 555 meter
building, or about 90 floors. From the said-to-be building, one can look
on to Ton Le Sap and this bridge./.
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