Friday, March 04, 2011

Korean firm defies norms in Cambodia airport building [-The Koreans are delusional?]

NSRIA CEO Lee Tae-hwan speaks of his new approach to building a large international airport in Cambodia during an interview at his office in southern Seoul, Thursday. / Korea Times Photo by Shim Hyun-chul
03-04-2011
By Oh Young-jin
The Korea Times
First, he mentioned the efficiency and professionalism of the Cambodian public servants. “We deal with Ph.D. holders who studied in the U.S., Russia and European countries,” Lee said.

Secondly, Cambodia proves to be neither a banana republic nor led by a tinpot dictator. “It is a country that has a strong tradition of adhering to a contract perhaps resulting from the influence of the French,” the CEO said.
Building an international airport in a third-world country is a challenging task.

It requires dealing with a mercurial government, acquiring enough land and raising financial support.

There is too much uncertainty for any firm to take on without hesitation.

In this sense, the NSRIA or New Siem Reap International Airport Co, led by two Korean firms ― Lees A&A and its financial partner Cambodia Airport Co. ― is engaged in what others might call a mission impossible.

But when one listens to its CEO Lee Tae-hwan talk about the project, one can appreciate how the difficult feat could be translated into reality. As with any business, however, there is no 100 percent guarantee.

The project is constructing a new international airport 40 kilometers east of Angkor Wat, the UNESCO-designated world cultural heritage site, at the cost of $500 million. It is composed of one runway and a terminal on the site as large as 5 square kilometers, with the capability to handle 3 million passengers a year.

According to Lee, the new airport is expected to go into operation in late 2015 with the old adjacent airport to be closed, so there will be no competition from it.

The airport currently serving the Cambodian capital of Phnom Penh is not big enough. The runway of the new airport will be the only one in Cambodia to accommodate Boeing 747 Jumbo jets, making the airport the country’s first and only gateway to the world.

“We have just been notified that the Cambodian government is launching a government-wide steering committee,” Lee told The Korea Times during an interview at his office in southern Seoul Thursday, explaining that it will serve as an additional commitment from the government to the new Angkor International Airport. Lee heads to Cambodia next week.

An interesting element is Lee’s approach to the project ― charting a reverse course.

Usually for projects of this scale one finds investors and uses their money to gain the government’s permission and buy the land.

Instead Lee, a former executive of big Korean construction firms, first tackled the network he established through his years of experience in Indochina to first get government approval and obtain the site. About one fifth of the projected costs, or $20 million, has been self-financed in the process.

“If we had raised investment first without permission and land, it could have caused delays and related cost overruns,” Lee said. “Now, we have cleared much of the uncertainty and are set to go.”

He said that at this stage his firm is attracting investors, both domestically and overseas, for construction to begin late this year.

“We are talking with multiple potential investors including investment banks,” Lee said, adding that ongoing negotiations prevent him from mentioning who they are.

When asked about the business viability of the airport, he was reassuring.

“Already, as soon as we open, we will absorb about 2 million passengers from the existing airport that will be closed,” Lee said. “About 18 international airlines including European ones, that can’t gain direct access to Cambodia due to the lack of a big airport, have already applied for use of the new airport.”

He was also positive about the build-operate-transfer (BOT) of the project that is usually a length process to retrieve initial investments and gain profits.

“The period we can be in control is set at 65 years but can be extended,” he said, believing that, when considering that the new airport will serve as Cambodia’s only major international airport for a significant period of time, profitable years will follow shortly thereafter.

He also pointed out three additional things that are working in their favor.

First, he mentioned the efficiency and professionalism of the Cambodian public servants. “We deal with Ph.D. holders who studied in the U.S., Russia and European countries,” Lee said.

Secondly, Cambodia proves to be neither a banana republic nor led by a tinpot dictator. “It is a country that has a strong tradition of adhering to a contract perhaps resulting from the influence of the French,” the CEO said.

Thirdly, the location of the airport is close enough to easily access Angkor Wat but is at a sufficient distance away from it so as to protect its historical integrity. “UNESCO has cleared the site,” he said with a smile that should be expected on a man who has an unbeatable hand.

27 comments:

Anonymous said...

Thank you for saying that! country is a shit hole,

Anonymous said...

i admire CEO lee tae-hwan's philosophical thought and consideration on this much needed airport construction project in siem reap, cambodia. it will be a good business to invest in cambodia in the long-term because cambodia now has no large airport that can handle direct, long haul flights of 747 jets, etc. cambodia needs and can use airport with runway at leat 3500 meters in length by 45 meters in width in our country. the present airports in cambodia now are too small by international standard, etc, although upgraded to modern facility, still lack in sizes, etc. so, thank you this korea firms to invest in bot to build a large airfield in cambodia like this. god bless cambodia and korea company on this project.

Anonymous said...

It would be nice if they can rebuild Phnom Penh International airport, this is good moved, and get rid of corrupted officials there, relpacing all workers with korean national...I wish this thing will come true!! As long as khmer still incharge the airport, the corruption still exist!!

Anonymous said...

I would like to see Korean People incharge of Phnom Penh airport, this way will clean up those corrupted officials at the airport!

Anonymous said...

next, after this airport project, rich nations should look into investing in the railway system in cambodia, that's another area of lucrative, much needed form of transportation in cambodia in the future as well. also, look into investment in the long-term in electricity and other utilities in cambodia. also, invest in cambodia's postal system as well. cambodia lacks so much, so with big investments will help the country to grow economically, thus raise the higher standard of living, etc... god bless cambodia.

Anonymous said...

PM Hun Sen should agree and allow Korean national incharging our International airport, i think Korean will improve our airport systems...and of course, cleanin up corrupted officials there for good!!

Anonymous said...

Asking $20 dollars for drinking coffee...every fucken time i was there?

Anonymous said...

i, too, chose to see situation in cambodia as glass half full(optimism), not glass half empty(pessimism)! congrats to korea firms for taking a major step in helping to make a real, lasting difference in cambodia. god bless cambodia and korea.

Anonymous said...

they should also build a nice, landing pier off the coast of tonle sap lake near siem reap for boats travel to and from all over cambodia.

Anonymous said...

OH Nooo please don't build a big airport like that. it's make Thailand get jealous at Cambodian again because that airport will break Lung Panny air port in Bangkok record .Thai don't want Khmer have anything bigger then them, You know that...Thai going to bring their armies to the airport just like in Preash Vihear...ha ha ha....

Anonymous said...

HEY! Mr. Korean, just for use information!

USA use PhD only in resaech and keep library clean!!!!!

Do not bullshit Hun Xen! In Western country they respect education but they not accept decree like you and those fools!

To work ask professional in the west they accept BS, MS, PhD ans the same and you need to pass LICENT Exame even you ar MD, JD. and so on!

Stop fools yourselves leurn to read stupid!

Anonymous said...

Well, how does all rich countries started their nation building??

Are they rich from the beginning? I don't think so!

Of course every countries started from scratch.

Khmer Siem Reap

Anonymous said...

3:03AM! long long time ago before your great great grand grand father was borned. They robed each other for living!!!!!!!

Those now rich counties was grand son of the robbers.

BUT that is, was all history!

NOW IS A NEW WORLD ORDER!

Anonymous said...

I have travel couple time through Seoul, Korea(Korean-Air), they got very nice airport Terminal..Korea, Singapore, Thailand all are very high tech! I would like to see Korean National incharge our International airport, this will make our airport become better or more modern...to keep bringing tourists all over the world to CAMBODIA! Phnom Penh airport still got alot of work to be done...

Anonymous said...

I wish they caught or punish those people who bribe the corrupted officials at the airport, people keep put money inside their passport, handed to those officials for porcessing...I saw them doing this shit every fucken time!

Anonymous said...

correction=processing

Anonymous said...

Cambodia ahould ask China to build a new airport instead..

Anonymous said...

Cambodia should asking China to build a new international airport, cuz China got lots of money...

Anonymous said...

Phnom Penh airport very small, it can only landing small plane once at the time...

Anonymous said...

Clear out or cleaning out all people living in Boeung Tonle Sap Lake, they polluted, contaminated waters with gasoline, engine oil, engine grease, toxi chemicals they used, leaking into the lake every day...I hope they move people out!!!!Tourists can visiting the lake, if we can make cleans for site seeing...

Anonymous said...

correction=sight seeing..

Anonymous said...

All fishes people eating from the Tonle Sap Lake are full of vietnamese poops! How long these illegally people been shit in the Lake?

Anonymous said...

cambodia is hungry for bigger international airports, etc. yes, we can use bigger, modern airports, etc... stop being dependent of siem's airport in bangcock for stopover or flights to cambodia. why not fly directly into cambodia; it would save on airport taxes, ticket price, etc, you know! can't wait for korea to finish building the bigger airport in siem reap and even phnom penh as well. god bless cambodia.

Anonymous said...

cambodia should start dreaming big as in bigger airports, bigger roads, taller skyscrapers, etc, etc..., really!

Anonymous said...

Wad da fuck is wrong wid u ppl? When foreigners talk good bot our ppl, u fucken criticized them! When they talking shits bot us, u fucken say that they're looking down on us Khmer!!!

PS: I'm sorry for those positive comments!

Anonymous said...

cambodia needs bigger airports for sure! also more modern infrastructure, too!

Anonymous said...

Where are we going to get the money! most peopele make 30 a month