Showing posts with label Island concessions. Show all posts
Showing posts with label Island concessions. Show all posts

Tuesday, August 17, 2010

Investment on Islands in the Cambodian Sea are full of Secrets and Corruption

SRP MP Son Chhay
Development plan for Koh Puos Island (Phot: KPIG)

14 August 2010
Moneaksekar Khmer, Vol.17, #3957, 13.8.2010
The Mirror, Vol. 14, No. 677


“A high ranking official of the Sam Rainsy Party demanded the government to clarify the investments by private companies on some islands in the Cambodian sea. People want to know which companies control those islands and the leasing prices, and for how long. A request was made after the Cambodian government handed over some islands to local and foreign companies for investment, but the investment opportunities were not put up to facilitate accurate and transparent public biddings.

A Sam Rainsy Party parliamentarian, Mr. Son Chhay, said that it is illegal that the government delivered these islands to private companies, and the income from these investments is not inserted into the national budget. The investment or concession arrangements for those islands are confidential and corrupt. Mr. Son Chhay, said, ‘Where will the income from the islands be taken? As a parliamentarian, we have to observe and monitor the national income, after the government had issued sub-decrees to hand those islands over to companies, but we have not seen any documents about the amount of income from these leasings and concessions.’

“Mr. Son Chhay added that islands in the sea have as high a potential for the Cambodian economy as the beaches near Kep, Koh Kong, and Sihanoukville, because they attract national and international tourists. However, the government does not put them up for public bidding; this also affects the environment, and the background of the companies is not known. He said, ‘We have received information that several Khmer islands have been handed over by the government to powerful people or to relatives of government officials, and they then leased some islands to some foreign companies, exploiting for themselves the interests of the Khmer people.’

“In his response, a Cambodian People’s Party parliamentarian and chairperson of the Commission of Economy, Finance Banking, and Audit, Mr. Cheam Yeap, acknowledged that the government did not put the investment on those islands for public auction, because the government does not have detailed plans, to show them to the clients for bidding. Since the government was not able to create detailed plans, putting them for public bidding is impossible. This recognition by such a high ranking official from the Cambodian People’s Party shows that the investment or leasing of the islands to some companies is mysterious and can be plagued by corruption.

“Mr. Son Chhay stressed that he requested the government in writing since 2006 to clarify investments and leasing of islands to some companies without transparent public bidding, but he has not received any response from the government. Now, he is collecting documents to be used as evidence about the impact and the corruption, in order to submit them to the government and ask for clarification again. The intention is to summon ministers or other government representatives to clarify these investment on some islands that are being developed – their shares were sold in Hong Kong – in order to know whether such activity is legal or not, and whether it conforms with basic procedures. If there is no clarification, it can be concluded that what was done before was the illegal sale of some islands of the country.

“In July 2010, the Ministry of Tourism cooperated with UNESCO towards the registration of some beaches of Cambodia among the world most beautiful beaches [Reference not clear, maybe the UNESCO Environment and development in coastal regions and in small islands program, concerned with 'environmentally sustainable, socially equitable, culturally respectful and economically viable development']. It is expected that there will be strong support from national and international tourism. Also, the Minister of Tourism, Mr. Thong Khon, said that after Cambodian beaches will have been noted, the Ministry of Tourism is trying to make some Cambodian beaches to be fully listed among the world’s most beautiful beaches during the nomination next year.

“Nevertheless, non-government officials watching the environment in Cambodia noticed that some companies taking charge of island developments do not study the effects on the environment. Like on Puos Island, while there is yet no result from the developments by a Russian company, there is mysterious information and it might be related to corruption. Obviously, the Puos Island development plan has not been provided any benefit to the nation, besides environmental deterioration and impacts on the living conditions of citizens who used to do fishing near the island.

“According to expert officials, there are about 40 islands in the Khmer sea with investment potential where some have already been developed, while some others are being developed by companies such as Rong Island, P’Oun Island, Bang Island, and Puos Island. Recently, the Cambodian government provided licenses to private companies to invest on four more islands in Koh Kong, such as Sameth, Putsa, Chhan, and Toteung islands. Among those companies, there are also Yuon [Vietnamese] companies, and the development periods are up to 90 years. This might lead of the loss of Cambodian territory, as the Cambodian government does not present investment contract documents for those companies.

A non-government organization official in Kampot said that some years ago, a Yuon company, Try Pheap, developed Tonsay Island in Kep and evicted the Khmer citizens living there from that island. At present, that Yuon company has not continued its developments. After it obtained the license, it stopped its activities. Such a problem emerged, as previously the government did not conduct public biddings and did not set clear conditions publicly before offering a license to that private company. Therefore, from now on, the government must conduct public biddings before providing licenses to companies to develop and operate on islands in the Cambodian sea, in order to avoid secret and strongly corrupt practices as in the past.”

Friday, January 08, 2010

New Cambodian island resort launches

TravelDaily.co.uk

Phuket – January 7, 2010 – The launch of Song Saa Island Resort Cambodia just before Christmas received an unprecedented response, with over 60% of the units at this exclusive private island development booked during the launch. The launch event was held at the Catch Beach Club, Twinpalms Phuket on December 17th with a strong turn out of over 70 people.

Brocon Investment Co., Ltd., the developer selected Phuket for the launch on the advice of agents CB Richard Ellis as the ideal location to introduce Song Saa Island to potential resort buyers.

“We are extremely pleased with the immediate success we’ve had in bookings for this project. The Phuket market has clearly identified with the product. Despite being an emerging destination, Song Saa has attracted a global mix of investors, including Norwegian, French, Hong Kong Chinese, Hong Kong expatriate to British” said David Simister, Chairman, CB Richard Ellis Thailand. Within one week of sending out the launch invitation, the project has received substantial response and 8 bookings were made by the end of the event.

Song Saa Island Resort is located on Koh Ouen and Koh Bong in the Koh Rong archipelago, a 30 minute boat ride from the Cambodian resort town of Sihanoukville. The resort comprises a total of 14 one and two-bedroom residential villas, in a private island setting with a starting price of USD 200,000 and a 10% guaranteed yield for three years. Resort facilities include a five-star over-water restaurant and bar, swimming pool, spa & wellness centre, yoga & meditation centre and a beachside water sports centre. Construction of the resort will begin next month with expected completion in Q2 2011.

Song Saa’s success marks the beginning of the international development of the Cambodian coastline and is the first project to target foreign buyers. The project offers a 99-year leasehold tenure, the best available ownership structure for foreigners compared to other resort markets in the region. The success also proves that there is a market of international investors who are attracted by quality design and operators in an emerging location. Pioneering investors who have invested in this new frontier expect to be rewarded by the significant upside in capital appreciation.

The opening of Sihanoukville Airport will further push the development along the Cambodian coastline and surrounding islands. The airport construction is now complete and includes a runway expansion and terminal renovation. The airport is currently open for chartered flights and private jets. Flights from Phnom Penh and Siem Reap are expected to begin in the near future, with rumours of regional airlines also planning scheduled flights in 2010. The airport, once fully operational, will be the principal gateway to Cambodia’s southern coast and a critical catalyst for the area’s development. Transfer from the airport to Song Saa Island is approximately 30 minutes by boat.

There are currently a limited number of resort developments in Sihanoukville such as the Sokha Hotel and Koh Puos (Snake Island), off the southern coast. A number of international investors have purchased beachfront land in the area and it is expected that the official opening of the Sihanoukville Airport will increase development activity, particularly for four and five star hotels. Song Saa Island Resort is the first project to reach the market.

Song Saa Islands are nestled in the lee of Koh Rong, Cambodia’s most important resort island, pitched to be a future Phuket. The entire island is owned by one of Cambodia’s largest corporations, The Royal Group. Pre-development plans are now underway for the island and the aim is to position the island as Asia’s first environmentally planned island development. With an unparalleled quality of water, beach and the environment, the Koh Rong archipelago and the Cambodian coastline has the potential to become the next Asian Riviera, comparable to established markets such as Phuket, Samui and Bali.

“The launch of Song Saa Island Resort has certainly put Cambodia on the global map and has paved the way for future developments in the area. I believe the uniqueness of the product, the charm of the island and pricing have been the key factors for Song Saa’s success” said Rory Hunter, Chairman, Brocon Investment Co., Ltd.

Monday, September 22, 2008

There's more than casinos on Koh Kong

Monday September 22, 2008
ACHARA ASHAYAGACHAT
Bangkok Post

"Mr Thaksin has shown interest in leasing Koh Kong Khrao, an 80 sq km island off Koh Kong, to develop an entertainment complex..."
Thai tourists are being reminded that the Cambodian border province of Koh Kong offers much more than just the casinos for which it is famous.

Mayuda Mang, deputy chief of the Tourism Department of Koh Kong, said at the Greater Mekong Subregion (GMS) workshop on biodiversity conservation and tourism development in Bangkok that the 11,000 sq km province has a wide variety of tourist attractions.

"Koh Kong is home to the country's largest mangrove areas and we still have several small pristine islands eligible for ecotourism development," said Ms Mayuda.

She said that no matter how volatile relations between the two countries have been in recent months, Koh Kong and the opposite province of Trat have remained on good neighbourly terms.

Trat has sent experts to help Koh Kong villagers preserve mangrove forests, said Ms Mayuda, adding: "We appreciate that cooperation and would like to see deepened collaboration on nature conservation in our country."

However, she conceded that Road No 48, which was jointly opened by then-deputy prime minister Somchai Wongsawat and Cambodian Prime Minister Hun Sen, with a bridge linking the Thai border to Koh Kong and on to Phnom Penh, would inevitably attract all kinds of investors, traders and gamblers to Cambodia.

The Thai government gave financial support to build the road.

It takes about one hour to drive from Trat to Koh Kong and another three hours to go on to the capital Phnom Penh.

The owners of the casino projects are Thais and Cambodians and gamblers come not only from Thailand, but also from China and Taiwan, as well as a few locals.

Asked how much progress Thailand's former prime minister Thaksin Shinawatra had made in his reported investment in Koh Kong, Ms Mayuda said he had taken 10 interested parties to meet Hun Sen last April, but none of them, including Mr Thaksin, had yet confirmed they had initiated any projects.

"The picture will become clearer after Hun Sen's new government is up and running. Until that time, probably only two or three investors might seriously want to pursue business in Koh Kong," Ms Mayuda said.

Mr Thaksin has shown interest in leasing Koh Kong Khrao, an 80 sq km island off Koh Kong, to develop an entertainment complex, but she did not know how negotiations were progressing.

She also said that a South Korean company had been given a 99-year lease to develop hotel, entertainment and eco-tourism businesses on Koh Yo, another small island off Koh Kong.

And a Kuwaiti investor has pledged US$15 million (511 million baht) to help transform Cambodia into an agro-business hub.

Koh Kong's efforts to lure different kinds of tourists is part of Cambodia's wider strategy to develop the industry nationwide so that the impoverished country will not continue to rely on its top drawing card, Angkor Wat.

Anne-Maria Makela, senior tourism adviser for the Netherlands Development Organisation, said at the workshop that too much focus has been placed on Angkor Wat and Siem Reap, and the country should bring more communities into the tourism picture.