Cash dries up for tourism development in Asia [-Did the Russians developpers lie to Hun Sen about development on schedule?]

January 28 2009
Financial Times (UK)

The bridge linking Koh Puos island to the Cambodian mainland is under construction, but the timetable for building a yacht club, shopping centres, villas and hotels is under review as global credit markets dry up and international travel slows.

"We had hoped to finish everything by 2016, but we are probably now thinking more in terms of 2019 or 2020," says Oleg Khaidarov, construction director for the $900m (€682m, £635m) project intended to challenge established Thai beach resorts and make Cambodia a draw for more than the Angkor Wat ruins.

In a best-case scenario, executives such as Mr Khaidarov say projects will benefit from lower construction costs. But for tourism developments in Vietnam, Macao and elsewhere in Asia in early financing stages, the outlook is gloomier.

"Some big funds were very interested in our project but now everybody just wants to keep their money safe," says Kieu Lam, an official with Saigon SunBay, a Vietnamese seaside tourism development expected to cost $525m, of which only $25m has been committed.

In the absence of private funding, the Asian tourism sector is hoping to secure more government support.

Concerns linger as Russian island development begins

Artist rendering of the development on Koh Puos Island (Drawing by KPIG)

Monday, 09 June 2008
Neth Pheaktra
The Mekong Times

A Russian company held a ground-breaking ceremony Saturday for a US$300 million island resort project off Cambodia’s southwest coast, despite one of its partners now being in jail for sex crimes. Political opposition has alleged that the government was involved in “serious corruption” during the bidding process of the island purchase.

Prime Minister Hun Sen presided over the ceremony marking the start of work on a 900 meter bridge that will link Koh Puos (Snake Island) with a coastal beach in Sihanoukville. Koh Puos Investment Group (KPIG) has a contract to develop and manage resorts on the island for 99 years.

At the ceremony, Prime Minister Hun Sen said he considered Sihanoukville a “multi-pole economy including tourism, ports and Special Economic Zones.” The premier called the area the “dragon’s head” of Cambodia’s economic growth, inviting other investors to develop Cambodian islands.

Sun Chanthol, minister of public works and transport, said the Koh Puos Bridge – built 32 meters above the ocean to allow cargo ships to pass underneath – will “play a key role in the transport system linking Sihanoukville and other areas to Koh Puos, serving the tourism sector and increasing jobs.”

The bridge will cost about US$31.3 million and be completed at the end of 2010, he added, saying it will help develop Koh Puos “into a world-class resort.”

Chepa Alexey, president of KPIG, said 20,000-25,000 jobs would be created by the project.

However, dark rumors surround KPIG, run by a group of Russian businessmen, according to its website.

One of the group’s partners, Alexander Trofimov, was sentenced in March by a Cambodian court to 13 years in prison on charges of sexually abusing a 14-year-old girl.

Trofimov was arrested last October over allegations that he had abused as many as 19 girls since 2005, but was charged only in the case of the 14-year-old. He has protested his innocence.

Opposition Sam Rainsy Party parliamentarian Son Chhay alleged that island developments have been granted to firms with no experience or resources for development through non-transparent bidding. He requested the government should require development plans before granting permission to any firm to invest.

However, Deputy Prime Minister Sok An rebutted Son Chhay’s allegations in a lengthy letter. “A case of lease is different from that of sale,” he wrote. “Usually, leasing does not involve bidding. It is necessary to carefully select investors, because some islands are located near borders.”

Prime Minister Hun Sen stressed at the groundbreaking ceremony that Cambodia does not sell islands, echoing Sok An’s clarification of the difference between sale and lease. “Cambodia does not sell islands but allows investment concession like in other countries … such as for islands in Thailand and Malaysia,” he said.

Son Chhay was unconvinced, alleging that the leasing process was also dubious. “The clarification is clearly indicative of serious corruption in leasing the islands to foreigners,” he said. “We are still concerned about investment in islands if there is no clear information about the [development] plans and no environmental impact assessment.”

Controversial Russian company starts developing resort on Cambodian island

Alexander Trofimov behind bar (Photo: AP)

Saturday, June 7, 2008
The Associated Press

SIHANOUKVILLE, Cambodia: A Russian company broke ground Saturday on a US$472 million island resort project along Cambodia's southwest coast, despite one of its partners being jailed in the country for alleged sex crimes.

Prime Minister Hun Sen presided over a ceremony marking the start of work on a 2,970-foot (900-meter) bridge that will link Koh Puos — Snake Island — with a coastal beach in the port city of Sihanoukville.

Cambodia's government signed a deal with Koh Puos Investment Group Ltd. in 2006 that allows it to develop and manage resorts on the island for 99 years.

The company is run by a group of Russian businessmen, according to its Web site.

Alexey Chepa, an executive with the company, said at the groundbreaking ceremony that the total project represented a US$472 million investment, a substantial increase from the US$300 million originally announced in 2006. He did not give details of the project but said the investment would create up to 25,000 jobs.

One of the group's partners, Alexander Trofimov, was sentenced in March by a Cambodian court to 13 years in prison on charges of sexually abusing a 14-year-old girl.

Trofimov was arrested last October over allegations that he had abused as many as 19 girls since 2005, but was charged only in the case of the 14-year-old. He has denied the accusation.

Cambodian Transport Minister Sun Chanthol said the bridge will cost about US$31.3 million and be completed at the end of 2010.

He said it will help develop Koh Puos "into a world-class resort."

Son Chhay, an opposition lawmaker, criticized the government for pressing ahead with the project instead of taking time to investigate the company's background after one of its partners was jailed.

"The government must be more open on how they struck the deal with the Russians," said Son Chhay, of the opposition Sam Rainsy Party.

The new resort is part of impoverished Cambodia's efforts to promote the country's beaches as a new tourist destination and a key source of cash, following the success it has had in drawing visitors to its famed Angkor temples.

Sihanoukville is about 115 miles (185 kilometers) southwest of the capital, Phnom Penh.

Russian company builds bridge for Cambodian island resort

SIHANOUKVILLE, Cambodia, June 7 (Xinhua) -- The Koh Puos Cambodia Investment Group, a branch of Vironia Enterprises Limited from Russia, has invested 20 million euro (about 31.5 million U.S. dollars) to build a 900-meter bridge from the beach of Sihanoukville to Koh Puos (Snake) Island Resort, officials said here on Saturday.

This concrete bridge is one of the main development projects of Koh Puos Island Resort of the Sihanoukville city, Sun Chanthol, Cambodian Minister of Public Works and Transportation, said at the bridge groundbreaking ceremony.

The construction of the bridge will be finished by construction contractor Sinohydro of China in late 2010, he said.

The bridge will be built 32 meters over the sea level which could allow the container cargo ships to transport in and out of the sea port, he said, adding that the bridge will play a key role in connecting with other islands.

The developers have invested 300 million euro (about 472.7 million U.S. dollars) in the Koh Puos (Snake) Island to develop it into an international standard resort with hotels, trade center, accommodation and tourism center, he added.

The development of Koh Puos Island will contribute to economic growth and provide job opportunities for local people, Cambodian Prime Minister Hun Sen said at ceremony.

"We also welcome more investors from Russia and other countries to develop our islands in the sea for economic development," he added.

Tycoon Gets 13 Years on Debauchery

Alexander Trofimov a Russian national sits outside a courtroom in Phnom Penh, Cambodia, Friday, March 14, 2008. A Cambodian court sentenced Trofimov to 13 years in jail Friday for sexually abusing an under-aged girl, making him the second foreigner convicted of such a crime this week. (AP Photo)

By Chun Sakada, VOA Khmer
Original report from Phnom Penh
14 March 2008

Russian investor Alexander Trofimov was handed a 13-year jail sentence Friday on a conviction of abusing a 14-year-old girl in the beach resort town of Sihanoukville.

Trofimov, 41, had been an influential investor on the coast and was leading a $300-million development on Snake Island until his arrest in October 2007.

Phnom Penh Municipal Court ruled Friday on a case heard earlier this week, finding Trofimov guilty of debauchery, in one of several cases Trofimov now faces for sex acts with young girls.

Cambodian Phal Vannara received an 11-year jail term for his role in procuring the girl for Trofimov.

"There is enough evidence to prove his guilt," said Municipal Judge Ke Sokhan, who presided over a three-judge panel in the case.

The crime affected the security, culture, dignity, honor and health of humankind, Ke Sokhan said.

"I'm very happy for the municipal verdict," said the victim, who had requested that her hearing be made public.

The court, which has mandated one month for appeal, ordered the two to pay $100,000 in compensation to the victim.

"The court decision is unjust for my client, because there is not enough evidence against him," said Ouch Sophal, Trofimov's lawyer. "I still defend my client; he is not guilty at all."

Russian investor gets 13 yrs for Cambodia abuse

Alexander Trofimov (L) is escorted by Prey Sar prison's police after his hearing at Phnom Penh municipal court March 11, 20008. The court charged Trofimov, a Russian businessman who is overseeing a $300 million tourism investment project with sexual abuse of a 14-year-old girl. Trofimov denied the charge and said he had never met the girl, who testified that she had been paid $100 after being abused four times. (REUTERS/Stringer)

March 13, 2008

PHNOM PENH (Reuters) - A Cambodian court sentenced a prominent Russian investor to 13 years in jail on Friday for the sexual abuse of a 14-year-old girl, the latest foreigner to be caught in the country's drive to stop child sex tourism.

The lawyer for 41-year-old Alexander Trofimov, who signed a $300 million deal in 2006 to develop a luxury tourist resort, said the ruling would damage Cambodia's investment reputation.

"My client is a high-profile man. He should not be sentenced by just one girl who pointed a finger at him," lawyer Ouch Sophal told Reuters.

"The court decision will send a bad message to foreign investors," he said, adding his client would appeal.

Chief Judge Ke Sakhan said the court had sufficient evidence to convict Trofimov, who did not speak to reporters in court.

A Cambodian man was also sentenced to 11 years in jail for providing the girl to the Russian businessman.

Poverty-stricken Cambodia has long had a reputation as a haven for pedophiles, due in large part to its corrupt police force and courts. Child rights groups are campaigning hard for Phnom Penh to take the problem seriously.

(Reporting by Ek Madra; Editing by Darren Schuettler and Alex Richardson)

Russian accused of abusing Cambodian girls awaits court’s verdict

March 14, 2008
Russia Today

A court in Cambodia is to pronounce its verdict in the case of a Russian businessman accused of sexually abusing a 14-year-old.

Aleksandr Trofimov was arrested last year on suspicion that he had abused as many as nineteen underage girls. The 41-year-old man denies the charges.

If convicted, he could face between ten and twenty years in prison.

Trofimov has been living in Cambodia for three years. His company received government permission to develop an island into a tourist resort.

Pedophile Case Opens Against Beach Tycoon

Alexander Trofimov (L) is escorted by Prey Sar prison's police after his hearing at Phnom Penh municipal court March 11, 20008. The court charged Trofimov, a Russian businessman who is overseeing a $300 million tourism investment project with sexual abuse of a 14-year-old girl. Trofimov denied the charge and said he had never met the girl, who testified that she had been paid $100 after being abused four times. REUTERS/Stringer

By Chun Sakada, VOA Khmer
Original report from Phnom Penh
11 March 2008

Phnom Penh Municipal Court said Tuesday it will rule Friday on whether Russian business tycoon Alexander Trofimov is guilty of debauchery, as one of Cambodia's widest-sweeping pedophile trials opened.

Trofimov, 41, denied one charge of debauchery in Phnom Penh court, where he is accused of paying for sexual acts with a 14-year-old girl. He faces similar accusations from a number of other alleged victims in Sihanoukville, where he was leading the $300-million development of Snake Island, off the southwest coast.

Trofimov said in a public hearing that lasted six hours that he was innocent of the debauchery charge, and he denied knowing the alleged victim or paying for sexual acts with her.

The girl told the court that Trofimov had four sexual encounters with her at his house in Sihanoukville.

Prosecutor Sok Kalyan said at the close of the hearing Trofimov was guilty and should pay $200,000 in compensation for the girl.

Trofimov's lawyer, Ouch Sophal, called for a re-investigation of the case, saying the evidence was not clear.

Cambodia's anti-trafficking law provides for 10 to 20 years in prison for debauchery charges.

Russian man denies child sex abuse charge during trial in Cambodia

Tuesday, March 11, 2008
The Associated Press

PHNOM PENH, Cambodia: A Russian businessman accused of sexually abusing a 14-year-old girl in Cambodia denied the charge Tuesday, despite the child's testimony that he paid her for sex last year.

Alexander Trofimov, 41, is accused of debauchery. If convicted of the child sex offense, Trofimov could face from 10 to 20 years in prison.

Police arrested Trofimov in the coastal city of Sihanoukville in October on suspicion he had sexually abused up to 19 Cambodian girls since 2005. Tuesday's trial, held in the capital, Phnom Penh, considered only one of those allegations.

Judge Ke Sakhan said he would announce a verdict Friday.

The teenage girl testified that she and Trofimov had sex in September last year. She said she received $100 out of $1,000 that Trofimov paid to a broker to bring the girl to him.

Trofimov, who has lived in Cambodia for more than three years, denied the charge.

"I have never seen her or committed any sex acts with her," Trofimov told the court. He urged the court to release him.

Phal Vannara, a 34-year-old Cambodian man, is charged with conspiracy in the sexual abuse for his alleged role as the broker. He is being tried alongside Trofimov.

Trofimov runs a company that in late 2006 received permission from the Cambodian government to develop Koh Puos, or Snake Island, into a tourist resort.

19 girls accuse Russian of abuse in Cambodia's biggest pedophilia case [-KPIG's Trofimov in deeper trouble]

Friday, November 16, 2007
The Associated Press

PHNOM PENH, Cambodia: Nineteen girls have claimed they were sexually abused by a Russian businessman who was arrested in Cambodia last month — the largest number of Cambodian children to allege abuse by one person in a pedophilia case, police said.

Alexander Trofimov, 41, the chairman of Koh Puos Investment Group Ltd., was detained in the southern resort town of Sihanoukville and accused of raping at least six girls. He was charged Oct. 17 with debauchery — a Cambodian legal term for sexual abuse of children.

Investigations since his arrest indicate he may have abused as many as 19 girls, said police Maj. Gen. Bit Kimhong.

"This is a first," Bit Kimhong said, noting that most pedophile cases in Cambodia involve the abuse of up to three victims. "Never has there ever been anything like this."

The victims are now aged between 11 and 18 but were younger at the time of the alleged abuse, said Samleang Seila, director of child advocacy group Action Pour Les Enfants, which has been investigating Trofimov since 2005. It was not immediately clear if all the girls were under 15 — the age of consent — when the alleged abuse occurred.

If convicted of debauchery, Trofimov could be sentenced to up to 20 years in prison for each offense.

Three Cambodians were also arrested and charged with conspiring to commit debauchery and trafficking girls for the Russian, said Bit Khimong, who is head of the Interior Ministry's anti-human trafficking department. Trafficking of girls under 15 for sexual purposes is punishable by up to 20 years in prison.

At least two of the alleged victims were sold to the Russian by their parents, said Samleang Seila.

Poverty and weak law enforcement make Cambodia a preferred destination for foreigners seeking to prey on children, although local police say they have stepped up efforts against pedophiles.

In September last year, the Cambodian government gave Trofimov's company permission to develop an island near Sihanoukville into a tourist resort with an initial investment of up to US$300 million.

Koh Puos, or Snake Island, is located about 800 meters (a half-mile) off Sihanoukville, which is about 185 kilometers (115 miles) southwest of Phnom Penh.

AltMapCambodia reveals Koh Puos Investment Group (KPIG) Documents

Photos from KPIG’s Proposal

Click here to download all the conceptual drawings for Koh Puos Development
(Note: This is a large PDF file with multiple drawings)

Rumors have swirled around KPIG’s activities in Sihanoukville, and it is thought by many that KPIG’s $300 million Snake Island development would serve as a front for Russian money laundering. The arrest of the Chairman, Russian businessman Alexander Trofimov, who was charged with debauchery for sex with fourteen year old girl, may mean the end of KPIG in Cambodia. AltMapCambodia has obtained original documents from KPIG's proposals.

Click the following links for the document in Khmer:

Investment and feasibility studies Part One
Investment and feasibility studies Part Two

KPIG chairman accused of underage sex

Trofimov's arrest (Photo: AP)

Russian investor accused of underage sex

By Kang Chan Amrak and Tracey Shelton
Phnom Penh Post, Issue 16 / 21, October 19 - November 1, 2007

A Russian businessman who has plans to develop an island off the coast of Sihanoukville was arrested at his home and charged with debauchery following a three month investigation into a complaint by the parents of a 14-year-old Cambodian girl.

Alexander Trofimov was apprehended at 10 am October 17 in his Sihanoukville home on a warrant from October 16 following complaints from the girl's family who claimed she had been sold to Trofimov by a middleman.

Trofimov, 41, arrived for questioning at the Phnom Penh Municipal Court on Thursday morning. The court prosecutor said he had been charged with debauchery, the legal term in Cambodia for sex crimes with a minor.

"With the evidence that we gathered from our investigation we believe that it will be enough to convict him and bring him to justice," said Bith Kim Hong, chief of anti-trafficking department of the Ministry of Interior, who investigated the case.

Hong said the family of the girl filed a complaint to the courts because their daughter was sold to Trofimov in 2005 by 34-year-old Phal Vannara. Vannara was arrested on September 3. He is in jail.

The girl had been tricked by Vannara, Hong said. She escaped from Trofimov's home and went to police.

No further details were available.

Investigation into this and six other cases by the anti-trafficking department and International Justice Missions (IJM) began in July, Hong said.

He said his department is currently filing a new complaint with a Sihanoukville court regarding an offense, which he said took place a few weeks ago. The new case involves a 13-year-old Sihanoukville girl.

The five other alleged victims are also from Sihanoukville. Complaints have not yet been filed in those cases.

IJM's field office director Patrick Stayton had no comment on whether or not further charges would be made, saying those decisions will be made by the courts.

Trofimov, who has had no previous charges for sex offences, was escorted from the court room and taken to Prey Sar Prison. He had no comment.

He is chairman of the Koh Puos Investment Group (KPIG).

Trofimov in September 2006 announced plans to invest $300 million into the development of Sihanoukville's Koh Puos or Snake Island, following the signing of the lease agreement last year. The plans included the construction of a luxury hotel and restaurant, bungalows, parks and a bridge connecting the island to Hawaii beach.

Farewell to Koh Puos (Snake Island) development after Trofimov's arrest?

Charges brought against Russian businessman in Cambodia

MOSCOW, October 18 (RIA Novosti) - The Russian Foreign Ministry said in a statement on Thursday that charges have been brought against Russian businessman Alexander Trofimov, accused of the sexual abuse of underage girls in Cambodia.

Trofimov, 41, was arrested in his house in the popular Cambodian resort of Sihanoukville, late on Wednesday, after the parents of seven alleged victims, some as young as 12, filed complaints against him.

Police say Trofimov, who is the chief of the Cambodia-based Koh Pos Investment Group, had sex with two girls in 2005, and with another five this year. The oldest of them is said to be 14-years old.

Local police are currently questioning the suspect, who denies all charges. The Russian embassy in Cambodia is monitoring the situation.

At present, Trofimov is being kept in a remand cell in Phnom Penh. If found guilty, he could face up to 20 years behind bars.