Wholesale 99-year lease of Koh Rong to Kith Meng, one of Hun Xen's cronies

Hun Xen's crony Kith Meng

Environmental Survey To Prepare Cambodia's ‘Koh Rong' Island For High-End Tourism

PRESS RELEASE

(Bangkok - March 25, 2010) - Global integrated design and engineering consultancy firm Scott Wilson Group plc. has been appointed by The Royal Group of Cambodia to conduct an Environmental Evaluation and Social Impact Analysis of the Cambodian island of Koh Rong, laying the groundwork for Asia's first environmentally planned resort island.

In addition Scott Wilson has been appointed to develop the infrastructure on Koh Rong including road network, marina, international airport and utility services to jump start tourist development which places the beaches of Koh Rong within a travel time of 3 hours from Hong Kong and Singapore.

With over 80 offices worldwide, Scott Wilson offers strategic consultancy and multi-disciplinary professional services in buildings & infrastructure, environment & natural resources and roads sectors.

Koh Rong developer, The Royal Group, is headed by Chairman Kith Meng, one of Cambodia's most prominent tycoons, with interests extending to Cambodia's railways and ANZ Bank in Cambodia.

The Koh Rong archipelago, 30 minutes by boat from the coastal town of Sihanoukville, is being billed as the "next Asian Riviera" - following Phuket, Koh Samui and Bali.

Koh Rong covers 80 sq. kms, with a population of just 1,500 in small fishing villages. The island is known amongst off-the-beaten-track travelers for its pure white sand beaches and crystal clear waters and remains virtually untouched.

The Royal Group, one of Cambodia's most dynamic and diversified business conglomerate with substantial interests in property and infrastructure development, has been granted a 99-year lease by the Cambodian government to develop Koh Rong as the "first environmentally planned resort island in Asia".

The Royal Group is committed to sustainable development of Koh Rong, ensuring that the impacts on the environment are minimized and positive environmental benefits are realized throughout the development phases of the island. Most importantly the development objectives are that Koh Rong must stay a ‘Paradise Forever'.

The study will identify environmentally sensitive areas and draw recommendations for developing the pristine Cambodian island of Koh Rong for international tourism and real estate development. The study will be followed by detailed Environmental Impact Studies for the unique marine resources (Coral Reefs, Mangroves, Fisheries) as well as the island's flora and fauna. A crucial element of this will be monitoring developments and their impacts on the environment and local communities. Re-forestation, marine resource protection, waste management, poverty alleviation and employment creation for the local community are key elements of the development program.

Heading the social impact studies and infrastructure planning and development for Scott Wilson is Lauri Van Run, General Manager of the leading global design and engineering consultancy's Malaysia office. Lauri has been working with Scott Wilson since 1991 and has over 20 years experience as project manager of large infrastructure development projects, particularly in the planning, design and construction of multidisciplinary projects such as airports. Prior to joining Scott Wilson Lauri spent five years with the United Nations.

"The master plan for Koh Rong presents perhaps a unique opportunity to create virtually from the beginning a truly ecologically sustainable large scale resort community," said Mr. Van Run.

Development of the pristine "eco-island" is being carefully planned to foster the natural environment and local communities while creating a "high-end" resort destination. A development plan that realises best real estate value in balance with environmental protection - one that results in minimum environmental and social impact is currently being developed by Scott Wilson together with Hong Kong-based MAP Architects.

Opportunities for local villagers including agricultural initiatives such as organic farming, waste management, environmental awareness, improved education and medical care for the community and a future hotel management school are high on the list of priorities. It is important to provide the local community with the opportunity for employment, skills training and improvement of their livelihoods. Initial consultations have been held with chiefs and village leaders.

Along with top-end resorts, two golf courses are planned.

Mr. Van Run said: "Koh Rong is an un-spoilt paradise of pristine beaches and spectacular natural forests. It offers a unique opportunity to create the ultimate ecologically managed island, with ecologically sustainable resorts with sound investment potential."

"The Koh Rong story is similar to that of Samui and Phuket 30 years ago," said Mr. David Simister, Chairman of CBRE Thailand, the exclusive advisor and sole agent for developing the island. "It is one of the last undiscovered paradises in South-East Asia with the potential to become the next Asian Riviera."

The new airport on will be the principal gateway to Cambodia's ‘Next Asian Riviera' and a critical catalyst for the island' development," he said.