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Cambodia and Laos Infrastructure Report Q1 2014

Cambodia and Laos Infrastructure Market: New market research published

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2014-02-07 17:47:01 - Cambodia and Laos Infrastructure Report Q1 2014 - a new market research report on

We continue to hold the view that the stellar performance by Cambodia´s construction sector in 2012 (where construction real growth reached 16.3%) is not sustainable in 2013 and 2014. Even though we have seen in H113 the return of foreign investment and the increase in domestic project financing in Cambodia, several risks continue to dampen the near-term growth potential of the sector - namely greater policy uncertainty following the outcome of the July 2013 general elections - growing competition from Myanmar, limited upside to foreign investment and the resolution of land disputes in the favour of local residents.

Key developments in Cambodia´s infrastructure sector:

- In October 2013, the Cambodian government awarded ALEX Corporation a US$119mn 29-year concession to build and operate



power transmission lines between power plants in Preah Sihanouk province and Phnom Penh under a build-operate-transfer framework. The contract was awarded after the government approved the project following a feasibility study done by the China Heavy Machinery Company.

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