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A brand new analysis, which examined three main Chinese language funding tasks in Cambodia, discovered “important compliance gaps” in Accountable Enterprise Conduct (RBC) worldwide requirements inflicting extreme impacts on the atmosphere and group livelihoods though they adhered to minimal nationwide legal guidelines.
The preliminary findings from the tasks: Decrease Sesan 2 hydropower dam, Dara Sakor Particular Financial Zone (SEZ) and Funan Techo Canal had been introduced at a consultative workshop organized by the NGO Discussion board on Cambodia (NGOF) on July 24, 2026.
The workshop, accomplished in collaboration with Give to Nature and supported by Porticus, aimed to overview Environmental and Social Affect Evaluation (ESIA) methodologies and promote the event of an Environmental, Social, and Governance (ESG) tips guide for sustainable funding.
The analysis was carried out based mostly on RBC requirements, and nationwide authorized frameworks and worldwide requirements—Worldwide Monetary Company, UN Guiding Rules, and the OECD (Organisation for Financial Cooperation and Improvement).
Whereas most Chinese language funding tasks fulfilled Cambodia’s minimal authorized necessities, such because the Legislation on Funding, Land Legislation, and the Environmental Code, the analysis assessed utilizing RBC requirements confirmed “extreme shortcomings”.
Key deficiencies embody restricted public session, weak legislation enforcement mechanisms, and redress for grievances together with insufficient livelihood restoration methods for affected folks.
About 60 individuals participated within the workshop, together with representatives from authorities establishments, the non-public sector, civil society organizations, improvement companions, and affected communities.
China is Cambodia’s largest investor, buying and selling companion and donor, accounting for as much as 54% of funding capital in 2025, mentioned challenge researcher Sam Chanthy, noting {that a} surge in international funding was pushed by main tasks, such because the Dara Sakor SEZ and Funan Techo Canal.
On the nationwide stage, these mega tasks are seen as transformational forces reshaping Cambodia’s profile, performing as catalysts for financial improvement by energy technology, industrial zone improvement, transport infrastructure growth, and creation of jobs.
Nonetheless, the research documented rising pressure and detrimental impacts from the angle of native governance and precise residing situations of residents. The impacts had been divided into environmental and social impacts.
Nearly all environmental degradation started with deforestation, resulting in a lack of biodiversity. Main infrastructure constructing, such because the Decrease Sesan 2 dam and Funan Techo Canal, altered hydrological methods and water assets, disrupting complete ecosystems and lowering land productiveness.
Proof from consultations with authorities and communities revealed that the environmental points weren’t non permanent, however “persistent” issues that must be monitored all through the challenge lifecycle.
As for social impacts, resettlement was recognized as a long-term problem. The findings point out that the method of group displacement is managed primarily by a “top-down” method. Native actors and provincial authorities had been mentioned to have restricted decision-making affect, serving alongside native communities primarily as “mere implementers of relocation directives”.
In line with the report, the hydropower dam and Dara Sakor SEZ tasks concerned relocating a whole bunch of households to new websites located a number of kilometers away, whereas the Funan Techo Canal challenge concerned partial relocations.
Resettlement induced affected households to expertise rapid lack of entry to pure assets, severely impacting livelihood and elevated monetary burden.
The report famous that “a one-off compensation cost can’t substitute misplaced long-term survival capabilities”. Whereas authorities view bodily achievements positively, similar to new housing, roads, and electrical grids, many voters can’t restore their monetary stability with the lack of every day revenue supply from the river or sea.
Compensated, solely ‘reasonably happy’
The research used a mixed-method knowledge assortment method, surveying 237 households to analyse the influence and compensation. Moreover, 5 focus group discussions had been organized, and key informant interviews with 16 people on the native stage (commune chiefs, district governors, and provincial division representatives) and 5 people on the nationwide stage. Direct on-site observations of land use and environmental modifications had been additionally carried out in every location.
On the dam challenge in Stung Treng, challenge implementation required the resettlement of 1,025 households (equal to 4,620 folks) from seven villages in 4 communes in Sesan District.
The compensation package deal featured a home, residential land (20 × 50 meters), agricultural land (three to 5 hectares), compensation for misplaced property and broken crops, transportation service, and 6 months of livelihood restoration assist. The survey on satisfaction stage confirmed that 46% of residents reported average satisfaction, 26% excessive satisfaction, 6% very excessive satisfaction, and 6% low satisfaction.
The livelihoods of residents have modified considerably. Households with “good” lifestyle dropped from 45% (earlier than the challenge) to twenty-eight%, whereas households with a “average” lifestyle elevated from 39% to 42%.
At Dara Sakor in Koh Kong province, the SEZ challenge noticed the relocation of over 1,000 households from Koh Sdach and Tanoun communes in Botum Sakor and Kiri Sakor districts. Residents obtained housing, residential land (0.5 hectares in measurement), agricultural land (two to 3 hectares of land for households of 4 or extra members), and compensation for property and crop losses.
The survey confirmed that 40% of residents had been reasonably happy with the compensation package deal, whereas 31% (extremely happy), 23% (low), 3% (very excessive), and three% (not happy). Their general lifestyle stays unsure.
The Funan Techo Canal challenge, which might run by Takeo, Kandal, Kampot, and Kep provinces, affected 2,305 households (equal to 11,525 folks) throughout a residential space of 180 hectares, with 400 households being absolutely impacted. The type of compensation is money payouts for damages (knowledge compiled and compensation for farmland disbursed in phases).
Relating to satisfaction ranges of the compensation, 39% mentioned they had been extremely happy, 36% (average), 15% (barely happy), 9% (very excessive), and 1% (utterly dissatisfied). As well as, 47% of the folks requested mentioned they “strongly supported” the challenge.
‘We’re permitting them to earn a residing first’
Resident Lim Tong Eng, who’s affected by the Funan Techo Canal challenge in Samraong Thom Commune, Kien Svay District in Kandal, mentioned that even after a yr, he has not obtained any info concerning compensation.
Residing in a state of uncertainty has impacted his livelihood as he doesn’t dare to domesticate long-term crops like mango and coconut, relying as an alternative on restricted short-term crops, similar to chili and banana.
“This uncertainty is making issues tough as a result of I don’t dare to do something. I wish to plant huge crops however that takes a little bit of time and I don’t dare to do it. I can solely plant quick-yielding crops with sooner yields,” the 77-year-old advised CamboJA Information.
Personally, he mentioned, he doesn’t need the challenge to happen, however can’t say a lot as a result of it’s a authorities challenge.
“In my coronary heart, I don’t need them to dig [the ground]. I don’t need the challenge as a result of it impacts our land and residential. Nothing is left in any respect. The influence for me is 100%; land stretching from my home to the farmland used for cultivation. But when the federal government needs it, what can I do? That’s simply how it’s.”
Heng Sothy, director-general of the Common Division of Waterway, Maritime Transport and Ports underneath the Public Works and Transport Ministry, mentioned some residents affected by the canal challenge obtained compensation.
Property measurements have been accomplished and a three-tier compensation technique aligned with building phases is being put in place to compensate mildly affected teams (farmland) first. It permits moderately-affected teams in city areas to proceed utilizing their land and working their enterprise to forestall revenue loss, whereas preparations are being made to resolve “heavily-affected” teams progressively in subsequent phases.
“Building has not began in particular areas but, so why would the federal government take their land straight away? The federal government is permitting them to proceed incomes a residing, and secondly, it offers them time to seek out appropriate relocation websites. That is the Royal Authorities’s technique.”
Relating to the extent of satisfaction, he mentioned: “I don’t know the precise knowledge assortment or methodologies used. Generally, assembly a bunch of opponents or a bunch of dissatisfied folks could make the speed of dissatisfaction seem excessive, however general and from a macro perspective, we see that almost all of residents are happy.”
Nonetheless, through the consultative workshop to assemble enter from stakeholders that day, officers from the Ministry of Atmosphere additionally requested a overview of the index classifications and steered submitting the preliminary findings to them for overview.
Drawing in expertise to maneuver ahead
A participant on the consultative workshop, Prak Pheung, an indigenous Punong working on the Cambodia Indigenous Ladies Affiliation, known as for the report to point out the impacts of resettled indigenous folks of the apply of conventional customs and traditions, and lack of entry to sufficient clear water. Practically 100 affected households within the Kbal Romeas space haven’t accepted compensation but, she mentioned.
Undertaking researcher Solar Chanthy mentioned the findings are based mostly on present paperwork and proof, including that he confronted difficulties accessing or acquiring info for verification, similar to studies referring to the analysis of government-led funding tasks.
In flip, he urged traders to share analysis studies in order that they will study transparently, quite than protecting them secret, which impacts or limits evaluation and outcomes.
Chanthy talked about that he didn’t emphasize the optimistic points of the tasks within the report as “a lot of the factors raised are areas that must be understood together with skilled impacts”.
“This report has no intention to disparage funding, quite it serves to attract on experiences to maneuver ahead, that means we should always consider carefully with a purpose to forestall antagonistic impacts, guarantee sustainable funding, and decrease dangers from future investments.”
