The Associated Press
September 26, 2006

PHNOM PENH, Cambodia The Cambodian government has agreed to allow a Russian-run company develop a coastal island into a tourist resort with an initial investment of up to US$300 million (€234.9 million), officials said Tuesday.

Cambodian officials and Russians representing the firm signed an "agreement in principle" during a ceremony presided over by Prime Minister Hun Sen in Siem Reap province late Monday, said Sri Thamrongk, an adviser to the prime minister.

Commerce Minister Cham Prasidh, who signed on the government's behalf, confirmed the signing of the agreement but declined to talk about it in detail.

The agreement will allow Koh Pos Investment Co. Ltd. to develop and manage Koh Pos, or Snake Island, for 99 years, said Khiem Kolneath, an assistant to Alexander Trofimov, the company's chairman.

The island is located about 800 meters (a half-mile) off a popular beach site in Sihanoukville, about 185 kilometers (115 miles) southwest of the capital Phnom Penh.

Trofimov was not available for comment Tuesday.

Khiem Kolneath said the company has six months to present the government with a development master plan, which will include hotel, recreation center and construction of a bridge linking the beach with the island.

He added that details of the master plan will be still subject to the government's review and approval.

A Malaysian company originally secured the right to develop the island in mid-1990s, but the Cambodian government recently canceled its contract with the firm after it failed to carry out its commitment.

Tourism is a major industry generating much needed hard currency for the cashed-strapped Southeast Asian government.

why are the allowing russians to own and completely run companies on khmer land?

Because no Cambodian has $300 million to develop an island resort. In any case that's $300 million pumped into Cambodia, which is a good thing isn't it? Of course, majority of the profits will go to the Russian company, but local jobs will be created on the island, and will indirectly create a few jobs where people are taken to and from the island via boat. People will have more incentive to stay in Cambodia an extra day or two as well, Sihanoukville needs more investment along with Bokor Hill Station so that people don't just totally associate Cambodia with only Angkor and Phnom Penh.

Then later, when the contract expires, that 300 million investment will be completely owned by Cambodia =D hahahaha SUCKERS!

yeah in 99 years right, that's a long time but do you think it's actually worth it?

+ how do you we know they'll hire khmers and not russians?

I don't, but chances are the staff will be Cambodian because quite frankly, its cheaper to run a business using the local Cambodian workforce rather than importing workers from Russia.

Maybe management level staff and above will be Russian, but in a few years when Cambodians become better at their jobs, then it would probably be wiser for the owners to put in a Cambodian manager, even if to save a couple of bucks.

i see, fair enough ...

yeah after ninety five year. the russian will sell it to china and they will own it for another 99yrs. starting from the ninety five years as one year.

They don't own the land, they have no right to sell it.

you are right, they dont own the land but they own what ever on the land.

US$300 million my money...

Nothing with foreign investment, Cambodia need the money.....

russians need to go away,i believe cambodia can do it on there own. if cambodia needs assistants then just ask vietnam

^suka!

VietNam can't do much, what VietNam can do is limited.

im all for the resort. If it can bring more money in, then im game.

well, the hydroelectric dam in laos is 100% vietnamese investment, maybe we should start investing more in cambodia as well, there are money to be made for all of indochina.....