YCH and Cambodia sign framework pact to develop Phnom Penh Logistics Complex

SINGAPORE'S YCH Group and Cambodia's Ministry of Public Works and Transport have signed a framework agreement to develop the Phnom Penh Logistics Complex (PPLC).

Under the terms of the agreement, YCH will design, develop and operate the PPLC.

The PPLC will be part of the Smart Growth Connect Initiative and is the second project under the Asean Smart Logistics Network. It is expected to help strengthen Cambodia's connectivity with the broader intra-regional trade flows, particularly among the Mekong countries (Cambodia, Laos, Myanmar, Thailand and Vietnam) and south-western China, and contribute towards Cambodia's long-term economic growth.

Sun Chanthol, Senior Minister and Minister of Public Works and Transport of Cambodia, said this partnership will support Cambodia to realise its vision to be a regional logistics hub as outlined in the Interim Master Plan on Intermodal Transport Connectivity and Logistics System.

"Logistics is a key sector for Cambodia to achieve our target of being an upper middle-income country by 2030 and high-income country by 2050. We look forward to working with YCH to incorporate international best practices into PPLC, to maximise its potential."

The project has garnered significant interest from the international infrastructure financing ecosystem with financial institutions like International Finance Corporation, a member of the World Bank Group; and Clifford Capital Pte Ltd, a specialist arranger and provider of project and structured finance solutions, having expressed interest to fund the various aspects of the project.

Infrastructure Asia, which facilitated the discussion between the Royal Government of Cambodia and YCH, will continue to onboard players in the logistics ecosystem, professional service providers and financiers to the project.