Work on Phnom Penh’s 4th satellite city begins

PHNOM PENH, July 11 (Xinhua) -- Cambodia’s Shukaku Inc firm on Monday broke ground for the construction of Boeung  Kak Lake development project -- the fourth satellite city in Phnom Penh.
  Speaking during the ground breaking ceremony, the Governor of Phnom Penh Capital Kep Chuk Tema said that it is a new  achievement for Phnom Penh, the development will turn the area from the city’s largest slum to a new town.
  “The would-be new city will help boost the country’s economic development and will uplift the face of Phnom Penh, the  capital of Cambodia, as the Pearl City of Asia,” he said, adding that the project has got the support of the government.  
  The development of the former slum has been begun after the firm has resettled more than 4,000 families of the squatters and  finished its first phase work of filling the 133-hectare lake with river sand since August 2008, said Lao Van, the son of the senator  Lao Meng Khin, who is the president of Shukaku Inc.
  “The new city would consist of upscale development of trade centers, shopping malls, conference hall, entertainment centers,  night clubs, hotels, universities, hospitals, residential units, recreational facilities, and resorts,” he said.
  The Beoung Kak new town is situated in the heart of Phnom Penh capital; the government granted a 99 year lease to the  Shukaku Inc to develop it in February 2007 with the announced initial investment value of 79 million U.S. dollars.
  It is a joint venture between Shukaku Inc and Inner Mongolia Erdos Hung Jun Investment Company Ltd. (“Erdos”) from  China.  As its partner, Hung Jun Investment Company Ltd participates in the planning, fund raising and construction of the  project after the lakeside eviction been completed.
  Currently, other three satellite cities have been constructing in Phnom Penh including Camko City, Grand Phnom Penh  International City and Koh Pich or Diamond Island City.
  The development of new towns is the government’s strategy to meet the growing economy and population.
  Phnom Penh is currently residing more than 2 million people. It is estimated that the growth is about 20 percent year on year,  according to the city hall.