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The Government of Cambodia is moving forward with negotiations with China’s state-run Yunnan Investment Holdings Ltd. (YIHL) for the development of the new Siem Reap Airport PPP project. 

This agreement will give YIHL an exclusive 55-year build, operate, transfer (BOT) concession on the new airport, replacing the agreement with Cambodia Airports, which is majority-owned by Vinci.

In mid March, 2016, Vinci inaugurated the Siem Reap airport expansions. It's likely that the government will cut the concession to operate the airport.

In October, the Cambodian government reached an agreement with YIHL to build the new airport to serve Siem Reap. The project has a total estimated investment of US$880 million.

Construction of the greenfield airport on 700 hectares of land provided by the government is expected to take three years. The plan is to build a 4E class airport, with the possibility of expanding to 4F compliance, which means the airport could receive larger long-haul aircraft.

Once operational, YIHL’s Siem Reap Angkor International Airport would replace the existing airport at Siem Reap operated by Vinci.

According to sources Yim Nola, the senior minister of the Cambodian government, said:

“We informed Cambodia Airports to prepare for the negotiations and requested they calculate the size of their investment in the Siem Reap airport and evaluate its current value,” he said.

“The new Chinese company will be responsible for paying the agreed compensation amount, though it will not be disbursed until the new airport starts operations.”