Malaysian firm lands project in Cambodia

Malaysian firm lands project in Cambodia

KUALA LUMPUR (AFP): A Malaysian property firm yesterday signed
a pact to develop the single largest infrastructure and tourism
project to date in Cambodia in a deal worth more than US$1
billion.

Ariston Sdn. Bhd., whose only other venture is a 52-acre
(20.8-hectare) real estate project in Kuala Lumpur, sealed an
agreement with the Cambodian government to turn about 1,000
hectares of land in Sihanoukville into a commercial and
residential township.

"The project will serve as a catalyst for the future
development of Cambodia," Ariston chief executive Chen Lip Keong
said.

He made the statement after the contract's signing, which was
witnessed by Cambodian co-prime ministers Norodom Ranariddh and
Hun Sen, along with their Malaysian counterpart, Mahathir
Mohamad.

Sihanoukville, a southern province located 200 kilometers (125
miles) from Phnom Penh, will have a new international airport,
power stations, water and sewage treatment plants,
telecommunication networks and highway linkages under the
proposed development.

The project includes industrial and housing areas, along with
such tourist facilities as a four-star hotel, golf course,
marina, theme parks and cable car services, to be developed on
the nearby Naga Island.

Officials said the deal will account for more than half of the
$2 billion in investment approved by the Cambodian government so
far.

Ariston, capitalized at 56 million ringgit ($22.4 million), is
a wholly-owned subsidiary of the Lipkland Group, which also owns
two publicly-listed firms in Malaysia -- First Allied
Construction Bhd. and Kanzen Bhd.

Chen said Ariston beat four or five companies from Singapore,
Thailand and Australia that were shortlisted by the Cambodian
government for the venture.

Chen said Ariston hoped to complete the project in three
stages in 10 to 15 years and use mainly Malaysian companies to
provide the required technology and services.

"Malaysian companies have experience in constructing airports,
power stations, water and sewage plants and resorts and we don't
envisage any problems in finding management and technical
expertise for this project," Chen said.

Initial news reports last week said the project will include a
casino, but Chen said only that it was a "pretty sensitive"
issue.

Chen said Ariston will depend on internal funds for most of
the works and might form equity alliances with Malaysian
companies where heavy financing was required.