In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

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In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

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A five-hour drive from Cambodia’s capital, Phnom Penh, Dara Sakor was once touted by the Chinese company building it as a city-sized casino resort for “extravagant feasting and revelry”.

Today, it is a sprawl of mostly empty hotel buildings, deserted beach bars and the unfinished shell of a casino on a remote part of the Cambodian coast. Beyond the resort, the dusty foundations of a planned investment zone stretch down to a container port - both unfinished and idle.

Despite its troubles, the resort and surrounding development has been lauded as a champion of China’s Belt and Road initiative, as the new Silk Road is officially known.

But the embrace of developments like Dara Sakor, whose operations are opaque and economically unclear, seems to run counter to Chinese pledges that Belt and Road projects will be open, transparent and environmentally friendly.

Work began on the project in 2008 after Cambodia leased 45,000 hectares in a national park to China’s Tianjin Union Development Group (UDG) for 99 years. That was long before the Belt and Road initiative was launched in 2013 by China’s President Xi Jinping and gained steam with a summit he hosted in Beijing in 2017.

Little information about the project and its progress is available, and it is unclear how much money has been spent on it, and which parties have benefited.

The project has also resulted in extensive environmental damage as forest was cleared for construction sites, and the displacement of thousands of people, according to villagers and non-governmental groups. They say they have seen little work on the project over the past three years.

UDG didn’t respond to requests for comment, nor did Cambodia’s environment ministry, which oversees the project for the central government.

BELT AND ROAD BOND
Dara Sakor appears to have been adopted as a Belt and Road project around 2017. That May, the China Development Bank (CDB), told the People’s Daily newspaper that it had underwritten a 100 million yuan ($15 million) “Belt and Road” bond CN121611001= to support UDG’s building of a holiday resort on Cambodia’s coast. It didn’t mention Dara Sakor by name.

The project was also included in a 2017 Belt and Road yearbook published by an affiliate of China’s Ministry of Commerce, which called it the Cambodia-China Investment and Development Zone and described it as “the biggest project of the Belt and Road initiative so far”.

The yearbook’s editor, Zhang Gaoping, said the guide had included projects chosen by the “leading group” that Beijing set up in 2015 to manage the initiative.

However, China’s National Development and Reform Commission, which oversees the leading group, said in an e-mail that it had yet to certify any Belt and Road projects.

“We recommend that companies publish as much information as possible before projects are launched, and also provide known information to the public,” it said.

CDB said in an email that it had financed infrastructure such as roads, water supply and power stations. It also said the two governments agreed to cooperate on the project during a visit to Cambodia by Xi in October 2016.

While tourism is often cited in Belt and Road projects, the initiative is primarily related to infrastructure that supports the development of trade routes.

However, unrelated projects are being pitched with the Belt and Road label to smooth approvals and get access to funding, Belt and Road analysts and industry executives say.

Jonathan Hillman, a fellow with the Washington-based Center for Strategic and International Studies said a lack of quality control posed reputational risks for China.

“This has the potential to undermine the Belt and Road coherence and its ability to achieve the goals that Chinese officials actually talk about,” said Hillman, who runs a database tracking Asian infrastructure projects.

$3.8 BILLION INVESTMENT
According to registration records, UDG is a subsidiary of Tianjin Wanlong Group, a Chinese property developer, and was established in 1994.

UDG planned to invest $3.8 billion in the project, which also includes an airport, according to a 2013 report commissioned by Cambodia’s environment ministry.

UDG was to spend $45 million on the port and $76 million to build almost 110 kilometers (70 miles) of roads, according to the report, compiled by the Cambodia-based Sawac Consultants for Development. The company would also spend $1.1 million for tree-planting and environmental protection.

The Phnom Penh Post quoted UDG as saying in 2014 that about $10 million had been allocated for relocation and compensation expenses for villagers.

Over 1,000 families have likely been affected by the project and UDG is locked in multiple land disputes, according to rights groups and local media. In March, the Cambodian government told the environment ministry to give some of the UDG-claimed land back to villagers.

Some are still protesting for more compensation, saying that UDG did not give them what they promised.

UNFINISHED, FEW TOURISTS
It is unclear how much money has been spent on the project so far. UDG does not publish financial reports.

“They don’t give out a lot of information,” said Soeng Sen Karuna, an investigator for Adhoc, a Cambodian group advocating for displaced villagers.

On a recent visit by Reuters, access to the port, which the Sawac report said would be able to handle up to four 20,000-tonne container ships, was blocked by a Cambodian military officer. Viewed from a speedboat, parts of the port – which UDG had told local media would begin operating in 2015 - appeared unfinished.

more here
https://www.reuters.com/article/us-chin ... SKCN1J20HA
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

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frank lee bent wrote: Sat Jun 09, 2018 5:19 amUDG didn’t respond to requests for comment, nor did Cambodia’s environment ministry, which oversees the project for the central government.
LOL
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

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Very interesting read, thanks
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

Post by CEOCambodiaNews »

UPDATE:
Century Entertainment inks revised table rights deal ahead of March launch of new Cambodia casino
By Inside Asian Gaming -
February 8, 2021

Hong Kong-listed Century Entertainment International Holdings Ltd has signed a revised agreement with its Chairman and CEO, Ng Man Sun, that will allow it to launch mass table gaming operations at a new casino in Dara Sakor, Cambodia in March.

The new agreement comes as Century Entertainment, formerly known as Amax International, confirmed that opening of the new casino had been delayed from January due to recent business closures as a result of COVID-19 and interruptions in the global logistic market that has seen the delivery schedule of certain essential equipment delayed. The owner of the building in which the new casino will be located has now decided to focus on finalizing mass market gaming operations with the mass gaming floor expected to open by early March, the company said.

Century Entertainment had originally signed a five-year deal with Lion King Entertainment Company Ltd – a company wholly-owned by its CEO Ng Man Sun and which will run the casino in question – in 2019 to operate four gaming tables at his casino in Sihanoukville.

In full: https://www.asgam.com/index.php/2021/02 ... ia-casino/
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

Post by CEOCambodiaNews »

Century Entertainment delays launch of table gaming operations in Cambodia
By Peter Lynch
1 April 2021
Century Entertainment International Holdings Limited has announced it will delay the launch of its mass table gaming operations at a new casino in Cambodia, due to the latest Covid-19 outbreak in the country.

Century Entertainment had planned to relocate its gaming table business from Sihanoukville to the new casino in Dara Sakor in February, but the opening date was postponed until March due to a rise in Covid-19 cases.

That date has now been postponed to April, with Century Entertainment confirming that it has been informed by the owner that reopening preparation works have been deferred due to lockdown measures in the country.

“As disclosed in the announcements, it was expected that the mass market of the new casino could be re-opened by March 2021,” a statement from Century Entertainment read. “Unfortunately, the happening of the community spread of the Covid-19 epidemic in Cambodia since 20 February 2021 has further hindered the economy activities in Cambodia.

“The company was informed by the assignor that it has decided to defer the re-opening preparation works of the new casino,” the statement continued.

Century noted that “necessary decoration and equipment installation have been completed for the new gaming tables,” but that systems testing and staff training had yet to commence, adding that the new casino will “strive for re-opening on or before late April 2021.”
https://www.gamblinginsider.com/news/11 ... n-cambodia
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

Post by truffledog »

you have to view those investment under the very very long range...its just about occupying the spots which someone considers to be lucrative in the very long run. The money invested does not necessarily need to produce returns in the first 10 years or so. The origins of the money invested is rarely clear. Some of the operations could be used a huge washing machine at the end...maybe their sole purpose.

Cambodia is selling out its prime spots (islands, beaches, national parks, and many other "national" assets) to mostly chinese investors as we know and see on a daily basis filling some deeeeeeeep pockets (that is without the population having any benefit). Change? I dont see that happen anytime soon.
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

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truffledog wrote: Thu Apr 01, 2021 11:45 pm you have to view those investment under the very very long range...
Sure, most of them seem extremely badly thought out but in the long run they don't care.
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

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truffledog wrote: Thu Apr 01, 2021 11:45 pm you have to view those investment under the very very long range...its just about occupying the spots which someone considers to be lucrative in the very long run. The money invested does not necessarily need to produce returns in the first 10 years or so. The origins of the money invested is rarely clear. Some of the operations could be used a huge washing machine at the end...maybe their sole purpose.

Cambodia is selling out its prime spots (islands, beaches, national parks, and many other "national" assets) to mostly chinese investors as we know and see on a daily basis filling some deeeeeeeep pockets (that is without the population having any benefit). Change? I dont see that happen anytime soon.
In reality those prime spots were sold to europeans and russian investors already 10-15 years ago.
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

Post by Anchor Moy »

rogerrabbit wrote: Fri Apr 02, 2021 12:24 am
truffledog wrote: Thu Apr 01, 2021 11:45 pm you have to view those investment under the very very long range...its just about occupying the spots which someone considers to be lucrative in the very long run. The money invested does not necessarily need to produce returns in the first 10 years or so. The origins of the money invested is rarely clear. Some of the operations could be used a huge washing machine at the end...maybe their sole purpose.

Cambodia is selling out its prime spots (islands, beaches, national parks, and many other "national" assets) to mostly chinese investors as we know and see on a daily basis filling some deeeeeeeep pockets (that is without the population having any benefit). Change? I dont see that happen anytime soon.
In reality those prime spots were sold to europeans and russian investors already 10-15 years ago.
Are you saying that Europeans and Russians now own Cambodia's prime land - coast, islands, forests ? Can you give us more information ?
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Re: In Cambodia, stalled Chinese casino resort embodies Silk Road secrecy, risks

Post by John Bingham »

Anchor Moy wrote: Fri Apr 02, 2021 12:41 am
rogerrabbit wrote: Fri Apr 02, 2021 12:24 am In reality those prime spots were sold to europeans and russian investors already 10-15 years ago.
Are you saying that Europeans and Russians now own Cambodia's prime land - coast, islands, forests ? Can you give us more information ?
It's outdated nonsense. About 12 years ago the gossip in Sihanoukville was all about "Russian Mafia/ Military" buying up the islands. Polonski bought one and put a bridge in then got deported and it was seized.
None of the huge developments that have been announced since involve Europeans.
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