Cambodia will begin building of its Chinesebacked $1.7 billion Techo Funan canal this August, Prime Minister Hun Manet stated on Thursday, explaining the advancement as a historic project.

The 180-km (112-mile) canal that will link the Mekong River basin to the Cambodian coast has caused tension between Cambodia and neighbouring Vietnam, and stimulated worries that it might be used by Chinese warships. Cambodia has actually dismissed those claims as baseless.

Acknowledging concerns about the job Hun Manet explained the strategic facilities advancement as a historic job in the country's interest.

A great deal of individuals have asked about this canal and some stated this and that, that it benefits Vietnam, China, or (is) an attack on Vietnam, he stated.

Whatever they say, this canal on Cambodian territory is for the Cambodian people.

Cambodia states the upgraded canal would decrease its dependence on Vietnamese ports, cut transportation costs, and advantage 1.6 million individuals living along the canal by supplying much better watering for farming.

The government is in talks with a Chinese investment company to help money the task, Hun Manet said, however stressed the job would continue regardless. We must do it now, we do not wait any longer, he stated. We will begin construction in August.

The canal upgrade, part of China's Belt and Roadway Effort, will be established by a major Chinese state-owned building business, China Roadway and Bridge Corporation.

Cambodia has spoken with China on the technical aspects of the canal, stated Hun Manet, adding that the government had also worked out for the majority of the workers to be Cambodian.

Slated to be completed by 2028, the job has the prospective to reignite stress between Cambodia and Vietnam.

Ecologists and Vietnamese authorities have expressed issue about possible damage to the fragile Mekong Delta, a. enormous rice-producing region supporting millions of people. downstream in Vietnam.

Cambodia denies this and has also dismissed speculation the. canal might be used to enable gain access to for Chinese warships.

Thursday's announcement follows close regional allies. Cambodia and China held their annual 15-day Golden Dragon. military exercises earlier this month.