Infrastructure concessions in Cambodia are now governed by the Law on Public-Private Partnerships (the “PPP Law”), promulgated on November 18, 2021. The PPP Law replaced the 2007 Law on Concessions.
Transition from the Law on Concessions
The PPP Law repealed the Law on Concessions, with exceptions for concession projects and contracts whose terms and conditions had already been approved. Existing concessions should be reviewed individually to confirm which regime applies to them.
What is a public-private partnership?
A public-private partnership is an agreement between the State and a private partner to restore, repair, expand, build, operate or maintain public infrastructure, or to provide public services, for a fixed period. The private partner invests, bears risk, and is paid according to its performance.
Scope
The PPP Law applies to qualified projects for public infrastructure and public services, including transport, digital and telecommunications, energy, environment and social sectors. Priority sectors for 2025–2030 are set by Decision No. 230 of 2024.
Who may be the private partner?
- A company incorporated in Cambodia;
- A foreign company registered under foreign law; or
- A public enterprise that is not the implementing agency for the project.
Responsible authorities
The Ministry of Economy and Finance oversees the PPP framework through its General Department of Public-Private Partnerships. Ministries, institutions and public enterprises may act as implementing agency and sign the PPP contract with the private partner, and the Ministry of Economy and Finance countersigns on behalf of the Royal Government.
PPP projects may also qualify for incentives under the 2021 Law on Investment. See Investment Law FAQ. Investors should obtain specific advice on the selection process, contract terms and approvals that apply to a particular project.
