Cambodian Prime Minister Hun Manet officially launched a controversial $1.7 billion (€1.5 billion) canal project on Monday. The China-funded waterway will cover 180 kilometers (110 miles), connecting the Mekong River to the sea.

Thousands of onlookers were on hand to watch Manet press a ceremonial button, cheering as the prime minister hailed the "historic" development.

"We must build this canal at all costs," said Manet to applause. The project has been widely publicized across Cambodia, with billboards placed throughout the countryside.

The future "Funan Techo" canal will run from a river southeast of Phnom Penh, to the Gulf of Thailand. It is scheduled to be completed in 2028. 

About one third of cargo coming into Cambodia must first pass through Vietnamese ports. The aim of the canal is to reduce that number and allow goods to flow directly into Cambodia.

Canal raises economic, environmental concerns

However, experts have noted that the limited capacity of the waterway may hinder these economic goals. It will be only 100 meters (328 feet) wide and 5.4 meters (17.7 feet) deep.

There are also environmental concerns about how it will affect the flow of the Mekong, one of the world's longest and consequential rivers. Cambodia is part of the 1995 Mekong River agreement, along with Vietnam, Laos, and Thailand, to protect the waterway that is vital to each country's economy and ecology.

Vietnam has demanded further details about the project, but the Cambodian government has said it only affects a Mekong tributary and that it has provided enough information.

Deputy Prime Minister Sun Chanthol praised the project for creating "thousands of jobs," but Cambodians affected by new infrastructure projects have long complained that locals are often moved from their homes and offered very little compensation for relocating.

The main feasibility study for the canal was carried out by the China Road and Bridge Corporation (CRBC). Despite this, former Prime Minister Hun Sen denied that the project is part of China's infamous Belt and Road scheme.

However, the door has been left open to further Chinese funding of the canal. Last month, China strengthened its foothold in the South China Sea by providing the Cambodian navy with some major upgrades.

es/wmr (AP, AFP)