The BGA Cambodia team, led by Managing Director Bora Chhay, wrote an update to clients on Cambodia’s Techo International Airport.

Context

  • Cambodia opened its new Techo International Airport (KTI), beginning operations of its $1.5 billion first phase on September 9, with the official inauguration scheduled for October 20 presided over by Prime Minister Hun Manet. The new airport replaces Phnom Penh International Airport, which had served the country since 1959. This landmark investment is set to boost the country’s economy, tourism and direct flights to major cities worldwide. The modern, world-class terminal is designed to accommodate up to 13 million passengers annually and handle long-haul transcontinental flights and about 175,000 metric tons of airfreight per year. KTI is positioned to function as both a regional and transit hub, strengthening Cambodia’s role in global air travel.
  • Through its phased expansions, KTI is projected to reach a capacity of 50 million passengers annually by 2050,firmly establishing Cambodia as a dynamic and competitive regional hub on par with major Southeast Asian gateways.

Significance

  • Prime Minister Hun Manet confirmed May 25 that Phnom Penh International Airport will be closed, with all operations shifting to KTI. He firmly rejected the sale of the old airport, emphasizing it is owned by the government and has historical and public value. He noted that the 300-hectar site could be worth over $3 billion but stressed that its significance to the public and Cambodia’s heritage outweighs any monetary value.
  • The prime minister in March highlighted the new airport as a major gateway for international business, tourism and diplomatic missions, boosting Cambodia’s economy and investment opportunities. The airport is strategically aligned with Cambodia’s goals to achieve upper-middle-income status by 2030 and higher-income status by 2050, driving sustainable economic growth and modernization.
  • The airport spans 2,600 hectares of former farmland and reclaimed land in Kandal provinces about 20 kilometers southwest of Phnom Penh city center. Construction started in 2019, developed by Cambodia Airport Investment Company (CAIC), a joint venture between the State Secretariat of Civil Aviation, which holds a 10 percent stake, and the Overseas Cambodian Investment Corporation, which holds 90 percent. It was constructed by a China State Construction Engineering Corporation. Under the agreement, CAIC has exclusive rights to fund, construct, operate and own KTI.

Implications

  • KTI and its associated projects are expected to boost Cambodia’s annual GDP by 5 percent. Developed in three phases with three runways, phase one launched on September 9, with a 4,000-meter runway and a 243,000 square meter passenger terminal, alongside hotels, a convention center, office buildings, an ecological park and private housing. It has space for two future runways. It will initially handle 13 million passengers annually in its first phase, with capacity to expand to 30 million passengers by 2040 in phase two and 50 million by 2050 in phase three. KTI features include automated immigration gates, mobile check-in apps and smart luggage tracking to enhance the travel experience.
  • Businesses and investors should prioritize strategic alignment with the KTI ecosystem. Companies that strategically position themselves around the airport ecosystem — where aviation-driven growth extends into hospitality, retail, manufacturing and technology as the airport expands into later phases — will be best placed to capture long-term value and competitive advantage.

We will continue to keep you updated on developments in Cambodia as they occur. If you have any comments or questions, please contact BGA Cambodia Managing Director Bora Chhay at bchhay@bowergroupasia.com.

Best regards,

BGA Cambodia Team

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Managing Director

Bora leads BGA’s practice in Cambodia. He is a highly regarded government affairs and public policy expert who helps clients resolve business issues, navigate regulatory and legal challenges, expand operations, explore new investment opportunities and enter Cambodia’s market.  Prior to joining BGA, Bora served for five years as a fast-moving consumer goods (FMCG) corporate and regulatory affairs professional. In this role, he helped transform his company’s government relations and corporate affairs unit into a more effective business-driven group. Notwithstanding Cambodia’s difficult and highly regulated macro environment, Bora played a key role in developing and executing government relations and corporate affairs ... Read More