Phnom Penh (FN), July 20 – The Ministry of Economy and Finance (MoEF) and the Export-Import Bank of China, on 10 July 2018, signed a $ 259 million concessional loan agreement to finance the construction of the third Ring Road Construction Project, according to the MoEF’s press release dated on Friday.

Ministry of Public Works and Transport, on behalf of the Royal Government of Cambodia, has signed a contract with Shanghai Construction Group to implement the construction of the third ring road, which will be supervised by Guangzhou Wanan construction supervision Co., Ltd from China.

According to Kong Sophorn, deputy governor of Kandal province, the Third Ring Road will form a semicircle that starts at National Road 4 west of the capital and arcs south and east to National Road 21 before crossing the river and heading northwards to connect National Road 1.

The 47-kilometre Third Ring Road will facilitate traffic in Phnom Penh and the implementation of Cambodia's industrial development policy.

The Third Ring Road is another fruitful result under the Cambodia-China comprehensive strategic partnership on top of the Second Ring Road being implemented.

Urbanizing from 300 square kilometers to more than 600 square kilometers, Phnom Penh, however, encounters three major issues: traffic jams, drainage congestion, and garbage clogging.