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Boeung Kak

Shrunken lake due to urban development in Phnom Penh

  • 10 min read
  • 6 chapters

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Through Lake, Tourism and Joint venture

In 2007, the Cambodian government made an agreement to lease the land to Shukaku Inc. for 99 years. This agreement resulted in the filling of the lake with sand for the company to build condominiums and other complexes on the land. The change of the lake and the area surrounding the lake had a major social and environmental impact and was the site of a lengthy land title dispute with local residents, with thousands of people eventually being evicted from the area. Several local residents, non-governmental organizations and international actors protested the destruction of Boeung Kak Lake. In 2010, 90 percent of the lake had already been filled with sand. As of 2015, roads and drainage infrastructure have been installed and real estate development is taking place there.

Boeung Kak area lease

The Municipality of Phnom Penh announced on 6 February 2007 that it had granted a 99-year lease for the amount of US$79,002,000 for 133 hectares of land surrounding and including Boeung Kak Lake. The lease was given to a small private development called Shukaku Inc., which is owned by the wife of Lao Meng Khin, a senator for the Cambodian People´s Party (CPP). In the lease the municipality predicted that 4,252 families in Sangkat Chak Khan Daun Penh and other areas around the lake would be affected. The development group Shukaku Inc. wanted to lease the land for the production of trade and service places for domestic and international tourists, as well as for building high-end condominiums. Shukaku Inc. later made a deal with a Chinese Investment Group called Erdos Hongjun Investment Corporation, which was also to help out with the building projects on the newly gained land.

Shukaku has termed the development of the lake "Phnom Penh City Center", and has built an office, roads, and drainage infrastructure on the site. Shukaku struck a joint venture with Chinese firm Erdos Hongjun Investment Corporation in 2010, but this collapsed in 2014. Beijing-based Graticity Real Estate Development bought 20 hectares from Shukaku and is now building the first major development at Boeung Kak, called "One Park".

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