99-Year Lease on Boeng Kak Lake

On February 6, 2007, Phnom Penh municipality signed a 99-year lease with little-known private company Shukaku Inc to develop a 133-hectare lake area in Srah Chak commune, which encompasses Boeng Kak’s thriving backpacker district and residential communities, and plan to build a luxury resort as well as commerce and cultural centers.

According to a copy of the contract, the company is paying $79 million for the lease and some of that money will be used to compensate 4,252 families currently living in the area. The contract does not state how much each family will receive, and mentions that some of cash will be used to develop infrastructure in the capital.

Some families have lived lawfully in their community since the 80s suggesting that they have legal rights to the land under 2001 land law.

SRP leader Sam Rainsy said at the International Dubai Mosque on Sunday that he will lead a large-scale demonstration against Phnom Penh City Hall if it evicts people living around Boeng Kak backpacker lake area without paying them market price for their land. He told the crow that “if authority dares to evict you from Boeng Kak, I appeal to you to participate in a massive demonstration.”

At the mean times, Human Rights group are concerned that the sale of Boeung Kak may be illegal.

Article 30 of the land law states that any person who can prove that he or she has lived uncontested on a property for no less five years has the rights to request a “definitive title of ownership” if he was on that land before the law was adopted in August 2001.

What will happen to people who are living in the planned development in the lake area? It makes grave concerns about the future of resident communities. In the past, there were many sad example of eviction of people from their communities such as Preah Monivong Hospital and Sambok Chab village. Those were forcibly moved out of their home under-developed land far away from the city without electricity, lake of water supply, education facilities and market.