Unofficial Translation

Kingdom of Cambodia

Nation Religion King

Royal Government of Cambodia

Council for the Development of Cambodia

No. 1909/02 CDC                                                                                                                                                                      Phnom Penh, July 3^rd, 2002

Respectfully address to

His Excellency Director-General of Preah Sihanoukville Autonomous Port

Object             The high costs on loading and transporting goods at the Preah Sihanoukville port.

References:    -Report of Ad hoc Commission of May 30^th, 2002.

                                    -Prakas (Declaration) No. 1064/02/CDC of April 11^th, 2002 on the Establishment of Ad hoc Commission to monitor the high costs on loading and transporting goods at the Preah Sihanoukville port.

Pursuant to above object and references, I would like to inform you that according to the proposal of private sectors to reduce high costs at the Preah Sihanoukville port, the Fifth Royal Government- Private Sector Forum held on February 28^th, 2002 has decided to establish a commission called “Ad hoc Commission” to monitor the high costs on loading and transporting goods at the Preah Sihanoukville port.

The Ad hoc Commission found that, according to the on site inspection at Preah Sihanoukville port, the expenditures at Preah Sihanoukville port were too high both with or without invoices. Such expenditures related to five institutions including Preah Sihanoukville Autonomous Port.

To enhance the efficiency of laws and to reduce unrelated activities so as to strengthen businesses and services stabilities at Preah Sihanoukville port as well as to encourage investors invested in the Kingdom of Cambodia, the Ad hoc Commission hereby proposes to the institutions including the Preah Sihanoukville Autonomous Port as follows:

-         To conduct a study of the port service charges so as to maintain port clientele who transport their goods through the port and shall be in line with free market rates.

-         To take measures at the following points to suppress and dismantle any illegal payment for goods clearance at 1) transfer, inspection and loading of containers; 2) seal cutter; 3) record containers number at the field; 4) containers check out; 5) document clearance and administration stamps; and 6) security guards at the port gateway.

You are requested to take measures to effectively implement the above mentioned recommendations so as to better attract investment through a reduction of transaction cost in all forms.

Please, Your Excellency, accept the assurance of my high consideration.

                                                                                                                                                                                          Senior Minister
                                                                                                                                                                           Minister of Economy and Finance
                                                                                                                                                                                  CDC First Vice-Chairman

CC:

-         Office of the Council of Ministers

-         Ministry of Interior                                                                                                                                                             Keat Chhon

-         Ministry of Economy and Finance

-         Ministry of Public Works and Transport

-         Ministry of Commerce

-         Ministry of National Assembly-Senate

 Relation and Inspection

-         CDC Vice-Chairmen

-         Cabinet of Samdech Prime Minister, CDC

 Chairman

-         CDC Secretary-General -  CIB Secretary-General -  Records

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