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Market Place
Forms of investment
permitted
The legal forms of investment
permitted include the followings:
-
Wholly
owned domestic capital (100%)
-
Wholly
owned foreign capital (100%)
-
Joint
Ventures;
-
Built-Operate-Transfer (B.O.T); and
-
Business
Cooperation Contract (B.C.C).
Join
Ventures
Formation
of Join Venture
The proposed investment enterprise may be in the form of an incorporated
joint venture which may be formed between investors of any nationality
and may include a joint venture with the RGC. Irrespective of the
nationality of the JV shareholders, there is no limit on the permitted
share holding proportions of each shareholder unless the JV owns or
intends to own land, or holds or intends to hold an interest in land in
Cambodia, in which case the foreign shareholding in the JV shall not
exceed (49%).
Contributions to Join Venture
Contributions in Kind: The capital
value of any asset contributed to the JV is calculated on the basis
of the market value of the asset. Where the CDC in its absolute
discretion determines that value of the asset to be contributed by
any party is more than the assessed market value, the CDC has the
right to use the assessed market value as the value of the
contribution for the purpose of its assessment of the application.
Property:
Any plant, machinery or equipment that an investor wishes to
contribute to the JV or which the JV proposes to purchase shall be
in good condition and shall comply with recognized safety standards
applicable to that type of plant, machinery or equipment. The
investor shall be fully responsible for compliance with those safety
standards.
Land:
A Cambodian investor may contribute land to the capital of a JV. The
value of the land for the purpose of determining the capital
contribution by the Cambodian investor shall be agreed by all the
parties of the JV.
Business
Cooperation Contract (BCC)
This is an agreement between the investor in Cambodia and a State
entity in Cambodia for the purpose of undertaking activities of
production and business in Cambodia and to share between themselves
the profits resulting from their activities without creating in
itself a separate legal entity. Trade or barter agreements are
expressly excluded from the scope of the business cooperation
contracts.
Built-Operate-Transfer
(BOT)
A build-Operate-Transfer (BOT) project is a concession contract in
which a Principal, usually a government grants a con\cession to a
Promoter, sometime known as the Concessionaire, who is responsible
for the construction, financing, operation and maintenance of a
facility over the period of the concession before finally
transferring the facility, at o cost to the Principal, as a fully
operational facility. During the concession period the Promoter owns
and operates the facility and collects revenues in order to repay
the financing and investment costs, maintain and operated the
facility and make a margin of profit.
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