25 Capital-Provincial Investment Sub-Committees (CPISC) have been launched in Cambodia to help decide on private investment and resolve disputes related to investment projects to allow for decision-making power at the sub-national level.
The panels of sub-committees will, as part of Sub-Decree No. 120 on Capital-Provincial Investment Sub-Committees, be used as a means to review any investment disputes.
Issued on June 20, 2022, by the Prime Minister, the sub-decree on the establishment of the CPISCs “as units of the Council for the Development of Cambodia (CDC), contains eight chapters and 13 articles. These relate to the administrative staff for the capital and provinces and replace the analogous investment sub-committees” reported the Phnom Penh Post.
The Capital-Provincial Investment Sub-Committee’s responsibilities will include:
- Review and decide on the registrations
- Provide incentives
- Purchasing and selling assurances
- Merging, deleting and resolving disputes related to private investment projects under USD $5 million. (Previously, only projects with a capital investment of $2 million could be approved by the provincial sub-committees)
In addition, the CPISC could also allow factories to be located closer to raw materials and other resources as well as job creation in the surrounding area.
For larger capitalisation project disputes, these must pass through the CDC’s Cambodian Investment Board (CIB).
The investment capital is equivalent to $5 million within the jurisdiction of the Capital-Provincial Administration in accordance with the sub-decree and investment law reported by the Khmer Times.
Read more in our article on Understanding Mediation & Arbitration in Cambodia.