On June 13, 2025, two Cambodian ministries issued a joint directive (interministerial prakas) amending the rules on the classification of environmental impact assessments for all construction and mining business projects, including artisanal and small-scale operations. The Ministry of Environment and the Ministry of Mines and Energy issued the new Interministerial Prakas No. 4838.
All businesses conducting construction and mining projects, with exception, must now sign an environmental protection letter and file it with the Ministry of Mines and Energy. No project is allowed in areas officially designated as off-limits by that ministry.
An environmental protection letter is not required if the operations stay within one of these size limits:
- Up to 0.5 hectare x 3.0 meters deep
- Up to 1.0 hectare x 1.0 meter deep
However, business owners that do not need to file a letter must still secure a valid excavation license and demonstrate to local authorities that they will uphold the environmental conditions laid out in their environmental protection letter.
Environmental Protection Letter Obligations
The environmental protection letter is provided by the Department of Environment and is an agreement between a business and the government that outlines a comprehensive set of obligations. By signing the letter, the business pledges to operate only on legally owned private land, protect nearby public spaces and heritage sites, employ techniques that avoid ground collapse or soil erosion, and promptly remove or cover loose soil to control dust.
Businesses must also minimize noise and vibration, prevent oil leaks into water or soil, safeguard roads, gather community input, and assume full responsibility for any injuries that occur during operations. They must continue to meet these compliance standards until the projects are completed, and government officers may inspect operations at any time. Any environmental protection letter granted under this prakas is valid for one year and must be renewed by the business to continue operating.
Preceding Reforms
The new Prakas No. 4838 is closely linked to two preceding regulatory reforms. The Environmental and Natural Resources Code, issued in June 2023, along with Prakas No. 8, issued in February 2024, established accreditation standards for environmental impact assessment consulting firms, ensuring that only qualified professionals can conduct and review assessments.
Additionally, Prakas No. 3591, issued in May 2025 by the Ministry of Environment regarding environmental impact assessments, classifies a “factory” as an investment over US$500,000; a “medium-scale enterprise” as an investment between US$250,000 and US$500,000; a “small-scale enterprise” as an investment between US$50,000 and US$250,000; and an “artisanal business” as an investment under US$50,000.
These prakas provide guidelines for determining which projects must undergo environmental impact assessments and the appropriate level of scrutiny each should receive.
Prepared by Raksmei Dara, Law Library Intern, under the supervision of Sayuri Umeda, Foreign Law Specialist
Law Library of Congress, August 18, 2025
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