Thousands displaced by Cambodia lake development

Cambodia's Boeung Kak Lake is set to be filled with sand and thousands of people removed from their homes, as part of a development project starting next month.

While the exact nature of the development is unclear, the developer will dredge the water and replace it with sand with a view to build shops, apartments and hotels.

Radio Australia's Sonja Heydeman reports the plan leaves the fate of four thousand lakeside families unclear.

Boeung Kak Lake and surrounds, an area of around 133 hectares, was leased in February last year to a private developer by the Municipality of Phnom Penh.

The decision has sparked a human rights outcry.

The director of Bridges Across Borders in Southeast Asia, David Pred, told the Connect Asia program the lease agreement is illegal under Cambodian law.

"Under international law, Cambodia's human rights obligations under the international covenant on economic, social and cultural rights, the circumstances surrounding the development and the impending eviction have also constituted serious violations of law," he said.

"People have been intimidated, there's been lack of consultation serious lack of information, there's been no transparency surrounding the development of what's happening."

The $US79 million leasehold agreement has been made with Shukaku Inc.

Cambodian opposition MP from the Sam Rainsy party, Son Chhay, says there is some background to the deal.

"The company which is led by Senator Lao Meng Khin will be involved in the busienss of deforestation, land concession," he said.

"They are invloved with this kind of business that not many people are able to do, unless you are very close to the ruling CPP.

"We believe that there was some share from the Hun Sen family in the company."

The amount of compensation on offer to families remains unclear, while some reports suggest there's a figure of around $US10,000 per house.

Son Chhay believes the people will be given a small fraction of what the market price actually is.