PHNOM PENH, Jan. 14 (Xinhua) -- Cambodia on Monday broke ground for the construction of the third ring road encircling capital Phnom Penh under the concessional loan from China.

Cambodian Prime Minister Samdech Techo Hun Sen and Chinese Ambassador to Cambodia Wang Wentian presided over the ceremony, which was attended by more than 10,000 people.

The 47.6-km road, along with four flyovers and eleven bridges, will be constructed under the preferential buyer's credit loan from the Chinese government.

Shanghai Construction (Group) General Company will undertake the construction, which is expected to be completed in 42 months, Hun Sen said.

The four-lane road will connect National Road No. 4 in Chaom Chau 3 commune in southwestern Phnom Penh with National Road No. 1 in Kandal province's Kien Svay district in the eastern part of Phnom Penh.

"The road is crucial to reduce traffic volumes in the urban center, and it is very useful for the people and will contribute to supporting Cambodia's economic growth," Hun Sen said.

He expressed profound gratitude to the government and people of China for having provided a great amount of assistance to Cambodia for infrastructure development projects.

"Most of the investment capital for infrastructure development projects here is from the People's Republic of China," he said, adding that thousands of kilometers of roads and bridges have been built in the kingdom with China's support.

Ambassador Wang said China was very pleased to assist Cambodia to develop transport infrastructure, which is one of the key elements for socio-economic development.

"The road will not only boost economic development in areas along it, but also further improve the image of Phnom Penh, as well as promote investment and tourism," he said.

He said the excellent ties between China and Cambodia have not only benefited the peoples of the two countries, but also importantly contributed to maintaining peace and stability in the region.