About 80 percent of the proposed $965 million Asian Development Bank (ADB) financing for Cambodia will be spent on priority projects such as infrastructure development, finance, agriculture, education and health, officials told Khmer Times.
The government and ADB are still in the process of negotiation, while Cambodian officials will hold internal discussions from next month to identify the projects under the Indicative Country Pipeline and Monitoring (ICPM) 2023-2025 initiative.
Chhuon Samrith, Director General of the General Department of International Cooperation and Debt Management, told this newspaper that Cambodia will need to conduct a detailed study¬ on the projects within a year and follow all the procedures before both parties could sign a financing agreement and project implementation pact in 2023.
Ministries that would be involved in the planned financing for 24-32 years under the ICPM framework include public works, agriculture, rural development, water resource, education, mines and energy.
“Those projects will be related to connectivity such as roads and bridges, which means the financing will be used on projects that support long-term economic growth,” said Samrith, adding that 80-90 percent of the financing would be loan with 1-1.5 percent interest rate, while the rest would be grant and technical assistance.
Eng Touch, Deputy Director General of General Department of Budget, told Khmer Times that ADB strategies of financing match the rectangle strategies and national development programmes of Cambodia to boost economic growth.
Vongsey Vissoth, MEF secretary of state, said during a meeting with ADB Group Board — Tony McDonald and Takahiro Yasui, who visited Cambodia from 24 to 30 this month — last Thursday that ADB’s financing and technical assistance are very important for Cambodia’s economic and social development.
The visit of the ADB Group Board to Cambodia aims to review the progress of ADB-financed projects in the country and understand the opportunities and challenges in the country and the region as a whole in the wake of Covid-19.
The ADB Group Board also praised Cambodia for its success in the fight against Covid-19 as it not only maintained macroeconomic and social stability during a hard time but also managed to fully reopen all sectors in the country. The group also praised Cambodia for its steady progress and development.
The ADB Group Board delegation visiting Cambodia included Tony McDonald, Executive Director for 13 Asian countries, Takahiro Yasui, Executive Director for Japan and Sergio Lugaresi, Executive Director for six European countries.
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