The Cambodian Ministry of Economy and Finance and the Asian Development Bank (ADB) have signed a US$332.05 million financing package to support Cambodia’s response to the coronavirus disease (COVID-19), further develop the financial sector, build urban infrastructure and help improve the road network.
The loan and grant agreements were inked here on Dec. 8 by H.E. Aun Pornmoniroth, Deputy Prime Minister and Minister for Economy and Finance and ADB Acting Country Director for Cambodia Mr. Anthony Gill.
The agreements include the US$30 million Greater Mekong Subregion (GMS) Health Security Project, the US$180 million Livable Cities Investment Project, the US$82.05 million Road Network Improvement Project (Phase 2), and the US$40 million Inclusive Financial Sector Development Programme, according to an ADB’s press release.
“As Cambodia’s long-standing development partner, ADB is committed to supporting the country’s economic competitiveness and inclusive development,” said Mr. Gill.
“The projects will boost Cambodia’s economic recovery by improving health facilities, financial inclusion, infrastructure and urban services at strategic locations, including road networks,” he added.
ADB said the GMS Health Security Project will improve laboratory services and infection prevention control at 81 provincial and district hospitals across Cambodia.
It will boost disease surveillance and response systems, COVID-19 outbreak management and contact tracing at central, provincial, and district health agencies. The project is also funded by a US$5 million grant from the Government of Japan’s Japan Fund for Poverty Reduction (JFPR).
The Livable Cities Investment Project will help provide better wastewater and solid waste management services to more than 140,000 residents in Bavet, Kampot, and Poipet. It will help the three cities upgrade urban stormwater and drainage systems and reduce flooding. JFPR has provided a US$2 million technical assistance grant to support efforts to improve land use planning and governance, among others.
Phase 2 of the Road Network Improvement Project will rehabilitate 48 kilometres of national and provincial roads in Prey Veng and Kandal to boost economic development along the GMS Southern Economic Corridor. The project will adopt disaster- and climate-resilient designs and help the Ministry of Public Works and Transport better manage roads.
The Inclusive Financial Sector Development Programme will help the government expand access to credit among micro, small, and medium-sized enterprises, implement reforms to boost financial stability, and upgrade financial sector infrastructure.
ADB is implementing investment projects totaling US$2.08 billion in Cambodia.
ADB’s lending pipeline for 2021–2024 includes US$1.38 billion in concessional lending and US$36.8 million in grants to support the country’s economic development and recovery from the COVID-19 pandemic.
Source: Agency Kampuchea Press