Cambodia Secures EU Grant Aid Worth Nearly US$86m to Boost Key Sectors

• 23 March 2024
• Local News
• 533 Views

Cambodia and the European Union (EU) have formalised a grant aid agreement amounting to almost US$85.6 million, aimed at bolstering pivotal sectors crucial for sustainable development. The signing ceremony, presided over by HE Dr Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, alongside representatives from the European Union Member States, marks a significant milestone in bilateral cooperation.

The comprehensive grant aid encompasses four major programmes, focusing on catalysing sustainable value chains, promoting energy efficiency, and fostering renewable energy initiatives. These initiatives, with a combined funding of US$85.6 million, underscore the EU’s commitment to supporting Cambodia’s transition towards a greener and more resilient economy. The four key programmes include:

1. The Cambodia Partnership for Sustainable Agriculture and Food Systems (US$18.4 million), co-financed by Germany (US$7.8 million);
2. The EU Partnership for Sustainable Energy Practices in Industry (US$6.5 million);
3. The Transforming Technical Education EU-Cambodia Partnership 2024-2027 (US$53.1 million); and
4. Trade and Private Sector Development (US$7.6 million), with additional co-financing from Germany (US$3.3 million).

These initiatives represent a strategic effort to reduce dependency on fossil fuels, enhance energy security, and facilitate the integration of Cambodian products into regional and global markets. Moreover, the EU’s support extends to fostering collaboration with diverse stakeholders to drive the green transition forward.

In reaffirming Cambodia’s commitment to fostering robust partnerships with the EU, HE Dr Aun Pornmoniroth emphasised the pivotal role of these programmes in realising the government’s ambitious development agenda.

“The launch of these new four programs in priority sectors will play a predominant role in supporting the implementation of the Government’s Pentagonal Strategy to achieve its goal of becoming an upper-middle-income country in 2030 and a high-income country in 2050,” said the deputy PM.

Echoing this sentiment, HE Jutta Urpilainen, representing the EU, reiterated the bloc’s dedication to collaborating with Cambodia, particularly in navigating the green and digital transitions.

“This visit is a great opportunity for the EU and Cambodia to take stock of our long-standing cooperation while we look together towards a shared future through the launch of four new programmes in key sectors, supporting sustainable economic development and job creation, and fostering concrete cooperation in critical domains,”​ Urpilainen explained.

• Projects Development
• Cooperation and networking