ADB Provides US$332 Million Fund to Cambodia to Boost Sustainable Economic Recovery

• 8 December 2021
• Local News
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The Asian Development Bank (ADB) has provided US$332.05 million in financing to Cambodia 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 financing package was signed on 8 December by Minister of Economy and Finance HE Aun Pornmoniroth and ADB Acting Country Director for Cambodia Anthony Gill.

The loan and grant agreements are for the US$30 million Greater Mekong Sub-region (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 Program.

The GMS Health Security Project will improve laboratory services and infection prevention control at 81 provincial and district hospitals across Cambodia.

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.

The Government of Japan’s Japan Fund for Poverty Reduction (JFPR) has provided a $2 million technical assistance grant to support efforts to improve land use planning and governance, among others.

The budget is also designed for the Phase 2 of the Road Network Improvement Project, which 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.

Additionally, the money will be used for the Inclusive Financial Sector Development Program 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 totalling US$2.08 billion in Cambodia.

In 2020, ADB provided US$477.2 million in sovereign loans and grants to Cambodia and catalyzed an additional US$281.3 million through co-financing.

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.

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