AFD Increases Funding to €200m for Cambodia, €25M (US$27M) Allocated for Rural Road Development

• 30 March 2023
• Local News
• 1142 Views

The French Agency for Development (AFD) has reaffirmed its commitment to supporting Cambodia’s economic growth by doubling its cooperation financing from €100 million to €200 million per year. Furthermore, an additional €25 million (US$ 27 million) will be allocated to the Department of Rural Development for rural infrastructure development.

At the recent meeting on 28-29 March 2023 between the Cambodian government and HE MARIE-HELENE LOISON, Executive Vice President of AFD, the AFD executive stressed that France remains fully committed to supporting Cambodia in all areas and will continue to mobilize grant funding from the European Union and co-financing from other sources. The aim is to help contribute to Cambodia’s development and recovery in line with the AFD Action Strategy 2022-2026 for Cambodia.

The RID4CAM Phase 1 program, which focuses on developing rural infrastructure in the country’s central provinces, will be complemented by an additional €25 million (US$ 27 million) in financing from AFD. This program aims to build infrastructure in the water and sanitation, agriculture, health, and education sectors, while also strengthening the capacity of all stakeholders.

Since 1993, France, through AFD, has provided a total of €927 million in financing to Cambodia. This financing has focused on key areas such as agriculture, irrigation, water, energy, education, health, tourism, environment, and microfinance.

The RID4CAM program has received a total of US$115 million in financing from the German Development Bank (KFW), the French Development Agency (AFD), and the European Union. The German Development Bank has provided €37.1 million in loans and grants, AFD has provided €50 million, and the European Union has provided €8.73 million. (Read more)

This significant increase in funding from AFD is a positive sign for Cambodia’s economic growth, and the country’s real estate market is expected to benefit from the resulting infrastructure development. With AFD’s continued support, Cambodia can expect to see further growth and development in the coming years.

• Investment and Funding