Cambodian Gov’t Ambitious Vision: Securing US$2.2 Billion Loan for Key Sector Development by 2024

• 3 November 2023
• Local News
• 1960 Views

The Cambodian Government is set to embark on a transformative journey by seeking international loans exceeding US$2.2 billion (IMF’s international reserving fund that can be converted into cash on demand). This dynamic endeavor, unveiled within the summary of the draft law on finance for management in 2024, is a testament to the nation’s unwavering commitment to bolstering pivotal sectors for sustained growth.

The government’s strategic approach encompasses a multifaceted focus on priority sectors that are poised to redefine Cambodia’s economic landscape. Here’s a snapshot of the key sectors earmarked for this significant infusion:

Energising Progress: Transmission and Distribution Expansion, Phase 3: An initiative to fortify Cambodia’s energy sector.

Water Resources Empowerment: Comprising three game-changing projects – Lower Stung Sen Water Resources Development Project in Kampong Thom Province, Integrated Water Resources Management Project in the Eastern Mekong Delta (Phase II) spanning Prey Veng and Svay Rieng Provinces, and the Water Resources Management and Transformation Program (Agriculture Step 2).

Infrastructure Upliftment: Roadways Redefined: A diverse set of projects including the upgrade of National Road No. 5 from Thla Mam, Pursat-Battambang, and from Serei Sophorn-Poipet (Phase 3), the expansion of National Road No. 6 in Siem Reap (Trapeang) Thom-Slor Kram, the construction of the 3rd ring road on the east bank of the Mekong River (Phase 1) featuring two bridges spanning Koh Dach and a 30km road, construction of National Road 70B (Tonle Bit, National Road 7-Srey Santhor) – Prek Tamak – Lvea Em – Peam Ro (National Road 11), and the construction of National Road 50C from Kampong Chhnang to Kampong Thom.

Urban Development Unleashed: Notable projects include the Flood Protection and Sewerage Development Project in Phnom Penh, the Sustainable Development of Water Supply in the East and South, the Rural Road Improvement Project (Phase 4), Emergency Rural Road Construction Project, Rural Sustainability Capacity Building Project, and the Rural Productivity Capacity Building Project (Additional Financing).

Empowering Education and Skills: Nurturing Talent: Two crucial projects in the field of education and vocational training: the Human Resource Competitiveness Development Project in the Higher Education Sector and the Employment Skills Development Project.

Fostering Trade and Competition: Global Integration: The Government’s vision encompasses trade promotion and competition programs to bolster Cambodia’s position in the international marketplace.

Crucially, these foreign loans are poised to strengthen Cambodia’s economic standing without translating into an escalating national debt. Technically, Cambodia maintains a “sustainable” and “low-risk” public debt status, with all key debt indicators remaining well below benchmark ratios.

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