WB Provides US$110m Loan to Enhance National Road No.4

• Proeksa Meas
• 13 June 2018
• Uncategorized
• 2698 Views

The World Bank has officially granted a loan of US$110 million to enhance Cambodia’s road connectivity following the signing of agreements yesterday, according to the official press release.

On 12 July 2018, the Royal Government of Cambodia and the World Bank signed agreements on two projects; the Higher Education Institutions Capacity Improvement Project (HEICP) worth US$90 million; and the Second Road Asset Management Project (RAMP II) for US$110 million.

The financial loan for RAMP II is aimed at upgrading the 240-kilometre long National Road No.4 connecting the capital city to the country’s only deep-sea port in Sihanoukville.

The loan will be used to improve road shoulders and build drains and bridges with innovative, climate resilient designs. Additionally, it will also upgrade existing weighing stations to reduce the risk of overloading, install speed-limit zoning, guide-signs, solar powered lights, and speed cameras.

According to the press release, the projects are being financed through credits by the World Bank’s International Development Association for poorest countries using a scheme of interest-free loans. Payment is spread over 38 years, including a grace period of six years.

The agreements are in line with the country’s Industrial Development Policy and the Industrial Development Plan 2015-2025.

“Signing these projects today commits the government to achieve their crucial objectives,” said H.E. Dr. Aun Pornmoniroth, Senior Minister, Minister of Economy and Finance.

The RAMP II was requested by the Ministry of Public Works and Transport (MPWT) in February and was approved by the World Bank’s Board of Executive Directors in June, 2018. Read More

“Closing infrastructure gaps will also be essential to foster Cambodia’s competitiveness in the region and promote private sector development,” said Inguna Dobraja, the World Bank’s Country Manager for Cambodia.

According to the Minister H.E. Dr. Aun Pornmoniroth, World Bank has so far provided US$1,734.43 billion million in loans for Cambodia, of which US$1,148.93 million is concessional loans and $585.50 million is grant aid.

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