PHNOM PENH, CAMBODIA (9 January 2018) — The Asian Development Bank (ADB) today signed three project loan agreements with the Government of Cambodia to provide support for road network improvement, provincial water supply and sanitation, and smallholder farmers development in Tonle Sap.

The loan agreements were signed by Aun Pornmoniroth, Senior Minister, Ministry of Economy and Finance of Cambodia, and Samiuela Tukuafu, ADB Country Director for Cambodia.

The $70 million Road Network Improvement Project will improve 147-kilometer of road for all-weather conditions within the provinces of Prey Veng, Siem Reap, and Svay Rieng. The project will support national efforts to make the transport sector more efficient, safe, and disaster-resilient and further enhance the capacity of the Ministry of Public Works and Transport to better manage road assets through improved planning of operations and maintenance. Peoples’ awareness and observation of road safety and regulations is expected to improve.

The Provincial Water Supply and Sanitation Project will help expand and improve urban water supply and sanitation services and will benefit more than 209,000 people in Battambang, Kampong Cham, Siem Reap, and Sihanoukville. It will include the construction of water and waste water treatment plants, piped water connections, and sewer pipelines. The $50 million loan from ADB will be complemented with a $10 million grant from the Japan Fund for the Joint Crediting Mechanism, funded by the Government of Japan, a €40 million ($43.5 million) loan cofinancing from Agence Française de Développement, and a €4.67 million ($5.09 million) grant from the European Union’s Asia Investment Facility. The Government of Cambodia will contribute $10.54 million.

ADB’s additional financing for the Tonle Sap Poverty Reduction and Smallholder Development Project will further improve agriculture productivity and diversify Tonle Sap Basin’s economy to benefit smallholder farmers in Banteay Meanchey, Kampong Cham, Kampong Thom, Siem Reap, and Tboung Khmum. The additional funds will also include development initiatives that reflect the needs of local communities and address issues of low productivity, weak value chains, and high vulnerability to climate change. ADB will provide $50 million for the project, along with a $10 million concessional loan from the International Fund for Agricultural Development, and $6 million equivalent from the Government of Cambodia.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region.

Source: ADB.org