Phnom Penh (FN), Dec. 20 – The Royal Government of Cambodia signed a cooperation financing agreement totaling USD 192.2 million with the French Agency for Development (AFD) in Cambodia. This agreement is expected to contribute significantly to Cambodia's social and economic development.
The agreement was signed on 18 December 2024 at the Ministry of Economy and Finance, chaired by Aun Pornmoniroth, Minister of Economy and Finance, with Cambodian Prime Minister Hun Manet representing the Royal Government of Cambodia. The event was also attended by Sandrine Boucher, Country Director of the French Development Agency (AFD), Fabrice Etienne, Chargé d’Affaires of the French Embassy in Cambodia, and Bryan Fornari, Head of Cooperation at the EU Delegation in Cambodia.
The cooperation financing, amounting to EUR 183 million equivalent to USD 192.2 million, comprises two concessional loan agreements and one grant agreement, as follows:
1. Concessional Loan for the Svay Chek River Restoration and Management Project: The loan amount for this project is EUR 91 million (approximately USD 95.6 million). Its objectives include restoring the Svay Chek River and 28 reservoirs, increasing the capacity of five reservoirs, and rehabilitating six irrigation systems to mitigate flood and drought risks while restoring the ecosystem. The project also aims to support sustainable agricultural development by strengthening Commune Agricultural Officers (CAO) and modern agricultural cooperatives. Additionally, it seeks to enhance integrated water resources management in the Svay Chek River Basin through the establishment of a River Management Committee and a monitoring and evaluation mechanism.
2. Concessional Loan for the Bakheng Water Supply Project Phase III, Credit No. 2: This loan amounts to EUR 80 million (approximately USD 84 million). The project's primary goals are to increase clean water production at the Chroy Changva plant by 130,000 cubic meters per day, install 800 kilometers of water mains, and expand the water distribution system. Moreover, the project includes constructing the headquarters of the Phnom Penh Autonomous Water Supply Authority.
3. Grant Agreement for the Bakheng Water Supply Project Phase III: Funded by a grant of EUR 12 million (approximately USD 12.6 million) from the European Union through AFD, this project focuses on building the capacity of the Ministry of Industry, Science, Technology, and Innovation by developing a national water sector master plan, establishing a national training center, and supporting sector reforms and other training initiatives. It also aims to strengthen the Phnom Penh Autonomous Water Supply Authority in areas including property management, risk management, business planning, water loss management, and providing water access for low-income residents.
The signing of this cooperation financing agreement underscores the strong partnership between Cambodia and France through AFD, and the European Union (EU). These projects align with Cambodia’s Pentagon Strategy-Phase I priorities, including technical skills training, improving connectivity and efficiency in the transport and water sectors, and promoting agriculture and rural development.
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