Government signs off on $230m loan to boost economy

Last Updated on 18 January 2013 By May Kunmakara The Cambodian government yesterday signed off on a $230 million loan and grant from the Asian Development Bank (ADB) for six projects expected to boost the economy and infrastructure development. The financing agreement was signed at the Ministry of Economy and Finance between Finance Minister Keat Chhon and Eric Sidgwick, the ADBs country director for Cambodia. According to a statement from the Asian Development Bank, the $230 million ass-istance comprises a $218.4 million concessional loan and a $11.7 million grant. The funds will be used to target economic diversificat-ion, decentralising public services, education, regional development and flood and drought management. Chhon said the latest loan and grant from the ADB would contribute to the kingdoms future development. Todays signing ceremony demonstrates an excellent partnership between the government and the ADB, he said. The financing support for this project is a timely response to Cambodias need for development in the current global context to achieve high economic growth and forms the basis for long-term development. Sidgwick said the agreement reflected the Asian Deevelopment Banks ongoing efforts to achieve inclusive growth through a range of development projects. These initiatives will improve the quality of life for poor and vulnerable people, further develop the economy by helping the government roll out a series of policy reforms and measures to expand trade and investment, diversify the countrys economic base, and help transform Cambodia into an open, market-based econ-omy, he said. Chhon said that to date, the ADBs total loans and grants extended to Cambodia had reached $1.849 billion, $1.498 billion of which were low-interest loans for 63 projects and the remaining $351 mill-ion were grants. Of the funding agreed on, $209.5 million forms part of a loan from the Asian Development Bank, $19.2 million is from the Strategic Climate Fund and the government of Sweden is co-financing a grant for $1.5 million.

To contact the reporter on this story: May Kunmakara at kunmakara.may@phnompenhpost.com

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