Logo of Phnom Penh Post newspaper Phnom Penh Post - ADB set to provide $1.45B to aid growth

ADB set to provide $1.45B to aid growth

Content image - Phnom Penh Post
Farmers gathers rice grains for sale after harvest season in Battambang province. Under the 2019-2023 strategy, the ADB will also provide loans, grants and technical assistance for agriculture and natural resources management. Heng Chivoan

ADB set to provide $1.45B to aid growth

The Asian Development Bank (ADB) has announced that it will provide $1.45 billion to support a new five-year country partnership strategy (CPS) and help the Kingdom achieve its goal of becoming an upper-middle-income country by 2030, it said on Friday.

Under the 2019-2023 strategy, the ADB will provide loans, grants and technical assistance for agriculture and natural resources management; improved urban and rural living conditions; renewable energy infrastructure; and education and skills development, the bank said.

It said supporting public sector reforms and improving institutional capacity will remain at the core of its programme. The initiatives aim to improve access to and the quality of services for Cambodians, as well as the business environment.

“Our new country partnership strategy will support the Cambodian government’s goals of increasing competitiveness and diversifying the sources of growth.

“[It will] foster sustainable and inclusive development, build climate resilience and accelerate governance reforms,” said ADB country director for Cambodia SunniyaDurrani-Jamal.

Cambodia’s economy expanded eight per cent on average from 1999-2018, making it one of the fastest-growing countries in the world. Gross national income per capita rose from $290 in 1998 to $1,380 last year, the ADB said.

However, challenges remain, including poverty among women-headed households – making them especially vulnerable to unsafe jobs.

The Kingdom’s social protection is limited and gains in health, education, and other human development aspects remain fragile while access to sanitation remains below the average for lower-middle-income countries, it said.

Cambodia, it said, also faces an uncertain global trading environment and increased competition in the region.

“Efforts to diversify the economy into services and manufacturing have been constrained by a lack of skilled workers, gaps in energy infrastructure and logistics, and opaque business processes.”

Durrani-Jamal said the CPS will help create better job opportunities for Cambodians by investing in their education, skills and lifelong learning.

“[It will provide for] Cambodia’s young population. Expanding the use of digital technologies and capitalising on innovations lies at the heart of our country partnership strategy.

“Enhancing women’s potential and leadership, particularly in the public sector, and protecting Cambodia’s vast natural resources are crucial to the next phase of the country’s development,” she said.

A draft of the 2020 national budget which was approved by the Council of Ministers on Friday says the government plans to borrow an additional 1.4 billion through Special Drawing Rights (SDR), or $1.927 billion, from developing partners.

The government will sign on 29 development projects among a total of 32 proposals, which will borrow from the World Bank, the ADB, German state-owned development bank KfW, and Chinese, Japanese and South Korean governments.

As of the end of the first half of this year, the Kingdom’s total external public debt stands at $7.264 billion, of which 28.2 per cent is from multi-partner funds and 48.8 per cent from the Chinese government.

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • New int’l airport nearly half complete as travel industry returns to life

    Construction of a new airport that is slated to serve the capital has passed the 43 per cent completion mark, raising prospects for a proper recovery in the civil aviation and tourism sectors as international travellers return to the Kingdom in increasingly large numbers. The figure

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,