ADB country director Jyotsana Varma (left) and finance minister Aun Pornmoniroth formalise the concessional loan and grant agreements in Phnom Penh on December 17. Supplied
Cambodia has signed concessional loan and grant agreements with the Asian Development Bank (ADB) to support five key development programmes, bringing the bank’s total investments in the country to $403 million for 2024.
The agreements were formalised during an official ceremony in Phnom Penh, presided over by Minister of Economy and Finance Aun Pornmoniroth and ADB country director Jyotsana Varma, according to a December 17 ADB press release.
“This year marks a significant milestone in our partnership with Cambodia, with the approval of $403 million in loans and grants under the framework of our new country partnership strategy for 2024–2028,” Varma was quoted as saying.
“From strengthening vital infrastructure to enhancing climate resilience and human capital development, these projects will support Cambodia’s continued progress toward a prosperous, inclusive and green future,” she added.
The agreements span multiple sectors, targeting education, trade, water resource management and gender-based violence (GBV) prevention, as well as enhancing climate resilience and rural sanitation.
According to the release, the $90 million “Rural Water Supply, Sanitation and Hygiene Improvement Sector Development Programme”, signed earlier this year, will provide climate-resilient and inclusive water, sanitation and hygiene (WASH) infrastructure. It aims to benefit 88,000 households across 400 villages in 50 communes in nine provinces.
To strengthen human capital, the $80 million “Secondary Education for Human Capital Competitiveness Project” will focus on improving the country’s secondary education system. The project will emphasise 21st-century skills such as critical and creative thinking, enhance inclusive teaching and develop climate-resilient school facilities to reduce overcrowding and improve access to quality education.
The fight against GBV will be addressed through a $10 million grant for the “Strengthening Country Systems for Prevention and Response to GBV Project”. The initiative aims to help the country achieve its goal of eliminating GBV by 2030. It focuses on improving legal frameworks, upgrading legislation on domestic violence, enhancing response services, refurbishing shelters for survivors and promoting prevention through digital and community-based programmes, particularly in rural areas.
The $50 million “Trade and Competitiveness Programme”, part of an ongoing initiative, will advance reforms to improve the business environment, enhance competitiveness and reduce trade barriers.
“ADB is committed to fostering an enabling environment for the private sector, including enhancing trade and competitiveness, to drive sustainable economic growth and create opportunities for all. ADB remains steadfast in its partnership with Cambodia to deliver transformative outcomes that create lasting benefits for its people,” Varma said.
Meanwhile, in Battambang and Pursat provinces, the $88 million “Integrated Water Resources Management Project” will modernise irrigation systems, reduce flood risks and promote eco-friendly water resource management in the Tonle Sap Basin, with a focus on climate adaptability.
Finally, the $85 million additional financing for the “Irrigated Agriculture Improvement Project” will upgrade irrigation infrastructure in Battambang, Kampong Cham, Kampong Thom and Takeo provinces. The project will boost water delivery efficiency, improve climate resilience and support capacity development for the National Water Resources Management Data Center, while laying groundwork for future investments in flood and drought management.
ADB’s commitments reflect its broader mission to foster sustainable, inclusive and resilient development across Asia and the Pacific. Established in 1966, the ADB is owned by 69 member countries, including 49 from the region, and continues to support efforts to eradicate extreme poverty, according to the press release.
