Logo of Phnom Penh Post newspaper Phnom Penh Post - Germany to provide $70M to broaden road, electricity networks

Germany to provide $70M to broaden road, electricity networks

Content image - Phnom Penh Post
Christian Berger and Aun Pornmoniroth have signed off on the first loan agreements between Cabodia and Germany. Ministry of Economy and finance

Germany to provide $70M to broaden road, electricity networks

Minister of Economy and Finance Aun Pornmoniroth and Federal Republic of Germany ambassador to Cambodia Christian Berger reached two agreements on Thursday to provide the Kingdom with more than $70 million in development financing.

The Federal Republic of Germany Embassy in Phnom Penh said in a press release that they were the first loan agreements between the European country and Cambodia.

The first agreement will see German development bank Kreditanstalt fur Wiederaufbau (KfW) provide more than $33 million in reduced-interest loans and $2.2 million in grant aid to finance the broadening of Cambodia’s rural energy infrastructure, a press release said.

The second agreement will see the Kingdom receive more than $33 million in reduced interest loans and more than $5.6 million in grant aid to benefit the Kingdom’s rural road network, it added.

“Disadvantaged regions and persons shall benefit from the overall economic development of a country. This philosophy applies to our rural electrification and rural road support,” Berger said.

“Connectivity is not only about connecting the big dots on the map, but also about linking the broad areas to the big dots.”

Pornmoniroth said in the press release that the loans would be directed towards improving the government’s four priority sectors – human resources, road infrastructure, energy and water.

He said Germany was the Kingdom’s second-largest European development partner.

“Contributions from developed countries such as Germany and France reflect that Cambodia’s important development partners are confident in the government’s ability to stay on the right track to control public debt,” Pornmoniroth said.

MOST VIEWED

  • Kingdom’s domestic milk still cannot compete with imports

    Price competition and a lack of confidence by consumers are the main reasons the dairy market cannot compete with imports, said domestic milk producers. The large displays of imported fresh milk at the Kingdom’s supermarkets present a cumbersome obstacle for local producers, they said.

  • ‘Pesticide-laden cucumbers’ kill two, poison 150 in Banteay Meanchey

    At least two youths have died and 243 others are being treated for vomiting, diarrhoea, breathing difficulties, dizziness and muscle weakness after they ate cucumbers suspected to consist of pesticides. The incident happened on Saturday, said Banteay Meanchey provincial police chief Ath Khem. He told The

  • Three dead, 13 injured in collapse at Siem Reap pagoda

    At least three people were killed and more than 10 others injured on Monday after a dining hall under construction collapsed at Prasat Kokchak pagoda in Kokchak commune, Siem Reap province. Provincial police chief Tith Narong said Military Police, soldiers and local volunteers had successfully recovered 16

  • Forest Harmony’s $18M luxury villas break ground in Kampot

    Local and French joint-venture Forest Harmony has broken ground on its $18 million “second-home” Luxury Holiday Villas project in Kampot province. Century 21 Mekong CEO and local shareholder of the project Chrek Soknim told The Post that the project will comprise 90 villa units covering 18ha on a 97

  • China Unicom enters Cambodia

    China Unicom, the country’s largest telecoms operator, has expanded into Cambodia to build optical telecommunication pathways in the Kingdom as part of the Belt and Road Initiative (BRI). The Hong Kong-listed company officially opened its China Unicom (Cambodia) subsidiary on Monday to become the

  • PP-SHV Expressway on track for completion in early 2023

    The construction of the $1.9 billion Phnom Penh-Sihanoukville Expressway, which broke ground at the end of March, is on track to be completed by early 2023, Ministry of Public Works and Transport spokesman Vasim Sorya said on Monday. The 190km high-speed highway linking the capital to the