19 Dec, 2014
ADB, Cambodia Sign Loans to Boost Tourism, Water Supply and Financial Sectors
PHNOM PENH, CAMBODIA, ADB Media release, 18 December 2014 – Cambodia’s Minister of Economy and Finance Aun Pornmoniroth and Asian Development Bank (ADB) today signed loan agreements totaling $67 million for three support operations which will further improve the country’s water supply, tourism, and financial sectors.
The loan agreements cover the Third Financial Sector Program–Subprogram 3; Greater Mekong Subregion (GMS) Tourism Infrastructure for Inclusive Growth Project in Cambodia; and the Urban Water Supply Project.
“The program and two projects will help the government further develop the economy by building a more broad-based and resilient financial sector, expanding urban water supply services in provincial towns, and improving tourism infrastructure that will strengthen market linkages and open up new economic opportunities,” said Eric Sidgwick, ADB Country Director for Cambodia, who signed the agreements on behalf of ADB.
The $34 million loan for the Urban Water Supply Project will support and contribute to the government’s goal of 100% piped water coverage in urban areas by 2025. It will help improve the reach and quality of piped water supplies in 9 provincial towns—Kampong Cham, Kampong Thom, Kampot, Pursat, Sihanoukville, Siem Reap, Stoung, Stung Treng and Svay Rieng—by establishing new water supply systems and distribution zones, and by rehabilitating existing treatment plants and pipelines. The project is expected to provide benefits to over half a million people in the towns, including poor and vulnerable households living below the poverty line.
ADB is also providing an $18 million loan to improve last-mile infrastructure that will boost tourism access and environmental services in secondary towns such as Kampot, Kep, and Koh Kong, situated in the Greater Mekong Subregion Southern Coastal Corridor, which will help diversify the country’s tourism industry. The project specifically focuses on enabling women and lower-income groups to gain access to markets and social services, wage-employment, and enterprise support services. The project is expected to significantly boost annual tourism receipts in the participating provinces and contribute to the creation of about 17,000 jobs.
The $15 million loan for Subprogram 3 of the Third Financial Sector Program will support the implementation of the Financial Sector Development Strategy 2011-2020, which sets out a clear vision and direction for the country’s financial sector. It will also help maintain financial soundness, improve financial intermediation, promote good governance, and enhance efficiency in the financial sector.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2013, ADB assistance totaled $21.0 billion, including co-financing of $6.6 billion.
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