ADB Provides US$140 Million in Concessional Loan to Support Cambodia’s Priority Projects

The Asian Development Bank (ADB) has provided US$140 million in concessional loans to support the Royal Government of Cambodia’s Public Service and Financial Decentralisation Phase II and Skills Development Programme for Future Economy.

The loan agreement was signed here on Sept. 26 by H.E Dr. Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, and H.E. Ms. Jyotsana Varma, ADB Representative in Cambodia, according to a press release.

The Public Service and Financial Decentralisation Phase II is aimed to support Cambodia in improving the work efficiency of sub-national officials to make people easier access to public services with a focus on improving sub-national planning and budgeting, strengthening revenue and expenditure management, and strengthening sub-national administrative capacity, it pointed out.

The programme is expected to cost a total of US$40 million, a full ADB concessional loan led by the National Committee for Sub-National Democratic Development.

Skills Development Programme for Future Economy is designed to improve current and future employment rates through policy reforms and project investment to strengthen skills development, including strengthening training in industry as well as increase resources for skills development that respond directly to job needs.

The programme is expected to cost more than US$131 million, including about US$100 million in ADB concessional loans, led by the Ministry of Economy and Finance and the Ministry of Labour and Vocational Training.

The signing of the agreement reflects the ADB’s strengthening and expanding cooperation, support and trust in the Royal Government of Cambodia by the ADB.

The two newly-signed programmes will be to effectively respond to the policies of the Royal Government of Cambodia in the 7th Legislature of the National Assembly, especially the Pentagon Strategy – Phase 1, the ministry said.

ADB has provided a total of US$4.9 billion in loan, of which concessional loans totaling US4.4 billion for the implementation of 137 projects and US$568 million in grant aids for the implementation of 70 projects.