AFD to commit more than 300 million Euros to projects with the Royal Government of Cambodia by 2024

PHNOM PENH: On May 9th, 2022, the Kingdom of Cambodia, represented by a delegation led by H.E. Mr. HEM Vanndy, Secretary of State of the Ministry of Economy and Finances (MEF), the French Embassy, represented by H.E. Jacques PELLET, and the Agence Française de Développement (AFD), represented by the Southeast Asia Regional Director, Mr. Yazid BENSAID and Cambodia Country Director Ms. Ophélie BOURHIS, hold the fifth Policy Dialogue Meeting to discuss strategic priorities and cooperation. During the week, a 5.5M€ regional grant financing to improve air quality throughout the Kingdom and other ASEAN countries was also signed by both parties.

This annual consultation gathered different technical Ministries partners of AFD, co-chaired by the French Ambassador, His Excellency Jacques PELLET. It was the opportunity to reinforce the long-term partnership between Cambodia and AFD and define the main orientations for coming years. The 2022-2024 project pipeline was at the core of the discussions, leading to an agreement between MEF and AFD of more than 300 million euros prioritizing the sectors of water and sanitation, agriculture, water resources management, energy, and vocational training.

With this annual target commitment of an average of 100 million Euros of highly concessional loans and grants in Cambodia, AFD has reiterated its support for inclusive and sustainable growth.

In particular, in line with the 2015 Paris Agreement, AFD reaffirmed the priority given to the fight against climate change in its existing and future project portfolio. Ophélie Bourhis, AFD Director in Cambodia, confirmed AFD’s support for Cambodia’s sustainable development: “AFD supports the fostering of sustainable growth through quality infrastructure, territories resilient to climate change, and inclusive growth. With 75% of projects having climate co-benefits, AFD is committed to answering the needs expressed by the Government of the Kingdom of Cambodia while integrating climate awareness in our common strategy.”

In parallel, an agreement for a grant in air quality improvement has been signed between the Ministry of Environment (MoE), the Ministry of Public Works and Transport (MPWT), and AFD. This program is designed on a regional scale with a 5.5 million Euros grant from AFD, within the perimeter of ASEAN and the countries where AFD operates in the region. It will contribute to greater awareness of air quality issues, better knowledge, and monitoring of air quality on their territory, the strengthening of local capacities, but also the preparation of projects, programs, or public budget loans that could lead to a reduction of air pollution.

About AFD Group: AFD Group implements France’s policy in the areas of development and international solidarity. The Group includes Agence Française de Développement (AFD), which finances the public sector and NGOs, as well as research and education in sustainable development; its subsidiary Proparco, which is dedicated to private sector financing; and soon, Expertise France, a technical cooperation agency. The Group finances to support and accelerate transitions toward a fairer, more resilient world.

With our partners, we are building shared solutions with and for the people of the Global South. Our teams are at work on more than 4,000 projects in the field, in the French Overseas Departments and Territories, in 115 countries, and regions in crisis. We strive to protect global public goods – promoting a stable climate, biodiversity, and peace, as well as gender equality, education, and healthcare. In this way, we contribute to the commitment of France and the French people to achieve the Sustainable Development Goals (SDGs). Towards a world in common.

Source: Ambassade de France au Cambodge