PHNOM PENH: On 19th January 2024 the Ministry of Economy and Finance of the Kingdom of Cambodia and the Agence Française de Development (AFD) signed three financing agreements in the fields of drinking water, energy, and vocational training for a historic amount of 215 MEUR (approx. 235 MUSD) on the 18th of January 2024 during the official visit to France of Samdech Moha Bovor Tipadei Hun Manet, Prime Minister of the Kingdom of Cambodia.
Since its opening in 1993, AFD has played a major role in supporting the development of Cambodia, with financing totalling more than 1,5 billion Euros, including the new commitments for 2023.
These three sovereign loans represent a doubling of AFD’s annual commitments to Cambodia and reflect the quality of the ties between the two countries. They will support Cambodia’s transition to an emerging, inclusive and sustainable economy in three priority sectors, which aligned with Cambodia’s Pentagon Strategy Phase 1:
In the field of drinking water, AFD financing of 120 MEUR (approx. 131 MUSD) will enable the addition of a third phase to the Bakheng water treatment plant managed by PPWSA. With a total cumulative capacity of 600,000 m3/day, this facility will be one of the largest water production facilities in Southeast Asia and a leading global infrastructure in terms of the quality of its construction, technology, energy efficiency and quality water. This will respond to the growing needs of the residents and businesses of Phnom Penh and its suburb areas. An additional AFD financing facility of 80 MEUR is planned for 2024 to densify, renovate and extend the transmission and distribution network. In addition, a grant from the European Commission is under consideration for approval in 2024 to complement this loan to reinforce the social and environmental impact and the sustainability of the investments. This Team Europe project is one of the European Union’s Global Gateway Flagship for Cambodia being launched in 2024.
In the field of energy, AFD loan financing of 70 MEUR (approx. 76 MUSD) will allow EDC to make its transmission network more reliable and efficient with the deployment of the first digital substation in Cambodia. In line with the national ambition to increase the penetration of renewable energy by up to 70% by 2030, the project will also equip EDC with a large battery storage capacity (75 MWh – amongst the biggest BESS capacities in the region) to accelerate the integration of intermittent renewable energy sources such as solar and wind. The Cambodian national grid will be greener and more reliable for its consumers.
In the field of vocational training, AFD loan financing of 25 MEUR (approx. 27 MUSD), in addition to the 80 MUSD loan funding provided by the Asian Development Bank, will develop through MLVT high-level vocational training, strengthen human capital, and support the transformation of Cambodia’s economy towards an industry-driven economy supported by technology and science. It will train Cambodians in the jobs of tomorrow, particularly green jobs and digital professions, as part of the Global Gateway Flagship in Cambodia’s “Partnership in Education for green and digital jobs”.
In this remarkable event, H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance of the Kingdom of Cambodia, has taken the opportunity to share the long-standing and solid bilateral relations provided by AFD throughout the years.
“As Cambodia has moved past the early stages of development, we are on the right track of working on the fields of water supply, energy and human development, where development challenges can be tackled to make positive impacts to our economic growth. With the strong development support from AFD, Cambodia’s economy has risen, overcome global challenges, and will continue to move forward to build more successful stories.” H.E. Ros Seilava address.
The Ministry of Economy and Finance of the Kingdom of Cambodia will continue to actively support the development of top priority sectors including but not limited to innovative, digital and high-tech industries involving innovation or R&D and incentivized to attract investment from the private sector to Cambodia, in line with the Cambodia’s Pentagon Strategy Phase 1. We look forward to seeing new collaborations ignited to build a strong, robust, and quality living environment for the people of Cambodia.” He added.
“On the occasion of AFD’s thirtieth anniversary in Cambodia, these three projects mark a new stage in the relationship between our two countries, demonstrating AFD’s desire to intensify its partnership with Cambodia to support sustainable and climate-resilient infrastructures as well as human capital development in the Kingdom. In 2024, AFD will continue its action in the fields of energy, water and sanitation, human resources and rural development for the benefit of the Cambodian people.” Marie Helene Loison, Deputy Chief Executive Officer of AFD, declared.
Source by: Embassy of France in Cambodia