China may fund Cambodia-Vietnam rail

A tuk-tuk crosses railway tracks on the outskirts of Phnom Penh last year. Photograph: Heng Chivoan/Phnom Penh Post

Wednesday, 13 June 2012
Rann Reuy
The Phnom Penh Post

Cambodia was in discussions with the Chinese government on funding for a 250-kilometre stretch of rail line between Phnom Penh and Vietnam, in what Cambodian officials yesterday called a move away from a “complicated” Asian Development Bank loan.

Va Sim Sorya, director general at the Ministry of Public Works and Transportation, said the government could do without the requirements tagged to ADB loans, and fund the project with up to US$600 million in Chinese backing.

“China doesn’t have so many conditions, but Chinese technicians are still well-studied,” he said yesterday at a workshop on infrastructure, although he did not specify which conditions were undesirable.

Interest rates on ADB concessional loans averaged an annual 1.32 per cent after grace periods, according to data compiled by NGO Forum for Cambodia last year.

China’s concessional lending held the highest rates from any institution or country at an average 1.83 per cent per year.

ADB provides Cambodia $69 mil. to improve provincial roads

February 23, 2012

PHNOM PENH (Kyodo) -- The Asian Development Bank has provided $69 million for Cambodia to make major upgrades of provincial roads in some of the country's poorest provinces, according to an ADB statement Wednesday.

The Provincial Roads Improvement Project, financed by a $52 million loan from ADB Special Funds and a $17 million loan and grant from the Pilot Program for Climate Resilience, will be used to rehabilitate about 150 kilometers of unpaved provincial roads in Kampong Chhnang, Kampong Speu, Prey Veng and Svay Rieng provinces.

"Efficient transport is critical for economic growth. This initiative will provide safe, cost-effective and year-round access to markets, employment centers and social services for poor and remote communities," ADB Vice President Stephen P. Groff said during signing for the assistance.

ADB lends 15 mln USD to Cambodia for CPP CORRUPTION financial reform

December 20, 2011
Xinhua

The Asian Development Bank (ADB) on Tuesday signed up to lend Cambodia 15 million US dollars to promote reforms of the country's finance sector.

The agreement was signed between Cambodia's Deputy Prime Minister Keat Chhon, Minister of Economy and Finance, and Peter Brimble, ADB senior country economist for Cambodia.

The loan will be used to fund the subprogram I of the Financial Sector Program III (FSP III) whose key activities include improving regulatory frameworks and supervision of banks and microfinance institutions to better support a fast-changing domestic market and developing interbank transactions, said the ADB's press release on Tuesday.

ADB launches $613m aid plan for Cambodia

Jul 7, 2011
AFP

PHNOM PENH - THE Asian Development Bank (ADB) said on Thursday it will invest around US$500 million (S$613 million) in Cambodia over the next three years to reduce poverty, mainly through infrastructure and agriculture projects.

The soft loan forms part of a new 'country partnership strategy' for 2011 to 2013 between the government and the bank, said Peter Brimble, senior country economist for ADB in Cambodia.

Under the new plan, the ADB aims 'to reach out to Cambodia's poor' with a focus on agribusiness enterprises and rural-to-urban transport links, Mr Brimble told reporters at a press conference in the capital Phnom Penh.

$10M loan to cut poverty or to enrich corrupt Hun Xen's officials?

ADB provides $10M loan to Cambodia to cut poverty

Microfinance Focus, Nov. 26, 2009: The Asian Development Bank’s Board of Directors has approved a $10 million loan for Cambodia’s economic reforms program. It covers costs linked to implementing reforms, and also provides the government with budgetary support to help ease the effects of the global economic downturn. The latest reforms are part of the ongoing ADB second sector program support – which began in 2007 – to assist Cambodia to further develop its financial system.

Cambodia is implementing a series of reforms designed to modernize and deepen its financial system in order to support growth, reduce poverty and make the country more resilient in the face of external shocks.

Cambodia posted real economic growth of more than 9% between 2001 and 2008, and cut overall poverty. However, external shocks, such as the global financial crisis of 2008, which has pressured garment exports, tourism and foreign investment, threaten to undermine that progress. An effective financial system that can readily mobilize finance, channel it into productive areas, including to rural areas through microfinance, and manage risks, can help mitigate the impact of external turmoil and keep growth and poverty reduction on track.

“Cambodia has taken many positive steps to develop its financial sector since the instability of the 1970’s and 1980’s, but still faces policy gaps, capacity constraints and other challenges,” said Samiuela Tukuafu, Senior Financial Sector Specialist in ADB’s Southeast Asia Department. “The ongoing program builds on earlier actions to improve the legal and regulatory environment, to boost sector capacity, to improve disclosure standards and financial transparency, and to build up infrastructure.”

These measures are designed to sustain the momentum of structural reforms while strengthening capacities for effective surveillance against the backdrop of knock-on effects of the global economic crisis. They include strengthening of bank supervision capacities, the upgrading of the payments and settlement system, establishment of a financial intelligence unit by National Bank of Cambodia to support efforts to combat money laundering, installation of an integrated IT system to link the core operations of the central bank, further steps to improve the microfinance sector, and the development of a commercial disputes resolution mechanism.

ADB’s loan from its concessional Asian Development Fund has a 24-year term, including a grace period of eight years, with an interest rate of 1% per year during the grace period and 1.5% for the rest of the term. The National Bank of Cambodia is the executing agency for the current program phase which runs from January 2009 to December 2009.

ADB, S.Korea Support Cambodia to Improve Cross-Border Road Links

2009-08-25
Xinhua

The Asian Development Bank (ADB) and the Republic of Korea are supporting road and border improvements in Cambodia to help reduce poverty, increase economic opportunities, and boost ongoing efforts to strengthen trade and tourism in the Greater Mekong Subregion (GMS), a press release issued by ADB on Tuesday said.

ADB's Board of Directors approved a loan equivalent to 16.3 million U.S. dollars for the project which will rehabilitate 113 kilometers of a national road in the northwest of the country, and upgrade a cross-border facility with Thailand. The Ministry of Strategy and Finance of Korea is extending a loan equivalent to 25. 6 million U.S. dollars through its Economic Development and Cooperation Fund (EDCF).

The pot-holed gravel road, that is impassable in the wet season due to flooding, cuts through two of the poorest provinces in the country -- Banteay Meanchey and Oddar Meanchey. It links up with another major route which is a key conduit for goods and people between northwest Cambodia and northeast Thailand, and also forms a feeder connection to the GMS east-west corridor.

Roads are the lifeblood of transport in the GMS but poor surfaces raise costs, cause lost economic opportunities and contribute to high accident rates. The upgraded road and border facility will reduce travel times, improve traffic safety, increase access to markets, and provide new job and business opportunities. It will be another step to strengthen connectivity and develop economic corridors across the GMS -- a bloc of six nations committed to closer ties that support sustainable growth, boost employment and reduce poverty.

"The project will support the GMS strategy by improving connectivity between Thailand and Cambodia, thereby enhancing subregional transport and trade," said Shihiru Date, transport specialist in ADB's Southeast Asia Department.

The improved facilities are expected to aid cross-border tourism as the restored road connects to a key east-west route to Siem Reap site of the world famous Angkor Wat temple. Opportunities for contract farmers, who cultivate high-value fruit for export to neighboring countries should also expand, while the all-weather surface will improve access to health and education facilities. The project will include an HIV prevention and anti- human trafficking program, as new cross-border roads represent a potential threat for the spread of communicable diseases, and the trafficking of women and children.

ADB's loan, from its concessional Asian Development Fund, comprises 34 percent of the total project cost. It has a 32-year term with an eight year grace period carrying a one percent interest charge, and 1.5 percent for the balance. The Government of Cambodia will contribute counterpart funds of six million U.S. dollars, while the Ministry of Public Works and Transport will be the executing agency.

The estimated completion date for the project is December 2013.

To clean up Cambodian financial system, Cambodia needs to rid herslef of the corrupt CPP gov't officials first ... not more ADB loan

ADB tips in to bolster Cambodian financial system

Friday 5th December, 2008
Malaysia Sun

The Asian Development Bank (ADB) is extending a $10.3 million loan to assist Cambodia in developing it's financial sector.

The loan will fund the implementation of a second subprogram under the Financial Sector Program II (FSP II) Cluster that was approved in December 2007. The program cluster comprises four subprograms to be implemented over a four-year period to 2010. A separate $300,000 grant will help implement some of the key triggers of the third subprogram.

The overall goal of the program is to put in place a sound, market-based financial system by maintaining the momentum for reform activities aimed at building confidence and financial intermediation, enhancing resilience and efficiency, and promoting good governance. This is in line with the government’s efforts to sustain economic growth and reduce poverty.

“With the recent global financial crisis, Cambodia needs more than ever to have a sound and efficient financial system that will contribute towards sustaining broad-based economic growth,” said Samiuela Tukuafu, Senior Financial Sector Specialist of ADB’s Southeast Asia Department. “An efficient and sound financial system will help reduce poverty by lowering the cost of doing business, increasing job opportunities, and extending the outreach of services to poor and rural areas.”

The first Financial Sector Program Cluster (2001 – 2007) has yielded encouraging results as Cambodia’s financial sector continues to deepen with more services being introduced. Credit to the private sector has increased to 22.9% of gross domestic product as of June this year compared to 6.5% of GDP in 2000. Total deposits also rose to 25.8% of GDP in June 2008 from 9.2% in 2000. The government is working towards establishing a capital market in the near future.

The program will focus on improving confidence and financial intermediation by upgrading the payments, clearance, and settlement systems; improving public financial disclosures and establishing a credit information bureau; establishing a registry of tradable government securities; and improving the outreach of microfinance institutions.

To maintain stability in the financial sector, the law on banking and financial institutions and related regulations are being updated; the supervision of banks and microfinance institutions is being strengthened; and a new law on commercial contracts is being developed.

The program will also promote good governance by implementing international initiatives on anti-money laundering and counter-financing of terrorism; promote corporate governance and transparency in the insurance sector; establish commercial dispute resolution mechanism; and increase the number of qualified national accountants and auditors. A fully computerized management information system for the National Bank of Cambodia to enhance its efficiency is one of the key activities of the program.

ADB has been supporting the development of Cambodia’s financial sector since 1999.

ADB Extends Assistance for Cambodia's Financial Sector Development

05/12/2008
finchannel.com

The FINANCIAL -- The Asian Development Bank (ADB) is extending a $10.3 million loan to assist in the ongoing development of Cambodia's financial sector and ensure a sound, efficient, and market-oriented financial system.

The loan will fund the implementation of the second subprogram under the Financial Sector Program II (FSP II) Cluster that was approved in December 2007. The program cluster comprises four subprograms to be implemented over a four-year period to 2010. A separate $300,000 grant will help implement some of the key triggers of the third subprogram.

The overall goal of the program is to put in place a sound, market-based financial system by maintaining the momentum for reform activities aimed at building confidence and financial intermediation, enhancing resilience and efficiency, and promoting good governance. This is in line with the government’s efforts to sustain economic growth and reduce poverty.

“With the recent global financial crisis, Cambodia needs more than ever to have a sound and efficient financial system that will contribute towards sustaining broad-based economic growth,” said Samiuela Tukuafu, Senior Financial Sector Specialist of ADB’s Southeast Asia Department. “An efficient and sound financial system will help reduce poverty by lowering the cost of doing business, increasing job opportunities, and extending the outreach of services to poor and rural areas.”

The first Financial Sector Program Cluster (2001 – 2007) has yielded encouraging results as Cambodia’s financial sector continues to deepen with more services being introduced. Credit to the private sector has increased to 22.9% of gross domestic product as of June this year compared to 6.5% of GDP in 2000. Total deposits also rose to 25.8% of GDP in June 2008 from 9.2% in 2000. The government is working towards establishing a capital market in the near future.

The program will focus on improving confidence and financial intermediation by upgrading the payments, clearance, and settlement systems; improving public financial disclosures and establishing a credit information bureau; establishing a registry of tradable government securities; and improving the outreach of microfinance institutions.

To maintain stability in the financial sector, the law on banking and financial institutions and related regulations are being updated; the supervision of banks and microfinance institutions is being strengthened; and a new law on commercial contracts is being developed.

The program will also promote good governance by implementing international initiatives on anti-money laundering and counter-financing of terrorism; promote corporate governance and transparency in the insurance sector; establish commercial dispute resolution mechanism; and increase the number of qualified national accountants and auditors. A fully computerized management information system for the National Bank of Cambodia to enhance its efficiency is one of the key activities of the program.

ADB has been supporting the development of Cambodia’s financial sector since 1999.

Hun Sen thanks ADB for loans that Cambodians will have to pay back for several generations to come

(From top) Prime Minister Hun Sen (center) witnessing agreement signing by ADB President Haruhiko Kuroda (left) and Finance Minister Keat Chhon (right) on 18 February; Haruhiko Kuroda and Keat Chhon exchanging documents; Hun Sen and Haruhiko Kuroda at talks after the signing ceremony (Television Kampuchea, 18 Feb)

Cambodian PM Thanks ADB President for Cambodia Development Funds

19 Feb 08
Television Kampuchea (TVK)

On 19 February, Cambodian Government-run Phnom Penh Television Kampuchea in Cambodian at 0600 GMT carried a video report, following its midday newscast, on Cambodian Prime Minister Hun Sen "witnessing the signing between His Excellency [HE] Keat Chhon, state minister and minister of Economy and Finance, and HE Haruhiko Kuroda, president of the Asian Development Bank [ADB], at the Foreign Ministry on the afternoon of 18 February of five agreements on cooperative financing projects, with a total amount of US$82.7 million," to repair and restore National Road 33, finance development programs, improve road infrastructure, and promote education and rural development in the Tonle Sap region.

The announcer says that after the signing ceremony, Prime Minister Hun Sen held "cordial working talks" with ADB President Haruhiko Kuroda. He said the "objectives of the five agreements we have signed have not only contributed to restoring and improving physical infrastructures in a variety of sectors, but developing social infrastructures in Cambodia as well. It is not just that, the five agreements also have the definite goal of contributing to reducing poverty" and achieving Cambodia's "development goals set in the 2006-2010 national development strategic plan."

The announcer says that on behalf the Royal Government of Cambodia and Cambodian people, Hun Sen "profoundly thanked the ADB for having provided funds for the development of Cambodia's economy so far." He added that the RGC was determined to use the credit with "most transparency and efficiency and to the targets."

The announcer says that for his part, Haruhiko Kuroda "highly acclaimed and extolled Cambodia's economic growth," saying the ADB would "further consider all sorts of possibilities to continue to provide funds for restoring and redeveloping Cambodia's economy."

Hun Sen's reminder: Cambodia needs $500 million to build the railroad line between Cambodia and Vietnam

$500 million needed to link Cambodia to Vietnam?
Cambodia's Prime Minister Hun Sen speaks at the ground breaking ceremony of a new railway at Serey Sophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 km of railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea

Railway gets a new life

18 Feb 2008
By Ky Soklim
Cambodge Soir
Translated from French by Luc Sâr

On Monday morning, the authorities have officially inaugurated the restoration site for a railroad line. The restoration will involve 552 km of railway, and will cost $73 million. The Asian Development Bank (ADB), OPEC, Malaysia, and the Cambodian government will finance this ambitious project.

Seriously damaged by the civil war, railways in the kingdom will find a new youth. On Monday 18 February, in the province of Banteay Meanchey, the government has officially proceeded to the launch of the restoration work for a portion of the network, covering a distance of 552 km. These railways will connect Phnom Penh to Poipet (386 km) and Phnom Penh to Sihanoukville (266 km). The restoration of the Phnom Penh-Sihanoukville line will take 23 months, whereas the Phnom Penh-Poipet line will take 22 months.

The total cost will be $73 million. The Cambodian government will finance $15.2 million, the ADB $42 million, OPEC $13 million, and Malaysia $2.8 million. Haruhiko Kuroda, ADB president, is satisfied about this project: “This even shows the importance of the government policy for the return to prosperity in the kingdom.”

The Australian company Toll Holding obtained a 32-year concession for the railway network in Cambodia [KI-Media: Could this explain the presence of Kith Meng at the inauguration?]. A French-Belgium-Thai consortium will take care of the restoration project. The authorities hope that these improvements will lead to development of the transport of goods.

“The railways play an important role in the trade between our country and Thailand. They are of main importance as part of the trans-border railroad system,” Sun Chanthol, the minister of public works and transport, explained. This line will link, in 2015, Singapore to Kunming in China, crossing Thailand, Cambodia, Vietnam, Burma and Laos. Hun Sen took care to remind during the inauguration that: “$500 million is needed to build the railway line between Cambodia and Vietnam.”

ADB Breaks Ground on Rail Project

Cambodia's Prime Minister Hun Sen (L) speaks with Asian Development Bank (ADB) President Haruhiko Kuroda at the ground breaking ceremony of the new railway at Sisophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 km of railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea
[KI-Media: Behind Hun Sen is Kith Meng, behind Haruhiko Kuroda is 4-star general Ke Kim Yan]

People shield themselves from the dust as the helicopter of Cambodia's Prime Minister Hun Sen takes off after the ground-breaking ceremony of a new railway at Sisophon town in Banthey Meachey province, 469km (291 miles) northwest of Phnom Penh, February 18, 2008. Cambodia launched on Monday a $73 million project for the restoration and reconstruction of over 600 km of railway track which will become part of the rail transportation route linking Singapore, Malaysia, Thailand and Vietnam to Kunming, China. REUTERS/Chor Sokunthea

By Chun Sakada, VOA Khmer
Phnom Penh
18 February 2008

The Asian Development Bank and government officials broke ground on a $73 million railway project Wednesday, beginning a plan to repair the ailing rails from Bantey Meanchey province to Sihanoukville.

The goal of the 650-kilometer rehabilitation is to connect Poipet to Phnom Penh and Phnom Penh to Sihanoukville by 2010. The first stretch will be the 48 kilometers from Poipet to Sisophon.

"Most important is the connection of Cambodia's interior, and connection of Cambodia to Thailand, which was the vision of King Father Norodom Sihanouk," Prime Minister Hun Sen said at Monday's ceremony, which was broadcast on national radio.

The ADB has pledged $42 million for the project, followed by OPEC with $13 million, the Cambodian government with $15.7 million and the Malaysian government with $2.8 million.

ADB President Haruhiko Kuroda said at the ceremony the railway was one of the last steps in the creation of a trans-regional rail network that will connect Singapore to China, across Southeast Asia.

Railway service in Cambodia consists now of homemade trolleys made of bamboo and wood, he said.

"The event marks a major milestone in the royal government's policy to revitalize the country's economy and bring prosperity to its population," he said.

"The railway connection to Thailand's railway network and Asia, starting from Sisophon and Poipet, is the main factor to push the Cambodian socio-economic development, to rapidly reduce the poverty of the Cambodian people," Minister of Transport and Communication Sun Chanthol said.

Cambodia begins restoration of decades-old railway

PHNOM PENH, Feb. 18-(Kyodo), Cambodia began Monday restoring a 652-kilometer stretch of its decades-old railway system to enhance domestic and international trade, reduce transport costs and ease road traffic.

The $73 million rehabilitation project is expected to be completed in 23 months, according to Sun Chanthol, Cambodia's minister of Public Works and Transportation.

Of the outlay, the Asian Development Bank has provided $42 million in concessional loans, $13 million came from the Organization of Petroleum Exporting Countries as a grant, $2.8 million from Malaysia for iron materials and $15.2 million from the Cambodian government, he said.

The launch was presided over by Prime Minister Hun Sen and Haruhiko Kuroda, president of the ADB.

"This is one of the last steps in the creation of a regional railway that will stretch from Singapore to Beijing," Kuroda said at the inauguration ceremony in Sisophon near Cambodia's border with Thailand. "Soon, trains will be running from Singapore to Sihanoukville."

The project will rehabilitate two existing railways, 386 km from Phnom Penh to Poipet on the border with Thailand and another 266 km from Phnom Penh to Sihanoukville on the southwest coast.

The two routes were built in 1931 and 1960, respectively.

Railway services in Cambodia are now intermittent and unofficial trolleys with bamboo floors operate along portions of the railway.

The new project will rehabilitate 604 km of track and reconstruct another 48 km near the Thai border that was destroyed during wartime.

A statement by the ADB said in addition to supporting the repair of tracks and bridges, the bank is providing technical assistance to Cambodia to restructure the railway by appointing an international railway firm to operate, maintain and invest in the railway over the next 30 years.

"Investing in rail upgrade, maintenance, and better service delivery will help revitalize Cambodia's railways, enhance internal commerce and international trade, reduce transport costs, and ease road traffic," the ADB said.

The railway project is a vital component of the Greater Mekong Subregion's southern corridor that links Thailand, Cambodia and Vietnam.

Sun Chanthol said that once rehabilitation is completed, trains will operate with a speed of at least 50 km per hour.

Currently, Cambodian trains operate at speeds as low as 15 kmph.

Cambodia to get 7 mln usd loan for transmission line to import electricity - ADB

01.31.08

BANGALORE (Thomson Financial) - The Asian Development Bank (ADB) said it will provide a 7 mln usd loan without government guarantee to Cambodia for building transmission lines to import electricity from Thailand, including to the tourism hub of Siem Reap, and the growing cities of Battambang and Banteay Meanchey where there have been power shortages.

The bank said the move will be a boost for the economy of northwest Cambodia, not just in tourism but also in agriculture, services and manufacturing.

ADB's financial assistance is being made to the (Cambodia) Power Transmission Lines Co Ltd (CPTL), a private Cambodian company.

The bank's assistance will go toward the estimated 34 mln total project cost and the balance of the funding is being provided through equity and loans from the Export-Import Bank of Thailand, Foreign Trade Bank of Cambodia, and a wholly owned subsidiary of Gramercy Advisors/Arco Capital Management Family of Funds.

The 115-kilovolt power lines will connect with Thailands national grid at the border and will then run about 221 kilometre into Cambodia, to Siem Reap, home to the famed Angkor Wat temple, and Battambang, an important agricultural centre.

In addition to connecting the major towns, the new lines will also provide opportunities to wire rural communities along the route, ADB said.

The high-voltage grid lines will be the first to be privately owned in the Greater Mekong Subregion. It is also the first ADB private sector infrastructure project in Cambodia.

ADB to provide Cambodia 31.7 mln usd for financial system, infrastructure

12.06.07

MUMBAI (Thomson Financial) - The Asian Development Bank said it is providing a 10 mln usd loan and a 1.7 mln usd grant to assist Cambodia in the development of a sound, efficient and market-oriented financial system as part of efforts to sustain economic growth and eradicate poverty.

The ADB said the programme will support the Cambodian governments continued efforts to strengthen the financial sector by promoting legal and regulatory reforms, capacity building, improved disclosure standards and financial transparency, and the establishment of key financial infrastructure.

In a separate release, ADB said it is providing 20 mln usd to develop and upgrade infrastructure and improve livelihood opportunities in Tonle Sap, the most impoverished region in Cambodia.

The Tonle Sap Lowlands Rural Development project will be funded by a 10.1 mln usd loan and 9.9 mln usd grant from the ADB while Cambodia will provide 3 mln usd with the project beneficiaries contributing 1 mln usd to complete funding for the project, the bank said.

The bank said the project will improve rural infrastructure to move products of the region to market, distribute agricultural inputs and improve farm yields by providing new irrigation facilities and improving existing ones.

Investors Sought to Straighten Out Neglected Railway

Chun Sakada, VOA Khmer
Original report from Phnom Penh
22 October 2007

The government is seeking private investors to help upgrade the Royal Railways with a $50 million Asia Development Bank loan, officials said Friday.

The loan would be used to pay investors for upgrading a link from Sihanoukville, on the coast, to Phnom Penh to Poipet, on the Thai border.

The initiative stems from a directive signed in September opening investment for private bidding in public projects, where concession owners would have the right to build, maintain, repair and develop Cambodia's railway.

Following decades of civil war and neglect, nearly 650 kilometers of rail have become unsafe and unreliable, hobbling the country's economic growth.

An upgrade to Cambodia's railway system would increase the transport of heavy goods, providing big returns in the economy, Ministry of Public Work and Transport undersecretary Touch Chan Kosal told VOA Khmer.

"We will upgrade our railways in the interest of our national economy," he said. "The railway can provide transportation for heavy goods, to avoid damage to national highways."

Cambodia has in recent years pushed to improve its roadways, but those projects are often undermined by overloaded trucks that leave highways in disrepair.

As investment companies look for transportation service to feed the country's development, the railway could be more in demand.

Royal Railways business director Rith Doeun said the transport of cement and other goods by rail over the last three years reached up to 30,000 tons per month.

"What I think is that there might be many goods that people would like to transport by rail, especially containers that can be transported from Sihanoukville, and most of those goods could be carried by train," he said. "But presently we need locomotives and train cars, and the railways are old."

ADB helps wire Northwest Cambodia

2007-06-29
Infrasite News (Netherland)

Manila, Philippines - A major electricity shortage in northwest Cambodia, including around the tourism hub of Siem Reap, is being fixed with the help of an $8 million loan from the Asian Development Bank to build power lines that will import electricity from neighboring Thailand.

The development will be a boost for the regional economy, not just in tourism but also in agriculture, mining and manufacturing. As demand for power grows, it will also reduce emissions as businesses will not have to invest in new diesel-powered electrical generators.

“This will give the region access to cheaper electricity and a reliable supply,” said Tomas A. Norton de Matos, a Senior Structured Finance Specialist with ADB. “It is also promoting regional cooperation because the electricity will be supplied by Thailand. We worked closely with ThaiExim Bank to enable this project, which also includes trade in Thai equipment and services, to proceed.”

ADB’s Board of Directors agreed on June 27 2007 to loan the money to the (Cambodia) Power Transmission Lines Co. Ltd, a private Cambodian company. The high-voltage grid lines will be the first to be privately owned in the Greater Mekong Subregion. It is the first ADB private sector infrastructure project in Cambodia.

“We are pleased to be investing in Cambodia’s critical transmission infrastructure and to have worked closely with Cambodian and Thailand authorities, and all our partners, in this respect,” said Ly Say Khieng, Chairman and CEO of the company.

Northwest Cambodia, like the rest of the country, suffers from insufficient and unreliable power. There is no national grid and electricity is generated almost exclusively by small diesel plants that generate emissions. This hinders Cambodia’s ability to attract investment and promote sustainable economic activities, which are critical to reducing poverty.

Electricity in Cambodia is among the most expensive in the region because of the disaggregated and isolated small-scale systems.

Siem Reap is home to the famed Angkor Wat temples and is an important and growing tourism center. Many hotels in the area rely on their own power generators. There are similar power shortages in neighboring Battambang, an important agricultural center, and Banteay Meanchey, which supports manufacturing and trading activities.

The 115kV power lines will connect with Thailand’s national grid at the border. They will then run about 221 kilometers mainly alongside National Road 5 and National Road 6 to Siem Reap and Battambang. In addition to connecting the major towns, the new lines will provide opportunities to wire rural communities along the route for electricity.

Work on the project has already started and the first section to Siem Reap is expected to be completed this month or next. The second section to Battambang is scheduled to be completed a couple of months later.

ADB’s $8 million loan will go toward the estimated $32 million total project cost. The balance of funding is being provided through equity, as well as loans from the Export-Import Bank of Thailand and local Cambodian banks.

Antoher $42 mln debt to the ADB for the next Khmer generation to pay

March 07, 2007
ADB approves 42 mln USD of loan to restore railway for Cambodia

The Asian Development Bank (ADB) has approved 42 million U.S. dollars of loan for Cambodia to restore its railway, local media said on Wednesday.

This is part of the efforts to complete the ASEAN (the Association of Southeast Asian Nations) railway network which also connects China, said daily newspaper the Rasmey Kampuchea.

The agreement of providing the loan was signed by Minister of Finance and Economy Keat Chhon and C. Lawrence Greenwood, vice- president of ADB here on Monday.

The loan will be spent on restoring 254 km of railway road from Phnom Penh to seaport city Sihanoukville and also on 383 km of railway from Phnom Penh to Poipet town of Banteay Mean Chey province next to the border with Thailand, the paper quoted Keat Chhon as saying.

The whole budget for restoring railway is worth about 73 million U.S. dollars, with 42 million from ADB, 13 million from the OPEC (the Organization of Petroleum Exporting Countries) Fund, 2.8 million as grant aid from Malaysia and the rest 15.2 million from the Cambodian government, he added.

Source: Xinhua

ADB has offered 10 mln USD for fishery development in Cambodia's Tonle Sap Lake

March 06, 2007

The Asian Development Bank (ADB) has provided some 10 million U.S. dollars of loan in the past years to empower the fishery communities in the Tonle Sap Lake area, officials said Monday.

"We got about 2 million U.S. dollars (in revenues) from fresh water fish products each year from the lake," partially as result of the help from ADB, said Nao Thouk, director of fisheries department of Ministry of Agriculture and Fisheries.

Thanks to years of consistent development with the help of ADB, an average family in the Tonle Sap Lake area can now catch some 600 kg to 800 kg of fish each year and over 1 million people directly benefit from the lake, he said on the sidelines of a national forum on the development of the Tonle Sap Lake.

The forum was organized by ADB and the Cambodian government and attended by about 300 people, including diplomatic corps and top government officials.

Also at the forum, C. Lawrence Greenwood, deputy president of ADB, said that Cambodians' fortunes depend on the lake's reliable ebb and flow and it provides the daily sustenance and livelihood for over 1 million people, many of them among the poorest in the kingdom.

According to official statistics, the lake area boasts about 200 kinds of fish, 42 kinds of reptiles, 225 species of birds, 44 types of mammals and 200 kinds of plants.

Source: Xinhua