EC helps Cambodia implement development projects [with $33.3 million]

2007/11/29

Phnom Penh (VNA) – The European Commission (EC) has pledged to grant a non-refundable aid of 23.1 million euro (roughly 33.3 million USD) for socio-economic development projects in Cambodia.

An agreement on the aid package was signed on November 28 by Cambodian Minister of Economy and Finance Keat Chhon and EC’s representative Rafael Dochao Moreno.

Under the agreement, the sum will be used to socio-economic development programmes in the 2006-2010 period, especially those in poverty reduction.

Over the past few years, these projects have been received financial support from international organisations, among them were 15 million USD from the World Bank and 1 billion Japanese Yen from the Japanese Government, Cambodia’s Ministry of Economy and Finance said.

Japan to grant over 1 mln USD to Cambodia for health, education [... and to the pocket of gov't officials]

August 02, 2007

Japan has agreed to grant over one million U.S. dollars in equipment and funds to help develop Cambodia's de-mining capability and education and health sectors, local newspapers reported Thursday.

The agreement was signed by Japanese Ambassador to Cambodia Katsuhiro Shinohara and representatives of six recipient organizations during a ceremony at the Japanese Embassy in Phnom Penh, the Koh Santepheap newsapaper said.

According to the signed contract of the KUSANONE Grant, Boeung Trabek and Wat Koh Lower Secondary Schools in Phnom Penh will receive 2,355 sets of second-hand school desks and chairs transported from Japan; four primary schools in Phnom Penh's Russey Keo district 1,900; six primary schools in Dangkor district 2,190; and five primary and one lower secondary school in Prey Veng province 2,935, it said.

One consultation ward in Prey Kabas Referral Hospital in Takeo Province will be constructed using funds from the grant while de-mining teams in Battambang and Preah Vihear provinces will receive 732,723 U.S. dollars, the Kampuchea Thmey newspaper said.

Japan has provided KUSANONE Grants, assistance for grassroots human security projects, to Cambodia since 1991. Over the years, Cambodia has received KUSANONE Grants worth more than 36 million U. S. dollars in total to carry out 392 projects, it added.

Source: Xinhua

Cambodia Keeps Taking, Gives Little

A Cambodian beggar with her sister walks in a market in search of alms in the capital city Phnom Penh. (Photo: Khem Sovannarak/AFP/Getty)

Friday, Jun. 22, 2007
By Hannah Beech/Bangkok
Time Magazine (USA)

Why do the rich nations keep funneling millions of dollars every year to a corrupt country like Cambodia? Each summer, at around this time, for more than a decade, international donors have pledged huge sums to prop up the impoverished Southeast Asian nation. The donors unveil a goody bag of financial aid contingent on the country tackling endemic problems like corruption, human-rights violations and environmental degradation. And each year, like ritual, longtime Cambodian Prime Minister Hun Sen dutifully pledges to clean up the government's act. Alas, also like ritual, little or nothing happens. Yet somehow the entire ceremony repeats itself year after year.

On Wednesday, June 20, foreign donors — a collection of foreign governments, multinational banks and various U.N. agencies — promised to funnel $689 million of aid to Cambodia, a 15% increase from last year and an amount roughly equivalent to half the nation's annual budget. This year, they did issue statements chastising the Hun Sen government for failing to adequately battle widespread graft. Cambodia ranks No. 151 out of 163 nations surveyed in Transparency International's 2006 government corruption index. Addressing donor representatives gathered in the Cambodian capital Phnom Penh this month, Hun Sen promised that long-delayed anti-corruption legislation would be passed "as soon as possible." The statement was a virtual carbon copy of what he had pledged last year.

Foreign aid has long been employed as a political tool, with varying levels of success. Rich economies get to feel good about sharing their wealth with the less fortunate. At the same time, western nations dole out cash to poorer economies in hopes of encouraging budding democratization efforts. But if anything, Cambodia has continued to backslide. A Hun Sen-backed coup in 1997 removed Co-Prime Minister Prince Norodom Ranariddh. Opposition party members are regularly harassed. And a July 2006 deadline imposed by Hun Sen himself for introducing a draft of anti-corruption legislation passed with no evidence of any such document.

The country's economy has grown (more than 10% last year, due in part to tourism and the textile industry). But wealth appears to be concentrated in the hands of the few. Earlier this month, the international watchdog organization Global Witness released the findings of a three-year investigation that accuses a network of Hun Sen's relatives and friends of having made tens of millions of dollars from illegal logging. (Several of those implicated by Global Witness have denied the allegations, and the watchdog's report itself has been banned from domestic distribution by the Cambodian government.) In the report, Global Witness castigates the international donor community for facilitating what it labels a deeply corrupt Cambodian ruling class: "Donor support has failed to produce reforms that would make the government more accountable to its citizens. Instead, the government is successfully exploiting international aid as a source of political legitimacy."

The trouble is that Cambodia does not have to depend only on Western donors to help it patch together its economy and government. There is China. Unlike other foreign governments, China puts few strings on its aid, and its generosity in doling out funds for the Cambodian government now rivals Western munificence. Last year, Hun Sen publicly praised Cambodia's "most trustworthy friend" China for its pledge of $600 million in aid and loans; this month, the Cambodian Prime Minister went on to thank the Communist giant for giving money without "order[ing] us to do this or that" — presumably in contrast to pesky requests for reform from other international benefactors. "China has changed the game," says Sok Hach, director of the independent Economic Institute of Cambodia. "Their attitude toward aid has decreased the leverage of the rest of the world."

Further diluting international influence is the potential of oil and gas revenues to transform Cambodia's still largely agrarian economy. Two years ago, Chevron announced the discovery of offshore oil reserves in Cambodia. If natural-resources dollars do start flowing in 2010, as some expect, the country may for the first time enjoy a major revenue source that could help it stand on its own feet. Yet, in countries like Nigeria, oil money has only served to enrich a tiny minority while leaving the rest of the country impoverished. And the alternate source of income may only make it more difficult for Western efforts to tie aid to improved Cambodian governance.

Nevertheless, some human-rights groups blame the donor community for their consistent unwillingness to pull aid when their pleas for reform aren't met. "The donors' list of conditions hardly changes over time, and the government simply ignores them year after year," says Brad Adams, Asia director of New York-based Human Rights Watch. "Hun Sen continues to run circles around the donors, making the same empty promises every year and laughing all the way to the bank."

Promises, promises

Logged off (Photo: Global Witness)

Jun 21st 2007
BANGKOK AND PHNOM PENH
The Economist

Hun Sen runs rings round his donors

THIS week saw an annual ritual acted out between Cambodia's government and its ravening hordes of foreign donors. The donors tut-tut at the government's breaking of last year's promises to curb corruption and human-rights abuses. The government trots out the same promises all over again. The donors laud its modest achievements in other areas. Then they announce another big dollop of aid. This year the foreign governments, multilateral agencies and charities pledged $690m, 15% more than last year, thanks to China's decision to join the annual aid-pledging process, thus adding its donations to the total.

The promised aid exceeds the Cambodian government's entire annual tax revenue. Fortunately, in light of how much public money is looted by corrupt officials, most will go directly to poverty-cutting projects without passing through government coffers. As ever, the prime minister, Hun Sen, promised that an anti-corruption law, stuck in parliament for years despite his big majority, would soon be passed. The donors know that the law might make little difference, given how erratically the country's existing laws are applied, especially to those in government circles. But it would at least look like progress.

Not all is bad in Mr Hun Sen's government. Its openness to trade, investment and tourism has boosted economic growth to almost 11%. Public finances are on a sounder footing, and education and health services are slowly improving. Deaths and disappearances of government opponents have almost ceased in recent years. But there is little progress on curbing graft and other abuses.

This was illustrated earlier this month when Global Witness, an environmentalist group, published a detailed dossier alleging involvement in illegal logging by people close to the government. The group spent months seeking responses from those it named. Rather than reply, they waited until the report was published and then reacted in their customary, hysterical manner. The prime minister's brother, Hun Neng, a provincial governor mentioned in it, said that if anyone from Global Witness returned to Cambodia he would “beat him on the head until it broke.”

There was a similarly aggressive reaction to a report this month by Yash Ghai, the United Nations' human-rights envoy to Cambodia, which said assassinations, land-grabbing and other abuses were going unpunished. As in previous years, Mr Hun Sen preferred not to respond to the allegations, but fired off a barrage of personal insults at the envoy.

It is only recently that Mr Hun Sen stopped treating the donor governments and agencies with similar contempt. At least he has stopped biting the hands that feed Cambodia. But, says Erik Illes of SIDA, Sweden's foreign-aid agency, there is “growing frustration” at the lack of progress on corruption and human rights. Mr Hun Sen reminds Western donors that if they get too demanding, he can always rely on China to provide soft loans without strings. The big oil revenues that Cambodia will start earning in the next few years will also reduce foreign donors' leverage, laments Mr Illes.

However, argues Mike Davis of Global Witness, the prime minister craves international respectability as well as cash, and China alone cannot give him this. So the donors, if they united to make tougher demands, could make it clearer that his behaviour is beyond civilised bounds. The trouble is that donor governments and multilateral organisations often assign inexperienced staff to Cambodia. That makes it easier for Mr Hun Sen to bully them into silence.

All Parties Agree: Cambodia Needs the Aid

Mony, VOA Khmer
Original report from Phnom Penh
21/06/2007

"Taking aid money was 'not begging'" - Heng Samrin National Assembly President

Ruling and opposition party officials who are usually at odds with one another agree on at least one thing: Cambodia needs the aid money it gets from donors each year.

Billions of dollars in aid have poured into Cambodia since UN-sponsored elections in 1993, and donors agreed Wednesday to give $690 million more. Rights groups said they were disappointed with donors, who continue to give aid to the government without holding it fast to policies of good governance.

While disagreements exist over how much oversight should go along with the aid, no one denies that Cambodia needs the money. Infrastructure, health, education and other institutions remain weak, wracked by war and neglect. Officials said after this week's meeting they intended to direct more money at those problems.

Critics said that without strong anti-corruption measures, aid money doesn't go where it is needed most, and instead finds the pockets of corrupt officials. Meanwhile, the problems of land-grabbing and rights abuse remain, and an anti-corruption law is stagnant.

With corruption siphoning off much needed funds for development, Cambodia risked becoming a permanent aid recipient, critics said, which threatened to turn the country into a beggar nation.

Lawmakers from both sides of the aisle Thursday said the money was necessary, but some took umbrage with the beggar analogy.

Taking aid money was "not begging," National Assembly President Heng Samrin said. "This is [getting] help from those countries."

National Assembly Finance Committee Chairman Chiem Yeap declined to forecast when Cambodia might stop relying on aid, in grants or loans from foreign governments or development banks.

"It is not different from women having babies. When they feel better, the midwives leave," he said. "We see that we should do things ourselves. But right after the war, our economic infrastructure was down, and we reconstructed our country. It is still not enough for our farmers' necessities, so we cannot pull ourselves away from foreign aid."

Groups unimpressed by Cambodian aid donors [- Chapey master Kong Nai will be evicted from his home also]

21/06/2007
Australian Broadcasting Corporation

Cambodia's international donors have pledged $US690 million in aid to the impoverished nation for the next year.

The pledge came after Prime Minister Hun Sen, told the meeting he would get 'in touch' with fight against corruption and land disputes.

But it hasn't impressed the human rights organisations that work with Cambodia's poorest populations who say donors should demand action and not rhetoric.

Bill Bainbridge reports for Radio Australia's Connect Asia programme that master musician Kong Nai lives on the land that once held the National Theatre of Performing Arts in Phnom Penh.

He is one of many artists who established a community on the site after they lost their homes during the devastation of the Pol Pot years.

But now Nai and the rest of his community face eviction. In 2005 their land and that of communities surrounding them, on prime Phnom Penh real estate, was illegally sold.

Now he says he has no idea where he will live.

Human rights organisation Licadho filmed Nai's story. Their Director Naly Pilorge says land grabbing in Cambodia has exploded in recent years.

"Its often done with very little notice, no participation from the communities, and often very violently with the use of weapons and machinary and often the people that are doing the evictions are company guards usually with the authorities, whether the village chief or riot police," Naly Pilorge said.

Aid: The making of a "beggar" Nation

Aid Without Reform Could Make Cambodia a 'Beggar' Nation, Activist Says

Sok Khemara, VOA Khmer
Original report from Washington
20/06/2007

Aid without reform and strict guidelines puts Cambodia at risk to become a beggar nation, solely reliant forever on foreign aid and incapable of one day functioning independently, Seng Theary, executive director of the Center for Social Development said Wednesday.

The consultative group of donors Wednesday pledged to give Cambodia $690 million in aid in 2007, raising questions about the number of years Cambodia will be reliant on aid, on how future generations will pay off foreign loans and whether the government was doing a good job with the money.

Governments must not forget that the aid is money from individual foreign taxpayers, so it should be 100 percent relevant to the Cambodian people, Seng Theary said in a VOA Khmer interview. This alone should make the annual aid pledges important to many people.

"There should be strong conditions," she said. Without them, reform won't take place. "That's why we need the donors to do more."

Continued aid without reform risked turning Cambodia into a "beggar," she said.

Projects undertaken by the government that don't succeed should be scrutinized by donors, and poor projects should not receive funding, she said.

Donors need to make sure the aid is being properly spent, and, if it isn't, they should be ready to cut it off, Seng Theary said.

Even as the aid comes in, the government ignored calls from rights groups for greater transparency on government expenditures and debt, she said.

Donors Pledge $690 Million in Aid Increase

VOA Khmer Stringers
Original report from Phnom Penh
20/06/2007

International donors pledged $689 million in aid Wednesday, a 15 percent increase from last year, despite pressure from rights groups that aid be tied to better governance.

Elated Cambodian officials said they had received more than they expected and would spend the money on health, education and infrastructure.

Donors called for the passage of a long-stalled anti-corruption law and said they expected reforms to move faster with the added money.

China, which in past years has not participated in the consultative group meeting, contributed $91 million this year. Japan, Cambodia's largest donor, pledged $112 million.

The aid was tied to conditions pushing the government to pass an anti-corruption law that has been stagnant for years.

Finance Minister Keat Chhon told a local newspaper the amount of aid reflected donors' trust in Cambodia's financial management improvements.

"Why is the amount so much? Because the government has made a lot of effort for strengthening financial management, and the development partners saw our efforts," he said.

The consultative group is made up of 18 donors including the US, Germany, Japan, South Korea, the Asian Development Bank, the European Commission, the International Monetary Fund, the United Nations Development Program and the World Bank.

World Bank Country Director Ian Porter called the anti-corruption law "very important" for Cambodia's good governance issues and said donors wanted "to ensure that Cambodia continues to have a good record in terms of growth and poverty reduction."

"The reforms will move ahead faster, particularly areas related actually to…good governance," German Ambassador Pius Fischer told reporters after the meeting.

Mu Sochua, Sam Rainsy Party secretary-general, said donor countries should take responsibility when giving aid, "so that it will go to the Cambodian people."

Her concerns were echoed by others in the rights community, who see continued aid without restrictions as potentially harmful.

"I hope that this time the donor countries take the problem that is a concern to the whole country to the government and ask the government to show results according to the government's promises," said Kek Galabru, founder of the rights group Licadho.

Mounted donations mirror donor country's consistent confidence in Cambodia [especially China]

2007-06-20
By Xia Lin & Long Heng

"Additionally, Hun Sen told the givers that his Cambodian People's Party (CPP) is confident to win the next general election in 2008 and the national policy will then keep consistent."

PHNOM PENH, June 20 (Xinhua) -- Donor countries here on Wednesday pledged 15 percent more donations for Cambodia in 2007 over 2006, verifying their rising trust and confidence in the impoverished kingdom and its government.

Cambodia is expected to receive over 689 million U.S. dollars in aid from its donor countries in 2007 and the amount will almost stay the same in 2008 and 2009, said Cambodian Minister of Finance and Economy Keat Chhon at a press conference held upon the conclusion of the two-day First Cambodian Development Cooperation Forum (CDCF).

"The finance will be spent on strengthening the country's overall development" and especially implementing the Millennium Development Goals (MDG) in the sectors of good governance, clean water and sanitation, he added.

Meanwhile, according to the government's statement issued on Wednesday at CDCF, or the donor countries' annual meeting, in 2007Japan alone will provide Cambodia with over 112 million U.S. dollars, remaining the largest donor country for Cambodia, while the European Union (EU) will give more than 170 million U.S. dollars.

Earlier this month during his 15th visit to Japan, Prime Minister Hun Sen signed an investment protection agreement with the Japanese government in order to promote its investment status in Cambodia.

This year's rise of donations comes along with the kingdom's achievements of consistent economic boom in the past decade.

According to the government's report, the average annual economic growth rate of Cambodia was 9.8 percent between 1994 and 2006. The macro economic stability peaked in 2005 as the economic growth rate then reached 13.4 percent and later in 2006 slightly down to 10.4 percent.

In addition, said the government's statistics, the income per capita doubled from 249 U.S. dollars in 1994 to 500 U.S. dollars in 2005, and the foreign currency reserves increased from 100 million U.S. dollars in 1994 to one billion U.S. dollars in 2006.

However, on the other side of the coin, with the donations turning out to be much higher than last year's 601 million U.S. dollars, the Cambodian government again scored a victory over the opposition force, NGOs and some foreign countries and organizations, who repeatedly criticized it as too corrupt to deserve the donor countries' trust.

On Tuesday while inaugurating CDCF, Hun Sen assured the participants in this regard with high-profile vows to iron out corruption within his government.

"We have always fight corruption with concrete measures and the government is determined to adopt anti-corruption law as soon as possible," he told the representatives, adding that corruption is "cancer of the society" and must be fought with real actions.

"Even we don't have anti-corruption law yet, we take strict actions to fight corrupt officials," he said.

Recently, he added, seven government officials were punished over illegal logging, two arrested and put into jail for seizing private properties, one accused of conspiracy in state land grabbing and destroying forestry, one another accused of destroying natural resources and ruining environment, and 11 others jailed over cutting forestry illegally in Ratanakiri province.

Additionally, Hun Sen told the givers that his Cambodian People's Party (CPP) is confident to win the next general election in 2008 and the national policy will then keep consistent.

"Now Cambodia has about 60 political parties. If CPP wins the next general election, I will continue to lead the country as premier," he said.

The next donor countries' meeting, namely the Second CDCF, is expected to be held in December 2008, two or three months after the general election is wrapped up, he added.

Hun Sen has been country leader since 1985 and transformed Cambodia from a war-torn land into a kingdom with its poverty rate decreasing from 47 percent in 1993 to 35 percent in 2004.

Hun Sen's latest concession land seizure "show" always work like a charm with aid donors

Jun 20, 2007
DPA

"Cambodia had taken pleasing steps to combat the problem, seizing five land concessions deemed illegal and suspending or disciplining more than 50 officials for corrupt practices in the past year" - Pius Fischer, German Ambassador to Cambodia

Phnom Penh - Despite heavy political pressure from human rights groups, donors significantly increased total aid pledges to Cambodia Wednesday to nearly 690 million dollars at an annual meeting in a move the government said recognized its ongoing efforts at reform.

Donors at the two-day Cambodia Development Cooperation Forum largely kept their pledges in line with previous years, granting 689.21 million dollars in grants and loans. The total included both direct government funding and indirect funding to non-government organizations, according to Finance Minister Keat Chhon.

The overall increase on the 601 million dollars pledged by donors in 2006 came despite demands from rights groups for donors to demand more for their money. They said widespread rights abuses and endemic corruption continue virtually unchecked in Cambodia.

It was bumped up by a contribution of 91 million dollars by China, which has previously refused to be involved with the meeting. Although it did not send a delegation, Chhon said it had made the pledge via official diplomatic channels. Japan remained the most generous donor, pledging 112 million dollars for 2007.

The German ambassador to Cambodia, Pius Fischer, said that although corruption remained a 'cancer of this society,' Cambodia had taken pleasing steps to combat the problem, seizing five land concessions deemed illegal and suspending or disciplining more than 50 officials for corrupt practices in the past year.

Germany, which is also the chair of the European Union (EU) this year, pledged 21 million dollars for 2007, although Fischer said total disbursment may actually be even higher. EU countries pledged a total of 170.2 million dollars for the year and nearly half a billion over three years.

No breakdown of the total into what constituted loans and what constituted grants was made available. Chhon said the total included direct funding for the government and indirect funding through non-government organisations.

Last week, the UN human rights envoy to Cambodia, Yash Ghai, delivered a stinging report in Geneva, and the government recently came under harsh criticism for banning a critical report on illegal logging by London-based Global Witness, but Fischer said donor funding was a complex process which 'should be interpreted more long term than short term,' and donors had seen overall progress as positive.

The forum meeting involved key donors to Cambodia, including the United States, Germany, Japan, South Korea, the Asian Development Bank, the European Commission, the International Monetary Fund, the United Nations Development Programme and the World Bank.

Government officials said the funds are primarily earmarked for the development of infrastructure, such as rural development and irrigation projects, as well as improving the fledgling health system, which remains in disarray after 30 years of civil war.

The World Bank estimates 70 per cent of Cambodians remained dependent on agriculture but the country also has one of the fastest rates of urbanization in the region. According to the IMF, its economy also grew 10.4 per cent last year and was expected to continue to grow at a rate of about 9 per cent in 2007.

Eight foreigners were briefly detained but later released during the meeting after a protest urging the release of two men who rights groups said have been falsely jailed for 20 years for the murder of unionist Chea Vichea.

Donors Continue to Give to Cambodia, But Corruption Concerns Remain

By Rory Byrne, Voice of America
Phnom Penh
20 June 2007

Cambodia's annual donor conference has ended with pledges of almost $700 million in aid, even though donors expressed frustration at continued corruption and poor governance in the country. Cambodia has enjoyed robust economic growth in recent years, but international aid still makes up about half its national budget. Rory Byrne reports from Phnom Penh.

Cambodia was given a mixed review by donors at this year's annual gathering of governments, foreign donors and civic groups, who met in Phnom Penh to thrash out how much aid the country will receive.

The government was given credit for strengthening financial management and improving the country's education and health care systems.

Some human rights groups called on donors to tie aid to progress in combating corruption and ending abuses.

"We would like the donors to link the aid to the improvement of respect of human rights, rule of law, principle of democracy," said Kek Galabru, the president of the Cambodian human rights group Licadho. "You know like, we would like to see the result of the problem of land grabbing. How about the democratic space for Cambodian people - can they demonstrate peacefully? Can they have access to information and have freedom of expression?"

In the end, the aid was given without strings attached, and pledges totaled about $700 million, including a $100 million loan by China. But donors said the government must do more to curb corruption, and to strengthen human rights.

At the core of the concern is the government's failure to enact an anti-corruption law that has languished at the committee stage for years.

Transparency International, which ranks countries by their level of corruption, named Cambodia one of the world's worst - 151 out of 163.

While some progress in drafting the law has been made recently, certain points remain unresolved, including whether government officials must declare their assets, and guarantees that the law will be applied evenly.

Ian Porter, the World Bank's country director for Cambodia, says a strong anti-corruption law is seen as vital before Cambodia begins to pump the oil recently discovered off its southern coast.

"That law remains very important because we continue to think that governance issues are a critical issue that needs to be addressed to ensure that Cambodia continues to have a good record in terms of growth and poverty reduction," he said. "The fight against corruption in Cambodia must remain a very high priority for the government, and in that context, the passage of an anti-corruption law would be very important."

Prime Minister Hun Sen, addressing the conference Tuesday, acknowledged concerns about corruption. He says he is committed to introducing an anti-corruption law, but he gave no indication when the National Assembly would debate the long-awaited bill.

Despite the problems, the country's economy has been booming. Growth has averaged 11.4 percent for the last three years, and the International Monetary Fund predicts a further nine percent increase this year. The increases have come mainly in tourism, construction and garment manufacturing.

Hun Sen's gov't got its wish from Donor Countries

Cambodian government officials and donors stand listening to the national anthem during the 1st Cambodia Development Coorperation Forum meeting in Phnom Penh. Cambodia is expected to seek 689 million dollars Wednesday from donors amid demands by rights groups the international community get tough on the government's apparent refusal to reform. (Photo: AFP)

Cambodia boosts aid request to 689 million dollars

Wednesday • June 20, 2007
AFP

Cambodia is expected to seek 689 million dollars Wednesday from donors amid demands by rights groups the international community get tough on the government's apparent refusal to reform.

The amount of aid requested for the coming year is almost 100 million dollars more than that pledged at last year's annual meeting, according to government documents.

Already, Cambodia's largest donor Japan has said it will likely offer the same, if not more money than last year's 110 million dollars.

While acknowledging Cambodia's economic growth as a positive sign, Japan said in a statement that "the slow progress in certain governance reform programmes seems to need particular attention."

Foreign donors are expected to announce their pledges later Wednesday after two days of aid talks that have reportedly focussed largely on the government's failure to pass anti-corruption legislation to tackle rampant graft.

Cambodia was ranked 151 out of 163 countries in Transparency International's 2006 corruption index, which compares graft levels in governments around the world.

Before the meeting, diplomats praised Cambodia's increased willingness to work with donors.

But the opening of the talks Tuesday was marred by the detention of foreign protesters which rights groups said highlighted the government's continuing hardline stance towards dissent.

The eight Westerners, who were demanding the release of two men many feel have been wrongly jailed for the 2004 killing of labour leader Chea Vichea, were freed hours later.

But the incident underscores Cambodia's failure to act on its reform promises made at previous donor meetings, rights groups said.

"The meeting has become an empty annual ritual, with the government making and breaking promises every year," said Brad Adams, Asia director of the New York-based group Human Rights Watch.

"There will be more promises made this year but without serious donor pressure they, too, will be broken," he added.

China adds icing on the "aid" cake rewarded to Hun Sen

Cambodia donors pledge $690 mln in 2007 aid

By Ek Madra

PHNOM PENH, June 20 (Reuters) - Cambodia's international donors pledged $690 million in aid for 2007 on Wednesday, a 15 percent increase on the previous year that reflected recognition of government and economic reforms, a Cambodian official said.

"We received more than we expected. This is a reward for Cambodia's good performance over the last year," senior Finance Ministry official Hang Choun Naron said after a donor conference in Phnom Penh.

A breakdown revealed that much of the increase was accounted for by $91 million from China, which has shunned the collective donor process in previous years, preferring to offer bilateral assistance instead.

Japan remained the biggest contributor, with $112 million.

Twenty percent of the aid was in the form of loans and the rest in grants. Historically, Phnom Penh has relied on foreign aid for more than 60 percent of government spending.

The assistance should provide another boost to the war-scarred southeast Asian nation's economy, which is enjoying near double-digit growth due to relative political stability and booms in the tourism, clothing and construction sectors.

"We are going to spend this money on education, health care, improving infrastructure, rural development and agriculture," Hang Choun Naron said.

The economy grew 10.4 percent last year, according to the International Monetary Fund (IMF), which expects growth of 9 percent in 2007 and 7.5-8 percent in 2008, making it one of the world's fastest-growing economies, albeit worth only $7 billion.

In a big push to banish the legacy of Pol Pot's "Year Zero" revolution and its estimated 1.7 million victims, Phnom Penh has obtained a B+ credit rating from Standard and Poor's and a B2 from Moodys this year.

Earlier this month, Prime Minister Hun Sen, a former Khmer Rouge soldier who has been in charge for more than 20 years, announced plans for a stock market in 2009, another sign of the accelerating recovery from the horrors of the "Killing Fields".

Despite this, donors also called for greater commitment to reform of a notoriously corrupt and political judiciary, and swift enactment of draft anti-graft laws that have been gathering dust on the shelves of parliament for years.

Hun Sen's critics accuse him of being an autocrat who has brought stability at the expense of human rights and openness.

Eight Westerners were arrested outside the meeting on Tuesday for campaigning for the release of two men whom rights groups say were framed for the 2004 murder of a prominent union leader.

Phnom Penh police chief Touch Naruth said the group -- three Americans, two Canadians, one New Zealander, one Briton and one Dane -- had been arrested for "protesting illegally".

They were released after signing an agreement not to do so again, police said.

Khieu Kanharith's confidence: "We think that we will get the amount of aid that we have asked for"

Gov't Optimistic on This Year's Aid Disbursement

Chun Sakada, VOA Khmer
Original report from Phnom Penh
18/06/2007

Government officials said Monday ahead of this week's donor meeting they were optimistic aid would continue to flow, despite recent criticism from human rights and advocacy groups.

The Cambodian government will be looking for $600 million from countries including the US and Japan, to support its national budget in two days of meetings that begin Tuesday.

Government spokesman Khieu Kanharith told VOA Khmer that donor countries will give the amount that the government has asked.

"We think that we will get the amount of aid that we have asked for," he said.

The government's confidence comes in the wake of serious accusations of abuse and corruption, including a forestry report by Global Witness that links illegal logging to Prime Minsiter Hun Sen, his cabinet and a powerful "kleptocratic elite." The report, whose findings the government denies, also reprimanded donors for failing to use aid as proper leverage for governmental responsibility.

Other critics say the aid given Cambodia each year does not reach its intended agencies, but instead slips into the coffers of corrupt officials.

Opposition legislator Yim Sovan said donor countries should push harder to abolish corruption and reduce poverty, while pressuring the government to solve a land-grab problem that has grown worse as Cambodia develops. Meanwhile, the government has continually failed to pass an anti-corruption law.

"Up to now, all the promises have no meaning, because up to now, the anti-corruption law has not been in place, so the international community should be aware of this issue," he said. "It should do something to help the government make an anti-corruption law."

Since 1993, the annual donors meeting has elicited promises from Cambodia's leaders that are rarely kept, said Kek Galabru, founder of the rights group Adhoc.

"So I think that this year, I still think there is no change from last year," she said.

Hun Sen Begins Japan Visit [to look for money]

Chun Sakada, VOA Khmer
Original report from Phnom Penh
13/06/2007

Prime Minister Hun Sen began an official three-day visit to Japan Wednesday, where he is seeking more aid for infrastructure and other investment.

Hun Sen's visit comes ahead of a donors meeting scheduled for next week. Japan is Cambodia's largest donor.

Ahead of the visit, Hun Sen said he would appeal for aid to build a bridge across the Mekong River at the Neak Loeung ferry crossing southeast of the capital. The prime minister would also seek funds for the restoration of National Route 2 between Kandal and Takeo provinces, he said.

"I am going to find the bridge, to find the Neak Loeung bridge, pushing for the Neak Loeung bridge," Hun Sen said, "and to look for money for the country's development and bring more Japanese investment."

Hun Sen is leading a delegation of 25 cabinet ministers and is scheduled to have an audience with Emperor Akihito.

Australia to increase aid to Cambodia in 2008

May 16, 2007

The Australian government has decided to increase aid to Cambodia by 11 percent in the coming year, but the actual amount is not specified, local media reported on Wednesday.

Australian Ambassador to Cambodia Margaret Adamson told Prime Minister Hun Sen here on Tuesday that the aid will target agriculture, health and scholarships for Cambodian students, reported Cambodian daily newspaper the Kampuchea Thmey.

Australia will continue to help Cambodia in order to strengthen bilateral and multilateral cooperation, Eng Sophallet, personal assistant to the premier, was quoted by another Cambodian daily newspaper the Koh Santepheap as saying.

Hun Sen said that the Australian aid is well-suited to Cambodia 's rural development and poverty reduction strategies and thanked the Australian government for its continuous assistance to Cambodia, reported the Koh Santepheap.

Hun Sen also requested the Australian government to assist Cambodia for its 2008 national election, reported the Kampuchea Thmey.

Hun Sen paid a six-day official visit to Australia in October 2006.

As the visit was wrapped up, Minister of Commerce Cham Prasidh told reporters that the Australian government is to offer to Cambodia over 123 million Australian dollars (around 92 million U. S. dollars) of aid in the next 5 years.

Among it, 48.5 million Australian dollars (some 36 million U.S. dollars) goes for comprehensive projects from 2006 to 2007, and 45 million Australian dollars (some 34 million U.S. dollars) for agricultural projects and 30 million Australian dollars (some 22 million U.S. dollars) for justice and penal affairs in the next 5 years.

From 1996 to 2006, Australia has offered a total of 424 billion Australian dollars (around 318 billion U.S. dollars) of aid to Cambodia.

Australia is the kingdom's third largest donor, trailing Japan and the United States.

Source: Xinhua

WB, Australia to offer 36 mln dollars for Cambodia to maintain roads

April 23, 2007

The World Bank (WB) and the Australian government will respectively provide 30 million U.S. dollars and six million U.S. dollars in aid for regular road maintenance in Cambodia, local media said on Sunday.

"The Australian government will send experts to help us in road maintenance" at the cost of six million U.S. dollars, Cambodian newspaper the Rasmey Kampuchea Daily quoted Sun Chan Thol, Minister of Public Works and Transportation, as saying.

The World Bank will also provide Cambodia with six million U.S. dollars each year for five years for regular road maintenance, he added.

In 2007, Cambodia will maintain 2,337 km of roads, including national and rural roads, at the cost of about 23.8 million U.S. dollars, said official statistics.

Source: Xinhua

Cambodia looks for aid to protect [Tonle Sap] lake

March 16, 2007

MANILA, Philippines, March 16 (UPI) -- Cambodia will get international aid to preserve Southeast Asia's largest freshwater lake.

While financial details have yet to be unveiled, the Asian Development Bank said Friday it will provide support to clean up the Tonle Sap Great Lake, which will not only help the environment, but also help the area's poor.

Over one million people owe their livelihood to the lake and its ecosystem, the ADB said. As such, the bank argued that it will be critical to hold discussions on how to go about protecting the lake on the one hand, and allow people to benefit from those policies on the other.

"There is a risk that some of the poor and marginalized could be increasingly left behind," said Urooj Malik, director of the agriculture, environment and natural resources division at the bank's Southeast Asia department. "It is vital to involve them more in the process of formulating policies designed to improve their conditions."