Kuwait rents rice farms in Cambodia

Sheikh Nasser with Cambodian premier Hun Sen

Tue, 5 Aug 2008
Trade Arabia

Kuwait City: Kuwait has leased rice fields in Cambodia and plans to import food from the Asian country, a government official said.

Soaring food prices are a key driver of inflation in the desert state, hitting 11 percent in April and May. Kuwait imports most of its food and has said it wants to invest in chicken and other farms as part of a national food plan.

Daily Awan quoted Foreign Minister Undersecetary Khaled Al-Jarallah, who is with Prime Minister Sheikh Nasser Al-Mohammad Al-Sabah on an Asian tour, as saying the rice fields would meet the country's food demand.

"Kuwait has rented many rice fields which will secure the country's needs, and will export the surplus to the international markets," the paper quoted Al-Jarallah as saying.

Kuwait has also discussed investments in the oil, industrial and tourism sectors, he told the paper.

Kuwait is interested in investing in the agricultural sector in Cambodia and boosting trade in food products, state news agency Kuna said late on Tuesday after a meeting between Finance Minister Mustapha Al-Shamali and Cambodian officials.

In June, Commerce and Industry Minister Ahmad Baqer told parliament the world's seventh-largest oil exporter could work with fellow Gulf Arab states to invest in food production and farming to secure food supplies.

The Saudi government is negotiating on behalf of Saudi investors to set up projects in Sudan, Egypt, Ukraine, Pakistan and Turkey for wheat, barley, soybeans, rice and animal fodder. - Reuters

Cambodia positive about Kuwait agriculture proposals

Aug 5, 2008
DPA

Phnom Penh - A bilateral agricultural venture between Cambodia and Kuwait proposed during an official visit by Kuwait's prime minister left Cambodia very positive about future cooperation, Agriculture Minister Chan Sarun said Tuesday.

Prime Minister Sheikh Nasser al-Mohammed al-Ahmed al-Jaber al-Sabah left Cambodia Tuesday after a three-day official visit which covered a range of subjects, including technical assistance in oil exploration, proposed direct flights and even football friendlies.

But the most interesting topic for Cambodia was a proposal to exchange agricultural technology for a large area of land to grow food - probably rice - for export to the Gulf state, Chan Sarun said.

'Foreign Minister Hor Namhong has asked me to join in discussions Wednesday to review the results of meetings with Kuwait regarding agriculture and examine the options,' Chan Sarun said by telephone.

'It is very interesting but I will know more after the meeting.'

Kuwait is oil-rich but largely covered in desert, making it difficult to grow enough food for its 2 million-plus residents.

Another Gulf state, Qatar, also made overtures along the same lines when its Prime Minister Sheikh Hamad bin Jassem bin Jabor al-Thani visited in March, and there are rumours that others in that region may follow suit.

Cambodia recently announced that drastic overhauls of its rice production techniques and improvements in infrastructure such as better irrigation and mills could boost it to become one of the biggest rice exporters in the region.

Kuwait lauds Cambodia’s agricultural potential

Tuesday, 05 August 2008
Ly Menghour, DPA & Xinhua
The Mekong Times

Kuwait’s premier has advised Prime Minister Hun Sen to turn Cambodia into an agricultural powerhouse to speed the Kingdom’s development.

“The Kuwaiti premier said Cambodia has great potential for agriculture due to good weather conditions and industrious people,” Minister of Information Khieu Kanharith told reporters after a bilateral meeting between the Cambodian premier and Prince Sheikh Nasser Al-Mohammad Al-Jaber Al-Sabah yesterday,

The Kuwaiti premier said Cambodia must increase rice production and exports in line with Thailand, which exports around eight million tons annually, and Vietnam, with around four to five million tons. Cambodia has advantages over the both neighboring countries – capital resources including water, labor and farmland – he apparently said.

Oil-rich Kuwait is mostly parched desert which is extremely costly to farm. In contrast, Cambodia only uses around a third of its agricultural land and farming methods are primitive, giving low yields.

“Kuwait has money and can help Cambodia become a major agricultural power,” Khieu Kanharith said. “Kuwait thinks Cambodia needs a little capital and has great agricultural potential. With sufficient investment, proper irrigation systems with good rice seed and scientific growing methods, we can increase our current rice output four to five times. Production costs in Cambodia are not high, and export prices are cheap.”

Kuwait has not yet disclosed the extent of its agricultural investment, but Khieu Kanharith said Kuwait can either invest directly or as a partner with Cambodian investors. “Research is first being done to find the correct site for production and export to Kuwait as was done with Qatar in the past. We do not allow foreign nationals to buy or rent land. But we can do as is being done with a number of farmers growing corn and tobacco – we supply the seed and set the purchase price contractually. If the price is high in future, we will buy the crop from the farmer at the reigning price. If the price drops, we will buy the crop at the minimum price set in the contract. We will also allow farmers to borrow capital without paying interest.”

In the 1960s, Cambodia played a key role as a rice exporter to the world though the Kingdom’s turbulent recent past saw harvests dwindle. Currently, rice production is enjoying significant growth – Cambodia produced 6.7 million tons in the 2007-08 harvest, a surplus of more than 2.5 million tons.

The Cambodian Center for Study and Development in Agriculture(CEDAC)’s principle of intensive cultivation claims that a higher rice yield can be realized by using traditional rain irrigation and local rice seed.

“Cambodia is an important rice exporter because it has favorable natural conditions, particularly a lot of farmland which has not yet been used,” CEDAC director Yang Saing Koma said. “Agricultural land which is now being used has not reached its fullest production potential as with other countries. We can increase rice output.”

Even with its great agricultural potential Yang Saing Koma foresees Cambodia facing major obstacles, such as farmers’ limited technical knowledge, poor choice of rice seeds and insufficient irrigation.

During the bilateral discussion yesterday morning, besides encouraging rice investment in Cambodia, Kuwait signed a number of important agreements with Cambodia, including economic and technical cooperation, trade deals, investment protection, as well as civil aviation agreements. Cambodia has also authorized Kuwait to build an embassy.

Kuwait, as an major oil producer, was asked to help train Cambodian officials in oil and gas exploration skills and to grant concession loans to build infrastructure and irrigation systems.

Military matters were also discussed, with Cambodia and Kuwait agreeing not to support any military and economic intervention over Iran, said Khieu Kanharith.

“Neither country will support any military actions against Iran,” he said. “The two sides do not want to see any military actions or economic embargo against Iran, because it can provide no benefit for the people.”

“Both Cambodia and Kuwait have endured miserable situations in the past and do not want it to be repeated in other countries,” he added.

Football friendlies between the two nations’ youth teams to help Cambodia boost its woeful world standing were also discussed. “We would like to see the Kuwaiti youth team visit and ours visit them for sport,” Khieu Kanharith said.

The Kuwaiti prime minister is scheduled to leave for Laos upon ending his three-day visit today.

Cambodia, Kuwait sign trade, aviation, investment deals

Tuesday, August 05, 2008
ABC Radio Australia

The prime ministers of Cambodia and Kuwait have signed five new agreements, covering trade, aviation and investment.

Prime Minister Hun Sen and visiting Kuwaiti premier Sheikh Nasser Mohammed al-Ahmed al-Sabah met in Phnom Penh on Monday.

Prime Minister Hun Sen says there'll be further talk on boosting trade and investment, and says Kuwait has promised to help Cambodia develop its agricultural sector.

Cambodian government spokesman Khieu Kanharith says the two premiers also discussed oil cooperation, with Cambodia asking Kuwait to help train local experts on the petroleum industry.

Cambodia, Kuwait agree not to support intervention in Iranian issues

PHNOM PENH, Aug. 4 (Xinhua) -- The Cambodian and Kuwaiti governments here Monday agreed not to support any military and economic intervention in the Iranian issues, said Cambodian Information Minister of government spokesman Khieu Kahnarith.

"Both countries will not support any military actions against Iran," the minister told reporters after the premiers from the two sides held an hour-long talk in Phnom Penh.

The two sides do not want to see any military actions or economic embargo against Iran, because it can provide no benefit for the people, he said.

"Both Cambodia and Kuwait have endured miserable situation in the past and do not want it to be repeated in other countries," he said.

Meanwhile, Kuwait expects the western world and Iran to meet and seek peaceful deal, he added.

Kuwaiti Prime Minister Sheikh Nasser Al-Mohammed Al-Ahmad Al-Jaber Al-Sabah arrived here Sunday for a three-day official visit at the invitation of his Cambodian counterpart Hun Sen. Both sides inked five agreements here Monday.

The United States has demanded that Iran meet weekend deadline to respond to an international package of incentives aimed at persuading Tehran to freeze uranium enrichment amid warnings of new sanctions.

Iran's nuclear negotiator Saeed Jalili is scheduled to hold talks with the Europe Union's foreign policy chief Javier Solana Monday on the standoff over Iran's atomic drive.

Kuwait to Train Cambodians in Oil Exploration

By Heng Reaksmey, VOA Khmer
Original report from Phnom Penh
04 August 2008

Kuwait will help Cambodia with oil exploration, following a meeting Monday between Prime Minister Hun Sen and Kuwaiti Prime Minister Sheik Nasser Al-Sabah.

"Kuwait agreed to send an expert to train Cambodians over oil exploration," government spokesman Khieu Kanharith said after the meeting.

Cambodia is exploring several blocks for offshore oil, attracting the interest of US, French, Japanese and Chinese companies.

Kuwait and Cambodia also agreed to establish embassies and direct flights, while Kuwait will pursue increased agricultural investment in Cambodia, Khieu Kanharith said.

Kuwait eyes Cambodian farmland for investment

Monday, August 4, 2008
The Associated Press

PHNOM PENH, Cambodia: Kuwait is eyeing Cambodian farmland for investment in agriculture to produce food supply for the oil-rich Gulf state, a minister said Monday.

Kuwait's Prime Minister Sheik Nasser Al-Mohammed Al-Ahmed Al-Jaber Al-Sabah discussed the idea during his meeting with his counterpart Prime Minister Hun Sen, said Khieu Kanharith, the Cambodian Information Minister.

"Kuwait has a lot of money, but Cambodia has a lot of fertile land," he told reporters Monday, adding that investment in agriculture was the main subject of discussion during the visit by the Kuwaiti leader.

The minister said officials from the two countries will hold more talks to discuss investment opportunities but did not elaborate on how much farmland Kuwait would be investing in.

Kuwait, an oil-rich country with a population of a million people, is the second Gulf state after Qatar to express interest in Cambodian farmland.

During his visit in March, Qatar's Prime Minister Sheikh Hamad bin Jassem bin Jabor Al-Thani also discussed a similar investment plan with Cambodian officials.

"Kuwait is rich in oil but it is covered mostly with desert ... the cost of (agricultural projects) must be high," Khieu Kanharith said.

"We have a rice farmland of 2 million hectares (5 million acres) nationwide," he added. "It still has a potential to increase yield."

On Monday, Cambodian and Kuwaiti officials also signed agreements to foster economic cooperation, protect investment, and establish direct flights between the two countries.

The Cambodian government also asked Kuwait for assistance in training its workers in the field of offshore oil, Khieu Kanharith said.

Cambodia, Kuwait ink trade pacts

Prime Minister Hun Sen (left) and visiting Kuwaiti premier Sheikh Nasser Mohammed al-Ahmed al-Sabah (centre) held talks in Phnom Penh where officials from both counties signed the deals. -- PHOTO: AP

Aug 4, 2008
AFP

PHNOM PENH - IMPOVERISHED Cambodia and oil-rich Kuwait on Monday inked five agreements, including trade, aviation and investment deals, during a meeting by prime ministers of the two countries, a spokesman said.

Prime Minister Hun Sen and visiting Kuwaiti premier Sheikh Nasser Mohammed al-Ahmed al-Sabah held talks in Phnom Penh where officials from both counties signed the deals, Cambodian government spokesman Khieu Kanharith said.

The officials signed agreements on economic cooperation, trade, investment, foreign affairs cooperation and civil aviation, the spokesman said.

'Prime Minister Hun Sen welcomes any investment by Kuwait's companies in Cambodia because it has a big potential in developing economic growth,' Mr Khieu Kanharith said.

He said the two countries would discuss more ways to boost trade and investment, and that Kuwait had promised to help Cambodia develop its agricultural sector.

The two premiers also discussed cooperation in oil, with Cambodia asking Kuwait to help train local experts on the petroleum industry, which is starting to take root here after the discovery of offshore deposits.

Cambodia expects to begin producing oil from its offshore fields in 2011, following the discovery of oil in 2005 by US energy giant Chevron.

But it remains unclear how much oil can be recovered, or whether any potential revenue would be used to benefit Cambodia, ranked among the world's most corrupt countries.

Cambodia has climbed back from decades of civil unrest to emerge as one of the region's most vibrant economies, marked by an unprecedented building boom that is radically changing the face of the once-sleepy capital.

The Kuwaiti premier arrived in Cambodia on Sunday for a three-day visit.

Kuwaiti PM in Cambodia for trade, oil talks

PHNOM PENH, Aug 3, 2008 (AFP) - Kuwait's Prime Minister Sheikh Nasser Mohammed al-Ahmed al-Sabah arrived Sunday for trade talks in Phnom Penh, where he was expected to discuss Cambodia's fledgling oil and gas industry.

The Kuwaiti premier and Cambodian Prime Minister Hun Sen will on Monday sign agreements on trade and investment, Cambodian Foreign Minister Hor Namhong said, while energy cooperation will also top the agenda.

"During the talk, we will raise oil exploration cooperation ... cooperation in the oil and gas sector," Hor Namhong told reporters at the airport, where about 600 onlookers waved Kuwaiti flags in light rain.

Hor Namhong added that he hoped the visit would bring "fruitful" cooperation between Cambodia and oil-rich Kuwait.

Cambodia expects to begin oil production of its offshore fields in 2011, following the discovery of oil in 2005 by US energy giant Chevron.

Cambodia was quickly feted as the region's next potential petro-state, sitting on an estimated hundreds of millions of barrels of crude, and three times as much natural gas in six blocks located off its coast.

But it remains unclear how much of the black gold can be recovered, or whether any potential revenue would be used to benefit Cambodia, ranked among the world's most corrupt countries.

Hun Sen Asks Kuwaiti PM to Visit Cambodia During King Sihamoni's Absence

Kuwait Premier To Visit Cambodia Soon

Phnom Penh, July 30, 2008
AKP

Kuwait Premier Prince Shaykh Nasser Al-Mohammed Al-Ahmad Al- Jaber Al-Sabah will pay an official visit to Cambodia on August 3-5 at the invitation of Prime Minister Hun Sen, according to a news release of the Ministry of Foreign Affairs and International Cooperation.

During his stay in Cambodia, the Kuwait premier will pay a courtesy call on acting Head of State and Senate President Samdech Akka Moha Thamma Pothisal Chea Sim and hold talks with Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen.