WB helps Cambodia fight poverty by improving road access

PHNOM PENH, June 13 (Xinhua) -- The World Bank have signed agreements with Cambodian Ministry of Economy and Finance to help the country materialize two projects, namely Road Asset Management and Land Allocation for Social and Economic Development, said a WB release Friday.

Cambodia will be provided with 41.5 million U.S. dollars in credit and grants to carry out the projects, which aim at fighting poverty by improving road access and enabling poor and landless people to gain livelihood, it said.

"We recognize our responsibility to utilize these credits and grant in an efficient, accountable and transparent manner and to ensure that the benefits will flow to the people of Cambodia," said Keat Chhon, Minister of Economy and Finance.

WB Country Director Ian Porter said that "our Country Assistance Strategy (CAS) places a lot of emphasis on WB supporting the development of infrastructure and sustainable natural resource management to benefit rural communities."

Under the first project, the bank is well positioned to continue its support together with other development partners for a more comprehensive approach to road asset management capacity, with a strong focus on ensuring adequate maintenance of road infrastructure.

Under the second project, WB will also be working with the government and other partners to ensure local communities, particularly poor, landless and land-poor people, benefit from improved land management, including land access and tenure security.

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The decision to extend the current CAS three more years resulted from extensive consultations with the Government and other stakeholders, including the donor community, the private sector, and the civil society. These consultations confirmed the continued relevance of the CAS strategy of improving governance through a wide range of development initiatives, said Ian Porter, Country Director for Cambodia. 'The Bank's assistance strategy recognizes the positive changes in Cambodia over the past three years, and the solid progress the Government has made in implementing the ambitious reform agenda,' Porter said. 'This progress has enabled the World Bank and other donors to continue working with the Government to deepen their reform efforts.' First approved in 2005, the Cambodia CAS provides support for tackling some of the critical governance issues threatening the country's ability to reduce poverty and achieve Millennium Development Goals. It aims to improve governance through private sector development for growth; public financial management for better service delivery; land administration, management and allocation for agricultural investments and growth; and decentralization and social accountability for better governance and empowerment of communities.

The Cambodia CAS was the first Bank Group CAS produced jointly with the Asian Development Bank, the UK Department of International Development, or DFID, and the UN system, which have all endorsed the extension.

Together with the CAS extension, the World Bank's Board of Executive Directors also approved two lending projects for Cambodia, aimed at helping the government fight poverty by improving access to roads, as well as providing poor people with land for agricultural development.

Under the Road Asset Management Project (RAMP), the Bank will provide $30 million worth of financial and technical support to help the government perform periodic maintenance on selected sections of the country's road network, as well as establish related systems. Studies have shown that road access helps reduce poverty as it allows poor people easier access to the markets. An improved road system also enables the government to bring social services to remote, rural areas.

This five-year project also receives financial support from the Asian Development Bank, and the Australian Agency for International Development. The Royal Government of Cambodia also contributed toward the project cost, which stands at $56.1 million.

The second project, the Land Allocation for Economic and Social Development Project (LASED) will receive a total of $11.5 million in funding from the World Bank, which complements technical cooperation support from the Government of Germany. LASED will support the Government's social land concession program.

Under the project, local communities will identify appropriate state land, and select poor, landless families to receive land as well as livelihoods assistance within their own communities. The five-year project will be implemented by the local communities, with assistance from the Government's land and decentralization support agencies.

CONTACT: Elisabeth Mealey, World Bank Group Tel: +1 202 458 4475
e-mail: emealey@worldbank.org