The European Union through Europe Investment Bank (EIB) will provide €15 million grant (approximately US$17 million) for rural infrastructure development in Cambodia.
The grant is part of the project to accelerate the implementation of the Sustainable Assets for Agriculture Markets, Business and Trade (SAAMBAT), according to recent press release.
SAAMBAT is a €105 million (approximately US$120 million) partnership investment made by the International Fund for Agricultural Development (IFAD), the EIB and the Royal Government of Cambodia.
It is designed to improve living standards and the ease of doing business for some 200,000 rural Cambodian families by creating a reliable and safer road network year-round, better rural infrastructure and a reliable food supply.
The SAAMBAT project will finance improvements in road infrastructure, road safety and the country’s resilience to natural hazards, and support the development of key rural infrastructure such as local markets. These are vital for Cambodia, where two-thirds of all rural households face seasonal food shortages every year due to underdeveloped infrastructure.
The project will also create up to 4,500 jobs and 500 new small and medium-sized enterprises, and train 25,000 Cambodians to use digital technologies to improve their businesses and increase trade.
With Team Europe and IFAD investments and grants, and funds from the Royal Government, Cambodia will build some 650 kilometres of paved road and 150 kilometres of gravel road, and improve 50 rural market areas and about 25 other value chain logistics facilities.
H.E. Hem Vanndy, Secretary of State, Ministry of Economy and Finance of the Kingdom of Cambodia said the grant resources are an important contribution to the rapid and sustainable development of rural communities in Cambodia and to the green recovery from the global COVID-19 pandemic.
Head of Cooperation at the EU Delegation to Cambodia Bryan Fornari said that with 105 million Euro of investment in Cambodia, SAAMBAT will help farmers and rural families to have better access to markets, supporting the growth of SMEs in the agriculture sector.
“This will contribute to the growth of rural economy and create new job opportunities in Cambodia’s countryside. Through our work with European Investment Bank, this project brings the spirit of Team Europe to our partnership with the Royal Government of Cambodia, together with IFAD,” he said.
The project will be financed by a US$53.3 million loan and a US$1.2 million grant from IFAD, a €65.2 million loan from the EIB and a US$12.41 million contribution from the Royal Government of Cambodia.