Delegation of the European Union to Cambodia

European Union, Germany and France jointly invest US$ 115 million to develop rural infrastructure in Cambodia

30/12/2020 - 06:07
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Phnom Penh, 21 December 2020 – Representatives from the Royal Government of Cambodia (RGC), the German development bank KfW, Agence Française de Développement (AFD) and the European Union (EU) have signed agreements for the financing of the RID4CAM (Rural Infrastructure Development for Cambodia) project, which aims to develop rural infrastructure in the central plain of Cambodia.

In Cambodia, where 70% of the population lives in rural areas, the development of road infrastructure is a priority. Roads make a significant contribution to economic growth through job creation and the emergence of the businesses that they generate. They also contribute to social inclusion through improved access to basic social services and lower costs of consumer goods.

RID4CAM aims to finance both the improvement of the road network in the country's central plain provinces, which has the highest population density and is most vulnerable to the impacts of climate change, and the construction of complementary infrastructure in the drinking water and sanitation, agriculture, health and education sectors. This project will also strengthen the capacities of all the actors involved in the sector.

RID4CAM is cofinanced by KfW, acting on behalf of the German Government, AFD and the European Union. KfW provides a combination of loans and grants totaling to € 37.1 million, AFD a € 50 million loan and the EU a € 8.73 million grant.

“I believe that this new Team Europe project, which combines the forces from Germany, France and the European Union, will impact positively the life of tens of thousands of rural Cambodian families. A better connectivity to access markets and services is key to reduce poverty and economic disparities as well as to create new job opportunities in different provinces. This is particularly important to accompany the recovery from Covid-19 crisis. We will also attach a great importance on the proper systems to be put in place for the regular maintenance of the rural roads beyond their rehabilitation. » said HE Mrs Carmen Moreno, the EU Ambassador to Cambodia.

French Ambassador Mrs. Eva Nguyen Binh: “I am particularly pleased to see how this RID4CAM project confirms the ability and agility of the European Union Delegation to Cambodia and France and Germany as Member-States to work together for the benefit of rural populations. As we just celebrated the fifth anniversary of the Paris Agreement, we have renewed our commitment to fight climate change. Thus, I am particularly proud that this new AFD financing contributes fully to this objective, though the development of resilient and adaptive infrastructures in rural areas. I am also happy to see that it promotes a new approach for local development at territorial scale.”

German Ambassador Christian Berger: “Recent floods have shown how important it is to make roads resilient for extreme weather events. Rural roads are vital economic lifelines for the 70 percent of Cambodian population. I am proud that Germany joins hands with France and the EU to contribute to a climate-resilient rural infrastructure which will assure access to markets, schools and health centers also during extreme weather events.”

“The RID4CAM program builds on our long-standing and successful cooperation with Cambodia in the area of rural development, especially with the Ministry of Rural Development in the rural roads sector. We are very proud to now join forces with AFD and the European Union to take our cooperation with Cambodia in this sector to the next level. RID4CAM will provide access to economic opportunities and social services and thus improve the living conditions of many in the rural areas of Cambodia,” said Harald Hüttenrauch of KfW in Cambodia.

"This signature operationalizes a joint declaration that was made a few days back, whereby development banks, including AFD and KfW, committed to do more to achieve sustainable development goals.  We are very proud to finance this rural development project, which is complementary to the work carried out by AFD since the 2000s to rehabilitate irrigation schemes," said Ophélie Bourhis, Director of AFD in Cambodia.

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