China’s US$302 Million Concessional Loan to Cambodia Officially Signed

AKP Phnom Penh , February 6, 2012 –

China provided another concessional loan of US$302 million to rehabilitate Cambodia ’s physical infrastructure.

An official agreement to give the loan to Cambodia was held here last Thursday between H.E. Keat Chhon, Deputy Prime Minister and Minister of Economy and Finance, and Mr. Li Ruogu, Chairman and President of Export-Import Bank of China .

The US$302 million concessional loan, according to Deputy Prime Minister Keat Chhon, makes up 85 percent of the total amount needed to rehabilitate national roads 214 and 76, a bridge across Mekong River , and Vai Ko irrigation system in Svay Rieng province.

The rest of the amount needed especially for related demining works, compensation for impact and taxes (around 15 percent) will be covered by the Royal Government of Cambodia.

The provision of the concessional loan was resulted by the Dec. 13, 2010 meeting between Cambodian Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen and his Chinese counterpart in China .

Including the US$302 million concessional loan, the total loans promised by China to Cambodia is US$1,816 million. Primarily the said loans are to be used for the four development priorities of Cambodia initiated by Samdech Techo Hun Sen, namely road, bridge, irrigation system and electricity rehabilitation and construction.

The concessional loan, added H.E. Keat Chhon, will help boost Cambodia ’s economic growth, thus further end the country’s poverty.

By MOM Chan Dara Soleil