Asian Development Bank – News from Country Offices | 27 October 2014
PHNOM PENH, CAMBODIA – Cambodia’s Minister of Economy and Finance H.E. Dr. Aun Pornmoniroth and the Asian Development Bank (ADB) today signed grant and loan agreements worth $99 million for three development projects.
The agreements cover the Rural Roads Improvement Project II, the Technical and Vocational Education and Training Sector Development Program, and the Community-Based Disaster Risk Reduction Project.
“These initiatives will improve the quality of life for poor and vulnerable people through a climate-resilient and cost-effective road network, the development of a skilled workforce responsive to labor market needs, and disaster management planning support to reduce disaster impacts in the country,” said Eric Sidgwick, ADB Country Director for Cambodia, who signed the agreements on behalf of ADB.
The Rural Roads Improvement Project II will pave 729 kilometers of rural roads in nine provinces with high poverty incidence in Cambodia, such as Banteay Meanchey, Battambang, Kampong Cham, Kampong Chhnang, Kampong Speu, Kampong Thom, Pursat, Siem Reap, and Takeo. The project will also extend rural road asset management and axle-loading control programs and is expected to benefit about 800,000 rural people.
ADB and the Government today signed $66 million in financing for the $118 million road project, comprising a loan of $54 million from ADB, a parallel loan of $41 million from the Government of the Republic of Korea, a grant of $6.67 million from the Government of Australia, and grant cofinancing of $5.4 million from the Nordic Development Fund. The Government of Cambodia will finance the remaining $11.16 million cost of the project.
In addition, ADB is providing a $30 million loan for the Technical and Vocational Education and Training Sector Development Program to increase the employability of technical and vocational education and training (TVET)-certified workers through an accessible and demand-driven TVET system responsive to continuing and emerging labor market demands. The program will continue to expand access to TVET programs, particularly for women and the poor, while making it easier for people to shift between different levels of qualifications and types of training.
It is expected that more than 55,000 Cambodians will participate in different training programs; 850 staff and instructors of public TVET institutes will be trained to deliver competency-based training and assessment; 3 women’s dormitories with career mentorship facilities, and 9 workshops will be built and 78 classrooms will be upgraded with specialized equipment; and 4 centers of excellence and sector skills councils will be established.
Finally, the $2.5 million Community-Based Disaster Risk Reduction Project, financed by the Japan Fund for Poverty Reduction, will support 54 selected communes in 18 districts in the 6 target provinces of Battambang, Banteay Meanchey, Siem Reap, Kampong Thom, Kampong Cham and Prey Veng, to put in place disaster risk management and climate change adaptation plans.
The project will provide hazard and vulnerability assessments, early warning systems, and emergency response and recovery plans, reflecting the needs and vulnerabilities of communities. The project aims to reduce economic losses from floods by 15% over a 5-year period from 2015.