Chapter XIII:FOREIGN SOFT LOAN AND GRANT
As for the foreign loan, US$120 million loan program for Cambodia from International Monetary Fund (IMF) has been cancelled since 1996 because of the government¡¦s instability to fight the illegal logging. Recently IMF delegation has visited Phnom Penh city again to meet the concerned ministries such as: Ministry of Finance, Agriculture and Commerce and discuss how they will use the US$81.6 million (the remaining loan) for three-year loan to strengthen the government management budget and economic development.
The IMF decided to return to Cambodia to cite the credible actions taken over the past year to strengthen the national management and budget. Cambodian government officials and the donor countries think the IMF¡¦ s return is the sign that Cambodia has gotten back on its feet since the fighting in 1997. According to the newspaper, 354 million Dollars in new projects have been approved by CDC and ADB (Asian Development Bank) has approved 10 loans for Cambodia worth more than US$247 million for the ASEAN highway and power plant projects.
The Asian Development Bank (ADB) office in Phnom Penh has announced that ADB will lend 20 million (USD) low-interest soft loan to Cambodian government for the basic water and sanitation projects to improve the living of half a million people in the poor communities. These projects, which are in the provincial towns of Battambang, Kompong Thom, Kompong Cham, Svay Rieng, Kampot and Sihanoukville, will be completed by June 2005. The low-interest loan will be repayable over 32 years with an eight-year grace period.
Asian Development Bank (ADB) has approved US$16 million loan with low interest to Cambodian government for the irrigation and infrastructure projects in Kompong Thom province. More than 9,000 hectares of rice field will be equipped with new irrigation system and about 150 Km of rural roads will be renovated in communities along Stung Chinit and Stung Tung Krasang rivers in the central port of province.
The Asian Development Bank has pledged US$55 millions in low interest loans and the world bank plans to provide another US$45 millions for the emergency reconstruction of water damaged infrastructure, economic recovery and poverty alleviation.
Asian Development Bank (ADB) has loaned US$24,350,346 to the Cambodian government to improve the rural infrastructure (from 1996-2002) in Kompong Cham, Svay Rieng, Prey Veng, Kompot, Takeo and Kandal.
World Bank has loaned US$6,300,00 to the Cambodian government to develop the villages in Northeast Part of Cambodia (NVDP) (from 1999-2000) such as Kompong Cham, Kompong Thom, Kratie and Stung Treng provinces.
The Agence Francaise De Development, a French government agency, has lent a US$3.65 millions loan package to strengthen Cambodia¡¦s micro-financing activities.
Grants:
GTZ has granted to the Cambodian government to improve the Provincial Development US$9,710,000.00 in Kompong Thom, Kompong Cham and Svay Rieng.
Japan and ASEAN countries (Indonesia, Malaysia, Philippines and Thailand) have granted US$9,956,000.00 to Cambodian government to jointly cooperate on the rural development (RD) and Residential Program (RP) from 1993-2000.
UNICEF has granted US$20,150,00 to Cambodian government from 1996-2001 to support the Community Activity for the Social Development.
European Union has granted US$83,102,000 in the period of 5 years (from 1999-2003) to cooperate with PRASAC in Kompong Cham, Prey Veng, Kompong Chhnang, Svay Rieng, Takeo and Kompong Speu.
Except of the above-mentioned, the Cambodian government still receives other grants from China, Japan and NGOs ¡K etc.
The money will be used to support the National Bank of Cambodia in supervising micro-financing mechanism and strengthen activities of the Rural Development Bank.
AFD has granted over than US$48 million in 30 projects which are focused on rural development and Siemreap¡¦ s regional development. ¡@ |