The government is looking to address the current need for infrastructure development in Cambodia through the application of a loan next year from the newly-established and China-backed Asian Infrastructure Investment Bank (AIIB). The move follows a meeting on Tuesday in Phnom Penh between AIIB vice president and chief investment officer DJ Pandian and Vongsey Vissoth, secretary of state at the Ministry of Finance.
The AIIB, which was proposed by China in 2013 and launched in October 2014, is focused on supporting infrastructure development in the Asia-Pacific region. Cambodia was one of 50 founding members that signed the Articles of Agreement on June 29, 2015, in Beijing.
“Right now, Cambodia has yet to set the policy to apply for a loan from the AIIB. But, Cambodia will double check and evaluate its borrowing potential,” said Vissoth. “In 2018, when the country is preparing the public debt strategy for 2019-2023, the country will be able to take a loan from the AIIB to fulfill the huge need for infrastructure development and other sectors to boost the economy.”
An estimated $13 billion of spending on infrastructure is needed by 2020 if the Kingdom is to continue attracting foreign investment, according to a joint survey in 2011 conducted by the Japan International Cooperation Agency, World Bank, International Monetary Fund and Asian Development Bank.
For more on this story, click here.
