The World Bank has officially approved the disbursement of $1 billion to develop priority sectors in Cambodia, the Ministry of Economy and Finance announced Monday.
The loans will be provided under the ‘Country Partnership Framework for 2019-2023’, approved by the World Bank in May, according to a statement issued after a meeting between Economy and Finance Minister Aun Pornmoniroth and Victoria Kwakwa, vice president of the World Bank for East Asia and the Pacific.
“This programme is a medium-term cooperation framework between the Royal Government of Cambodia and the World Bank that will provide loans to support development, especially the government’s Rectangular Strategy-Phase 4,” the statement said.
According to the statement, the minister considers the World Bank an important development partner that has significantly contributed to the Kingdom’s economic growth.
“I would like to thank the World Bank for supporting the development of Cambodia, providing financial support and know-how to the Kingdom,” Mr Pornmoniroth said.
According to a World Bank report published in May, the partnership framework will support Cambodia’s progression to the next stage of its development and reflects the evolution of the World Bank’s engagement in the country.
“The programme reflects the government priorities and will address the country’s challenges of limited economic diversification, rapidly increasing urbanisation, human capital deficiencies, and infrastructure gaps,” the report says.
The framework focuses on state efficiency and boosting private sector development. It will address several challenges related to supporting Cambodia’s financial and business sectors, as well as improving the efficiency and effectiveness of the public sector.
The framework will support the development of Cambodia’s human capital and focuses on improving agricultural productivity and strengthening the sustainable use of natural resources.
Early this week, Ms Kwakwa met with Prime Minister Hun Sen and praised the Kingdom’s rapid development.
“On behalf of the World Bank, I congratulate Cambodia on its impressive achievements. Cambodia is moving in the right direction,” Ms Kwakwa said, noting Cambodia’s rapid economic growth of about seven percent a year, as well as the decreasing poverty and infant mortality rates.