ADB Pledges to Provide $48 Million to Improve Cambodia’s Railway

By Soy Sophea

A Visiting Asian Development Bank (ADB) High Officer has pledged supplementary funding for Cambodia’s railway restoration projects.

Lawrence C. Greenwood, Vice President of the ADB, told the Deputy Prime Minister Keat Chhon, Minister of Economy and Finance, June 16, that his bank’s board members will review and approve the supplementary funding.

Chhun Samrith,

Director of the ADB office at the Ministry of Economy and Finance, told reporters that the ADB board member meeting to examine the funding will be held in October 2009 at ADB headquarters. He added that Greenwood is visiting Cambodia to assess current ADB funded projects and to help Cambodia improve her economic prospects and infrastructure.

According to Samrith, Keat Chhon said, “I believe that the ADB Board Member’s meeting would approve the supplementary funding to Cambodia to accelerate its social reforms.” He added that

the Vice President was also pleased to hear of the Government’s Memorandum of Understanding signed with Australia’s Tool Holdings Limited to operate the railway after renovation of the track.

Greenwood also told the deputy prime minister that the ADB has noted increasing traffic between Cambodia and Vietnam with up to 150 vehicles per day crossing the border points.

The Vice President also paid a courtesy call to Cambodian Prime Minister Hun Sen at the Ministry of Foreign Affairs and International Cooperation.

According to Ieng Sophallet, spokesperson for the meeting, the Asian Development Bank will provide $59.4 million to Cambodia for infrastructure improvement (irrigation systems, and public transport) stimulating cross border trade, marketing Cambodian agricultural goods and deals on the global financial crisis.

He added that the additional budget would cover the next two years from year 2009. It will also be in addition to the 194 million U.S. dollars already pledged.

The Greater Mekong Sub-region (GMS) comprises Cambodia, the People's Republic of China, Lao People's Democratic Republic, Myanmar, Thailand, and Vietnam. In 1992, with ADB assistance, the six countries entered into a program of sub-regional economic cooperation, designed to enhance economic relations among the countries.

The program contributed to the development of infrastructure to enable the development and sharing of resources, and promote the free flow of goods and people in the sub-region. It has also led to international recognition of the sub-region as a growth area.

With financial assistance from the Asian Development Bank (ADB) and a number of other international development partners, February 18 2008 saw the ground breaking ceremony for the rehabilitation of the two railways. They run from Poipet to Phnom Penh and from Phnom Penh to Sihanouk province.

The rehabilitation project will provide 652 km of refurbished railway track in Banteay Meanchey province’s Sisophon district. The 266 km railway from Phnom Penh to Sihanouk province was built in 1960; the 338-kilometer long railway from Phnom Penh to Sisophon was built in 1929.