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ADB approves 82 mln USD loan to Cambodia for improving roads along GMS economic corridors

PHNOM PENH
2021-09-29 15:17

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PHNOM PENH, Sept. 29 (Xinhua) -- The Asian Development Bank (ADB) has approved a loan of 82 million U.S. dollars to Cambodia for improving 48 km of roads in Prey Veng and Kandal provinces to boost economic development along the Greater Mekong Subregion (GMS) Southern Economic Corridor, the ADB said in a statement on Wednesday.

The new assistance is the second phase of the Road Network Improvement Project series, which aims to strengthen Cambodia's link with Vietnam and support the development of cross-border facilities in the two provinces, it said.

It added that the new upgrade will use disaster- and climate-resilient design and help the Ministry of Public Works and Transport better manage roads by reducing vehicle overloading, which often damages roads and leads to premature repairs.

ADB transport specialist Mohammad Nazrul Islam said road transport is the primary means of moving goods and people in Cambodia and between GMS countries.

"The project will expand access to education, health, and other public services among local communities, especially poor, rural residents," he said. "It will also better connect them to markets and economic opportunities through a more efficient, safe, and climate-resilient road network connecting Cambodia with Vietnam along the GMS Southern Economic Corridor."

Cambodia's economy grew 7.8 percent a year on average from 1998-2019, but suffered a 3.1 percent contraction in 2020 because of the COVID-19 pandemic, the statement said.

It added that the country's transport sector faces challenges, including insufficient infrastructure investment and sustainability, and most of Cambodia's rural roads and provincial roads are unpaved, as its national roads have limited capacity.

To address these challenges, the Cambodian government has developed a national plan to build high-quality, sustainable, and climate-resilient infrastructure that can accommodate the country's population and employment growth by 2030, the statement said, adding that the roads under the project are included in the project list of the master plan.

The first phase of the project, which was approved by ADB in 2017, covers 147 km of national roads in the provinces of Prey Veng, Siem Reap, and Svay Rieng along the GMS Southern Economic Corridor.
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