The World Bank (WB) has agreed to grant Cambodia aid of some 70 million U.S. dollars for three projects to boost development of rural electrification, poverty reduction and decentralization, local media said on Wednesday.
"With the delivery of these projects, the implementation of our Country Assistance Strategy is firmly back on track," said Ian Porter, WB's country director for Cambodia.
A grant of 18.5 million U.S. dollars will go towards the Greater Mekong Sub-Region Power Trade Project, which aims at lowering electricity costs in rural Cambodia, currently among the highest in the region and the world, by importing electricity from neighboring Laos and Vietnam, reported another Cambodian-language newspaper the Rasmei Kampuchea.
Cross-border transmission lines will connect Kampong Cham province in the east with Vietnam, and Stung Treng province with Laos in the northeast, halving the cost per kilowatt hour to between 0.10 and 0.15 U.S. dollar.
Visiting World Bank President Robert Zoellick said earlier this month that both the private sector and the rural citizens will benefit from price reductions, said Nisha Agrawal, WB's country manager for Cambodia.
The Poverty Reduction and Growth strategy, which focuses on private sector development, public financial management, and natural resources management to help the government achieve the United Nation's Millennium Development Goals, will receive 15 million U.S. dollars under the aid package, reported the Rasmei Kampuchea.
The remaining 36.5 million U.S. dollar will be used as additional financing for the Rural Investment and Local Governance Project, to expand its remit from 15 to 23 provinces and cities, said the Samleng Yuvechun Khmer.
"The three projects that we are signing today (Tuesday) show the World Bank's support in these three areas and signal our overall support for growth and poverty reduction in Cambodia," said Nisha Agrawal.
In June 2006, the WB froze funding to land management, water supply and sanitation projects for Cambodia when it uncovered the misappropriation of over eight million U.S. dollars, demanding the government repay all funds lost through irregularities
The bank resumed funding for the projects in February this year, citing improved methods of project governance.
Source: Xinhua
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