Logo of Phnom Penh Post newspaper Phnom Penh Post - ADB offers $70M loan to improve transportation

ADB offers $70M loan to improve transportation

Takehiko Nakao, president of ADB, speaks during the organisation’s annual meeting held in Yokohama, Japan earlier this year.
Takehiko Nakao, president of ADB, speaks during the organisation’s annual meeting held in Yokohama, Japan earlier this year. Photo supplied

ADB offers $70M loan to improve transportation

The Asian Development Bank (ADB) has approved a $70 million loan to develop the Kingdom’s transportation infrastructure with the majority of the funding going towards improvements of national roads in Prey Veng, Siem Reap and Svay Rieng provinces.

The loan is part of the ADB-backed Greater Mekong Subregion Southern Economic Corridor programme aiming to link Ho Chi Minh City, Phnom Penh and Bangkok through infrastructure development to enhance the efficiency of cross-border trade, according to a press release. A focus will be on improving 147 kilometres of unsafe and flood-prone sections of national roads, while providing all-weather connectivity and climate resilience.

“In Cambodia, roads are the dominant mode of transport, making road transport critical to the country’s social and economic development. However, the road subsector in Cambodia remains inefficient and fragmented,” Oyunchimeg Erdene, a senior transport specialist at the ADB, said in the release.

“Apart from enhancing existing roads in the three focus areas, the project will also help improve the government’s capacity in road asset management.”

According to the ADB, Cambodia’s networks have low levels of connectivity and efficiency due to incomplete regulatory frameworks, low institutional capacity, little private sector participation and a lack of construction initiatives.

It said 15,400 kilometres of roads managed by the Ministry of Public Works and Transport are in need of repair or rehabilitation to enhance connectivity domestically and with neighbouring countries.

The loan will also pilot the use of a “hybrid performance-based” contract for the construction and maintenance of road works. The model aims to increase the efficiency and effectiveness of road asset management in Cambodia by expanding the scope of contractors from project executors to road managers.

MOST VIEWED

  • Kem Sokha’s daughters slam ‘liar’ Sam Rainsy over ‘smears’

    The daughters of former opposition leader Kem Sokha hit out at Sam Rainsy on Tuesday, accusing the newly nominated “acting president” of the Cambodia National Rescue Party (CNRP) of leading a “smear campaign” against their father and “repeatedly lying to the public”. The Supreme Court-dissolved

  • US Embassy urges reconciliation

    The US has urged Cambodia to restore the independence of the media, drop charges against Kem Sokha and other political prisoners, and end the prohibition of political activity by opposition parties. However, senior government officials see the request, issued by US embassy spokesman Arend C

  • Government deports 235 Chinese scammers

    THE Immigration Department of the Ministry of Interior on Thursday deported 235 Chinese nationals, 35 of whom were female, via the Phnom Penh International Airport for their part in a Voice over Internet Protocol (VoIP) online money extortion scam. The deportees were arrested on November 26 over the

  • ‘Tolerant’ PM calls for ‘unity’

    In his message on celebrating the 40th anniversary of the Kampuchean United Front for National Salvation, known by its French acronym FUNSK, Prime Minister Hun Sen said for the sake of unity in the Kingdom, he is “tolerant” to those who “acknowledged their mistakes”, and