The UN’s International Fund for Agricultural Development (Ifad) said it will provide a $70 million loan to the government for an agricultural investment project, said its president Gilbert F Houngbo.

During a field visit to a vegetable farm in Kandal province’s Sa’ang district on Saturday, Houngbo told The Post that Ifad will provide the loan for the Sustainable Asset for Agriculture Market, Business and Trade project (Saambat).

Houngbo also met Prime Minister Hun Sen during his three-day visit to Cambodia last week.

“We have discussed [the loan] for the Saambat project, which is investing in agriculture. The loan will be approved in September this year,” said Houngbo.

He said Cambodia has seen a lot of “positive” progress, as smallholder farmers in rural areas gain greater access to loans for agricultural products.

“Cambodia’s economy has grown steadily at around seven per cent over the years. I have not seen such growth in many of the countries around the world,” he said.

The Saambat project will focus on infrastructure – including roads that connect farmers to the market, irrigation, as well as training, technology and a market for smallholder farmers in rural areas.

“Rural development projects are in general facilitated by state institutions that invest in rural infrastructures connecting producers with the market,” he said.

Ministry of Agriculture, Forestry and Fisheries undersecretary of state Hean Vanhan, who accompanied Houngbo on his field visit, hopes that the organisation will continue to help develop Cambodia’s agricultural sector through projects.

“Ifad is one of the UN’s largest international lenders in the agricultural sector. We hope that we can receive [funding for] more projects, whether they are directly linked to state institutions or civil society organisations,” said Vanhan.

Ifad country programme manager Kaushik Barua, who currently manages the Ifad portfolio in Cambodia, said the project will benefit more than 200,000 rural families in 24 provinces, of which 50 are from Sa’ang district.

“The Saambat project was also developed on a draft master plan in the agricultural sector, which is aimed at improving infrastructure,” he said.

According to Houngbo, the meeting with Hun Sen was crucial for verifying that the project aligns with the government’s vision and policy in the agricultural sector.

“We want to make sure that the government is on the right track with this project, as well as the challenges it faces in providing strategies for smallholder farmers to become entrepreneurs,” he said.