Minister of Economy and Finance Aun Pornmoniroth and European Commissioner for International Partnerships Jutta Urpilainen signed the grant agreement on March 12. Economy Ministry
The EU has provided £89 million ($97 million) in grant funding to Cambodia to support development across four sectors: agriculture and food, energy, technical training and trade.
The four new programmes focus on promoting sustainable value chains, energy efficiency and renewable power, aiming to reduce dependence on fossil fuels, strengthen energy security and integrate Cambodian products into regional and international markets.
Minister of Economy and Finance Aun Pornmoniroth and European Commissioner for International Partnerships Jutta Urpilainen signed the grant agreement on March 12 at the finance ministry in Phnom Penh.
The first programme, Cambodia Partnership for Sustainable Agriculture and Food Systems (EU CAPSAFE), aims to increase cashew and pepper productivity and promote sustainable agriculture through green technology, agro-ecology and environmental investment in agro-industrial production and processing.
The second, the EU Partnership for Sustainable Energy Practices in Industry, aims to enhance collaboration between the Cambodian garment, footwear and travel goods (GFT) industry and the government to promote energy efficiency and renewable energy measures, particularly focused on solar power for factories.
The Transforming Technical Education EU-Cambodia Partnership for 2024-27 aims to support science, technology, engineering and mathematics (STEM) training at the secondary and university levels, focusing on green energy, information technology and robotics to enhance the country’s competitiveness in the ASEAN region.
The EU Global Access, Trade Expertise (EU GATE) initiative aims to streamline customs procedures and cross-border trade facilitation, enhancing the country’s connectivity in the ASEAN region and access to global markets, particularly the EU.
During the signing ceremony, Pornmoniroth stated that the four new programmes were organised under the framework of a new EU strategy called Global Gateway through the Team Europe approach.
He said the initiatives aim to support the Kingdom’s integration into ASEAN by promoting green economic growth and decent work in two areas: landscape, forestry and agriculture; and green energy and industrial value chains.
The minister highlighted that the purpose of the four undertakings is to effectively respond to the policies of the 7th mandate government, especially the Pentagonal Strategy-Phase I set by Prime Minister Hun Manet.
“These grants will be used effectively, transparently and accountably for the benefit of the Cambodian people,” Pornmoniroth affirmed.
Urpilainen stated that the signing event was a testament to the commitment of all parties to strengthening the benefits from ASEAN integration to accelerate trade and sustain growth.
She stressed the importance of this for Cambodia as it sits at the heart of the Mekong region, where new business opportunities can generate green, gainful employment for the young population.
Urpilainen noted that the EU, as a unique union of 27 member states, is built on the basis of closer cooperation and people-to-people exchange.
She said there exists a longstanding partnership with Cambodia, including strong economic ties, with the EU being the second-largest market for Cambodian exports.
“As we move to the implementation of the four programmes, let us embrace the spirit of partnership, innovation and shared goals. Because together, we have the opportunity to shape a future where Cambodia and Cambodians thrive and create opportunities for further investments under the Global Gateway,” she added.
