Cambodia and KfW Sign Three Cooperation Financing Agreements

The Royal Government of Cambodia and the German Development Bank (KfW) entered here yesterday afternoon three cooperation financing agreements of 37 million Euro or about US$41 million.

The agreements were signed by H.E. Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance, and Mr. Julian Schutz, Representative of KfW Bank.

According to the Ministry of Economy and Finance, under the signed documents, the German government will grant a US$33 million concession loan and a US$2.2 million grant aid to support the energy efficiency project for the rural electricity supply.

In addition, the German government will provide another grant aid of US$5.5 million for the second phase of the social accountability programme, which will strengthen good governance at subnational administrations.

The signing of the agreements is an important event demonstrating the advancement in friendly cooperation between the Royal Government of Cambodia and the Federal Government of Germany.

Since 1992, Germany has extended up to US$640 million as cooperation financing to Cambodia, covering key areas such as rural development, health and good governance.

Source: Agency Kampuchea Press