EIB’s EUR 51m loan to back 200,000 Cambodian families

03 / 02 / 2020

By Marwa Nassar - -

The European Investment Bank (EIB) extended a EUR 51 million loan to back up to 200,000 Cambodian families in rural areas as the funds will pour into the Sustainable Assets for Agriculture Markets, Business and Trade project (SAAMBAT).

SAAMBAT is a $ 125m rural development project and a partnership between the International Fund for Agricultural Development (IFAD), the EIB and Royal Government of Cambodia; the project was launched on 3 February 2020 in Phnom Penh.

SAAMBAT will improve roads, road safety and resilience to natural hazards, as well as other key rural infrastructure, such as local markets, vital to Cambodia, where two-thirds of all rural households annually face seasonal food shortages due to underdeveloped infrastructure.

The project will also create up to 4,500 jobs and 500 new SMEs, and train 25,000 Cambodians on use of digital technologies to improve their businesses and increase trade. Special emphasize will be on creating business and employment opportunities of the rural youth.

Andrew McDowell, Vice President of the EIB, said: “As the European Union`s bank, the EIB is particularly happy to support SAAMBAT and make a direct contribution to improve the quality of life for Cambodians in rural locations. The partnership with the Government of Cambodia and IFAD is an excellent example of how international collaboration can effectively deliver positive and tangible change to rural communities. The many activities under the SAAMBAT project will create jobs and make communities more resilient, reduce poverty and protect rural communities from negative social and economic changes.”

Kaushik Barua, IFAD Country Director, Cambodia said: “With this project we are focusing on building sustainable and inclusive rural infrastructure, including roads and marketplaces; building rural capacity; and linking rural communities, especially young people, to relevant skills and technologies. We are grateful to our national partners including the Ministry of Economy and Finance, the Ministry of Rural Development and the rural communities and youth who provided their ideas and feedback to IFAD. And of course to the European Investment Bank for investing in this partnership with IFAD.”

Luca Lazzaroli, Director General and Deputy Head of Operations of the EIB said: “SAAMBAT project underlines the commitment of the European Investment Bank and the European Union to sustainable economic and social development of Cambodia. With this project, and within just two years, the EIB invested over EUR 140 million in Cambodia, improving water supply and transport networks in the country, improving the quality of lives of millions of Cambodians. The EIB looks forward expanding this cooperation.”

The SAAMBAT project is financed from a $ 53.3m loan and a $ 1.2m grant from IFAD, a EUR 51m loan from EIB and $ 12.41m contribution from the Royal Government of Cambodia.