Team Europe continues to invest in development of rural Cambodia with EUR 15 million grant from the EU

• EIB secures EUR 15 million grant from the EU for Sustainable Assets for Agriculture Markets, Business and Trade project (SAAMBAT) in Cambodia;
• SAAMBAT project is designed to improve rural roads, nation-wide connectivity, resilience to natural hazards, and tackle seasonal food shortages;
• The project will improve living conditions for 200,000 rural families, create 4500 jobs with special emphasize on youth, and 500 new SMEs throughout Cambodia;

The European Investment Bank, the bank of the European Union, secured a EUR 15 million grant from the EU to accelerate implementation of the Sustainable Assets for Agriculture Markets, Business and Trade project (SAAMBAT). The grant includes EUR 1.5 million earmarked for technical assistance in project preparation key to faster implementation of the SAAMBAT project.

SAAMBAT is a EUR 105 million-partnership investment from the International Fund for Agricultural Development (IFAD), the EIB and the Royal Government of Cambodia, designed to improve quality of living and doing business for some 200,000 Cambodian rural families with year-round reliable and safer road networks, better rural infrastructure and reliable food supply.

With the Team Europe, IFAD investments and grants, and funds from the Royal Government, Cambodia will construct some 650km of hard-paved and 150km of gravel roads, as well as improve 50 rural market areas and about 25 other value chain logistics facilities (ferry landings, produce collection points etc.)

The EIB initially invested EUR 51.5 million in the project and complemented this investment with additional EUR 13.7 million provided as a part of Team Europe support for faster recovery of the Kingdom of Cambodia from the COVID-19 pandemic.

Vice President of the EIB, Kris Peeters, who is in charge of EIB operations in Cambodia, said: “The EIB is very proud of our continued contribution to faster recovery of Cambodia from COVID-19 pandemic but also to its long-term, sustainable and green development. As a part of the Team Europe we are really happy to be recognized by the Royal Government of Cambodia as a reliable partners in building a stronger, more resilient and safer Cambodia. This EU grant is another step in bringing the EU and Cambodia even closer together as partners and more importantly a step that will have a direct impact on the quality of life for hundreds of thousands of Cambodians.”

Head of Cooperation at the EU Delegation to Cambodia, Bryan Fornari, said: “We are pleased to be part of the rural road project, SAAMBAT, which will see thousands of Cambodia’s rural lives improved. With 105 million Euro of investment in Cambodia, SAAMBAT will help farmers and rural families to have better access to markets, supporting the growth of SMEs in the agriculture sector. This will contribute to the growth of rural economy and create new job opportunities in Cambodia's countryside. Through our work with European Investment Bank, this project brings the spirit of Team Europe to our partnership with the Royal Government of Cambodia, together with IFAD.”

His Excellency Hem Vanndy, Secretary of State, Ministry of Economy and Finance of the Kingdom of Cambodia: “The Royal Government of Cambodia welcomes the EUR 15 million grant from the European Union to SAAMBAT programme. The grant resources are an important contribution to the faster and sustainable development of rural communities of Cambodia and green recovery from the global COVID19 pandemic. Extending the benefits from the previously signed EIB financing support, the EU grant will reinforce Cambodia`s climate change adaptation efforts and as such it represents a valuable investment in safer future for our people and long-term sustainability of our national economy. We are very happy to see the Team Europe providing hands-on support to the efforts of the Royal Government of Cambodia to build a safer, sustainable and prosperous future for our citizens.”

Key investment in better infrastructure, resilient rural economy and reliable food supply

SAAMBAT project will finance road infrastructure improvement, road safety and country`s resilience to natural hazards, and support development of key rural infrastructure, such as the 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.

In the long term, SAAMBAT strengthens Cambodia’s integration in the greater Mekong Sub-region (GMS) and with its ASEAN partners, supporting at the same time EU-Asia Connectivity Strategy.

The project is financed from a USD 53.3m loan and a USD 1.2m grant from IFAD, a EUR 65.2 m loan from the EIB and USD 12.41m contribution from the Royal Government of Cambodia.

Notes to Editors:

About EIB:

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

About EIB in Asia:

For 25 years, the EIB has supported economic development in Asia and the Pacific region through projects ranging from cutting travel times for people of Bangalore with a new metro line, to providing cheaper, cleaner energy to western Nepal.

In Asia, the EIB focus is our lending on climate action across all sectors. Through our financing, we act as a catalyst to attract the funding needed to meet the UN’s Sustainable Development Goals for 2030. We also work to include gender equality in our projects, ensuring that women, men, girls and boys can benefit from projects equally and equitably.

About IFAD:

International Fund for Agricultural Development invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided about US$22.4 billion in grants and low-interest loans to projects that have reached some 512 million people. IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN’s food and agriculture hub.

Press contacts:

European Investment Bank

Tibor Jona, t.jona@eib.org, tel.: +352 691 287 052

Website: www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org

Khmer translation, click