The European Investment Bank (EIB), the bank of the European Union, will invest €80 million (approximately $97 million) in the Irrigated Agriculture Improvement Project (IAIP) to extend the water supply and irrigation network in several provinces across Cambodia, it said.
The IAIP will improve the efficiency of irrigation systems, increasing the resilience of Cambodian agriculture to climate change. In the long term, the project will contribute to better water resources management, increased efficiency of agricultural production and, in turn, the reduction of rural poverty in Cambodia.
The project enables Cambodia to establish a National Water Resources Data Management Centre, crucial in the long term for the country’s ability to mitigate the effects of climate change on water supply and agriculture.
The European Investment Bank Vice-President Christian Kettel Thomsen said the EU bank is investing in a prosperous, safer and sustainable future for the people of Cambodia.
“Together with our partners from the Asian Development Bank and the European Union, we are making a tangible contribution to inclusive economic growth through agriculture and increasing climate and disaster resilience in the country. Our technical and financing support will make Cambodia stronger, safer and more resilient to the effects of climate change. The project will also help address Cambodia’s post-COVID-19 green recovery needs. The EIB is very proud to be recognised as a strong partner of the Royal Government of Cambodia”, said Thomsen.
Cambodian Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth said the government welcomes this.
“It is an important step towards improving living conditions and agricultural production in the country. The IAIP will also allow Cambodia to become more adaptive to climate change and improve the way we manage our water for agricultural purposes and practices. This project is a very good model of how different partners can unite around a single vision and work towards a more resilient and prosperous Cambodia,” he added.
The development of rural water and irrigation infrastructure and the introduction of sustainable agricultural practices under IAIP will also be critical to a faster post-COVID-19 green recovery of the Cambodian economy. The project will contribute to fostering gender equality and women’s participation in the rural economy, given the number of female producers engaged in subsistence agriculture.
The EIB contribution to the IAIP project increases the project`s outreach and allows the partners to develop rural irrigation infrastructure in more provinces. Additionally, it makes funding even more affordable for Cambodia. The inclusion of the bank’s environmental, social and procurement policies in the project design and supervision of their consistent application throughout the project implementation contributes by increasing the institutional capacities of the Cambodian government and the overall sustainability of the rural infrastructure.
Under this investment, approximately 200,000 people in five provinces with 51,000 hectares of arable land will benefit.
The European Investment Bank has been actively supporting the sustainable development of Cambodia since 2018. To date, the EU bank has invested about $54,820 in the country, improving access to drinkable water in the capital of Phnom Penh and rehabilitation of rural infrastructure – and with it elevating the quality of life for millions of Cambodians.
Source: Khmer Times