Cambodia approves US$12.8 bil for 629 government projects

Thong Sotha​​   On October 12, 2020 - 2:39 pm​   In Investment   0  
Cambodia approves US$12.8 bil for 629 government projects Cambodia approves US$12.8 bil for 629 government projects

The Council of Ministers approved the draft of a $12.8 billion three-year rolling public investment program (2021-2023) at a Council of Ministers meeting on Friday to ensure the continued development of public sector projects in the Kingdom.

The results of the meeting chaired by Prime Minister Hun Sen show that the government will use the investment to fund a total of 629 projects.

The government will spend $8.4 billion on 203 ongoing projects and $4.4 billion on 426 projects as it works on implementing the National Strategic Development Plan 2019-2023.

About 8.9% of the total budget will be disbursed for social projects, 34.2% for economic projects, 50.1% for infrastructure projects and 6.8% for services and inter-sector projects.

According to government spokesman Phay Siphan, the public investment program aims to present data on the high-priority projects, a policy set out in the government’s Rectangular Strategy Phase IV and a roadmap for the implementation of the policies set out in the National Strategic Development Plan 2019-2023.

He added that according to the evaluation of the implementation of the National Strategic Development Plan 2014-2018 contained in Chapter 2 of the National Strategic Development Plan 2019-2023, some progress has been achieved while some challenges persist.

“Addressing these challenges requires more efforts to achieve annual economic growth of around 7% and priority directions that support the poor in rural areas, as well as agricultural and rural development through the promotion of agricultural productivity and diversification, as defined in the Rectangular Strategy Phase IV and the National Strategic Development Plan 2019-2023.”

These tasks are the only priority that can provide immediate and long-term benefits, as well as provide a rapid social security network for the poor, who mostly live in rural areas. The goal is also to increase their purchase power and wellbeing by ensuring sustainable economic growth and promoting diversification and expansion of the wider economic base, ” he said.

Lim Heng, vice-president of the Cambodia Chamber of Commerce, said part of the government’s public development budget comes from international development partners. Disbursing more funding for infrastructure development will further support local agriculture and tourism to grow to another level.

“We have a clear development plan because our donors also want to know about these plans to continue to provide more funds, and we, the private sector, are very supportive. Increasing the public investment size in infrastructure projects is good for the national economy and the private sector, ” he said.

The draft of the public investment program for 2021-2023 has four chapters and 11 table lists.

Hun Sen said at the Cabinet meeting that in the context of Covid-19, Cambodia has benefited from sound financial management, with the government being able to adequately release funds to support public development programs such as infrastructure construction and small-scale projects at the local level.