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Cambodia and ADB

ADB’s country partnership strategy for Cambodia, 2019–2023 supports the country’s post-pandemic recovery by strengthening the health systems and addressing key constraints to growth, competitiveness, inclusion, and sustainability.

Member Fact Sheet, April 2022

ADB's Work in Cambodia   Download Fact Sheet

Cambodia’s economy grew by an average of 7% per annum during 2010–2019, making it one of the fastest-growing economies in the world. This rapid growth was underpinned by macroeconomic stability, openness to trade and foreign direct investment, and structural transformation led by export-oriented, labor-intensive manufacturing such as garments, travel goods, and footwear. Real gross domestic product contracted by 3.1% in 2020. The country faced its first recession in 1995 but its economy bounced back and grew by around 2% in 2021.

ADB is one of Cambodia’s largest sources of official development assistance, with an average annual lending of $329.8 million from 2016 to 2021. ADB’s support is aligned with the Cambodia’s National Strategic Development Plan 2019–2023.

ADB assisted the Government of Cambodia in its immediate response to the coronavirus disease (COVID-19) pandemic through programs to strengthen the country’s health care system; increase social assistance to the poor and vulnerable; and provide economic stimulus to businesses, including small and medium-sized enterprises. ADB committed $327.1 million in loans in 2021 to support the government’s efforts in responding to the COVID-19 pandemic by further developing core health system capacities to respond to public health threats; increasing financial inclusion and access to affordable finance by micro, small, and medium-sized enterprises (MSMEs); and improving national and provincial roads and urban services.

To date, ADB has committed 319 public sector loans, grants, and technical assistance totaling $4.2 billion to Cambodia. Cumulative loan and grant disbursements to Cambodia amount to $2.84 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s ongoing sovereign portfolio in Cambodia includes 36 loans and 7 grants worth $2 million.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Cambodia as of 31 December 2021 was $53.52 million representing 0.38% of ADB’s total private sector portfolio.

Operational challenges. ADB is working closely with the government to monitor funds and enhance the technical and institutional capacities of staff and clients, and strengthen partnerships with the government and the development partners to improve portfolio performance. Amid the impacts of the COVID-19 pandemic and some minor operational challenges, the team is incorporating new updates to meet the changing context.

Cambodia's economy to accelerate in 2022 and 2023, with strong merchandise exports and foreign direct investment inflows. Photo: ADB

COVID-19 Response

The assistance built on the support that ADB provided for Cambodia’s COVID-19 response in 2020 with a total of over $491 million in loans. This included $250 million in budget support from ADB, and $241.6 million in cofinancing from the Japan International Cooperation Agency under the COVID-19 Active Response and Expenditure Support Program (CARES). In addition, $270,000 loan funds from the Greater Mekong Subregion (GMS) Health Security Project supported Cambodia’s COVID-19 response program.

ADB also provided about $1 million in grants and technical assistance to help the government develop evidence-based policies, such as the COVID-19 gender impact assessment, IDPoor program evaluation, and the COVID-19 socioeconomic assessment. It also provided advisory support to ensure the effective implementation of the CARES Program through meetings with civil society organizations and the private sector.

Knowledge Work

ADB produced several publications and organized knowledge events in collaboration with government institutions and development partners. These included key publications Reaping the Benefits of Industry 4.0 through Skills Development in HighGrowth Industries in Southeast Asia and Agriculture, Natural Resources, and Rural Development Sector Assessment, Strategy, and Road Map. A webinar on “Digital Platforms and Cambodia’s Post-COVID-19 Economic Recovery” was jointly organized with the Ministry of Economy and Finance to discuss policies on harnessing digital platforms to restore and promote economic growth. “Women in Leadership: The Journey of Becoming” featured prominent female leaders and entrepreneurs promoting gender equality. ADB partnered with Cambodia Development Resource Institute, a leading think tank, to facilitate easier access to ADB research and publications for stakeholders.

Shareholding and Voting Power

Number of Shares Held
5,250 (0.05% of total shares)

Votes
44,364 (0.33% of total membership, 0.51% of total regional membership)

*Overall capital subscription
$73.48 million

*Paid-in capital subscription
$6.13 million

* United States dollar figures are valued at rate as of 31 December 2021.


ADB Governor: Aun Pornmoniroth
ADB Alternate Governor: Vongsey Vissoth
ADB Director: Tony McDonald (Australia)
ADB Alternate Director: David Cavanough (Australia)

Financing Partnerships

Financing partnerships enable ADB’s partner governments or their agencies, multilateral institutions, and private organizations to participate in ADB projects. The additional funds may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in Cambodia:

  • Sovereign cofinancing: $1 billion for 54 investment projects and $69.34 million for 61 technical assistance projects since 1992
  • Nonsovereign cofinancing: $75.01 million for 5 investment projects since 2004

In 2021, Cambodia received a $5 million grant cofinancing from the Japan Fund for Poverty Reduction for the Greater Mekong Subregion Health Security Project - Additional Financing.

Future Directions

ADB will focus its investments on education and skills development, agriculture, public sector management, and health to help the government address the impacts of the COVID-19 pandemic. Under ADB’s pipeline for 2022–2024, the bank will help the government develop high quality human resources with advanced skills on technology and enhance private sector engagement. More than a quarter of projected financing will be invested in education and skills development projects. About 22% of the financing will help the government develop sustainable fisheries value chains and coastal and marine ecosystems and strengthen the national water resources management and sustainable irrigation. ADB also plans to finance projects and programs to enhance economic diversity and establish a competitive and investment-friendly business environment; procure and distribute COVID-19 vaccines; and promote sustainable and green urban infrastructure, livable cities, and energy efficiency.

This article was originally published in the ADB and Cambodia: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Contacts

Cambodia Resident Mission
Asian Development Bank
29 Suramarit Boulevard (268/19)
Sangkat Chaktomuk, Khan Daun Penh
P. O. Box 2436, Phnom Penh, Cambodia
  Tel: +855 23 973200
  Fax: +855 23 973500
 Email

Ministry of Economy and Finance
Street 92, Sangkat Wat Phnom
Khan Daun Penh, Phnom Penh, Cambodia
  Tel: +855 23 724664
  Fax: +855 23 427798
 Email

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