- EDCF Loan $246 million to the Cambodia-Korea
Friendship Bridge Project and EDCF Loan $70 million to the Grid Reinforcement
Project in Sihanoukville.
- First achievement after renewal of the
increase to $1.5 billion in the Framework Arrangement between Korea and
Cambodia
Seoul,
December 11, 2022 - The Export-Import Bank of Korea (www.koreaexim.go.kr, “Korea Eximbank”) announced on December 11,
2022 that Economic Development Cooperation Fund (“EDCF”) provides a total of
$316 million EDCF loans to the Cambodia-Korea Friendship Bridge Project and the
Grid Reinforcement Project in Sihanoukville.
In
the presence of Cambodian Prime Minister Hun Sen, Deputy Prime Minister of
Ministry of Economy and Finance Aun Ponomoniroth and Minnie Chey, Country
Director of Phnom Penh Office of Korea Eximbank signed the EDCF loan agreement
for the Cambodia-Korea Friendship Bridge Project in Phnom Penh, Cambodia on
December 9, 2022.
EDCF
will finance $246 million to build two cable-stayed bridges connecting Phnom
Penh capital and Kandal province over Tonle Sap River and Mekong river, which
is expected to be a landmark bridge in central Phnom Penh. Currently, ferries
are the only means of transportation between the two regions. Once the bridges
are constructed across the rivers, they will be able to reduce urban traffic
congestion in downtown of Phnom Penh and improve connectivity between Kandal province
and Phnom Penh. In the long term, the new bridges will contribute to people’s
living standard in the eastern part of the Mekong River.
In
particular, the loan agreement of the Cambodia-Korea Friendship Bridge Project
is also meaningful in that it is the first achievement since the two
governments has signed EDCF Framework Arrangement of $1.5 billion for the years
2022 through 2026.
In
order to support energy sector in Cambodia, EDCF also provides $70 million loan
to the Grid Reinforcement Project in Sihanoukville to build transmission lines
and substations for stable power supply in Sihanoukville province. It is the
first EDCF loan to support Cambodia's energy sector and is expected to expand
opportunities for Korean companies to enter the Cambodian electricity market.
A
Korea Eximbank official said, "Cambodia is one of the key ODA partners of
Southeast Asia and has abundant economic cooperation potential with Korea. We
will strengthen supporting EDCF loans in areas of large-scale infrastructure
development in Cambodia and Southeast Asia as the basis for expanding our
presence in the region.”
Economic Development Cooperation Fund (EDCF): It
is a form of Korean official development aid established by the Korean
government in 1987. Korea Eximbank has been entrusted by the Ministry of
Strategy and Finance to operate and manage the EDCF. It provides long-term
low-interest loans to support industrial development and economic stability in
developing countries and promote economic exchanges between developing
countries and Korea.