Cambodia yesterday signed deals for about US$430 million in loans from China, the latest in a number of high-profile borrowing deals with its northern neighbour.The bulk of the loans, from Export-Import Bank of China, would go towards two national road projects and a multipurpose dam in Battambang, according to documents obtained by the Post. An extension on the rehabilitation of National Road 6 alone was set to cost about $250 million.
The signing ceremony, chaired by Prime Minister Hun Sen and China Politburo Standing Committee member He Guoqiang, generated fierce criticism from the opposition Sam Rainsy Party, which called the borrowing opaque.The Kingdom signed on for $302 million in similar loans from China in February. Although an exact figure for Cambodia’s debt to China has been disputed, Minister of Economy and Finance Keat Chhon in February said the figure stood at about $1.8 billion.The prime minister yesterday touted the borrowing as a boost to the development of Cambodia.
“China’s progress has led to harmony in neighbouring countries including Cambodia,” Hun Sen’s personal adviser Eang Sophallet quoted the premier as having said.“Chinese aid has not only helped the development of Cambodia’s economy, it has also helped Cambodia to be independent.” Yesterday’s signing also included a $2 million deal with China’s biggest technology company Huawei for what the document called a “Hotline and Traffic Control Project”.
Officials at the company could not be reached.
A $550,000 hospital project donated by the China Foundation for Peace and Development, as well as the delivery of two Chinese-built MA60 aircraft, was also noted in the document.
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Cambodia takes $430m China loan
CLMV economies Outlook by EIC Q1/2021
Within the region, Vietnam’s economy is projected the fastest growth due to ongoing strong exports performance for electronics products and a resilient domestic economy.
The global recession and COVID-19 pandemic heavily affected CLMV economies in 2020, resulting in major slowdown in Vietnam and Myanmar whereas Laos and Cambodia faced economic contractions from additionally specific negative factors.(more…)
CLMV’s economic growth crashes to two-decade low due to COVID-19
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