The Asian Development Bank is considering two $20 million loans to a water resource management program in Kompong Thom province and a rural credit program to support small business in rural areas, ADB’s country representative said Sunday.
M E Tusneem, visiting deputy director for the bank’s agriculture and social sectors department, told Water Resource Minister Lim Kean Hor and Rural Development Bank President Son Koun Thor the two loans will likely be approved by the bank’s Board of Executives next year, representative Urooj Malik said.
The water resource management project is to rehabilitate irrigation systems in Stung Chinit district in Kompong Thom, develop a hydropower plant and build human resources at the community level to well manage the limited natural resource, Malik said. The $20 million project is part of the bank’s promised long-term commitment to the development and strengthening of water resource sector, he said.
“Better management of water resources is a key to economic growth in agriculture,” he said.
The Water Resource Ministry is now conducting a feasibility study on the project, Malik said. Details of the project will be determined after the study is completed early next year, he added. The major donor is also considering another $20 million loan to the Rural Development Bank’s credit program, according to the bank.
After a series of “constructive discussions” on ADB’s future contribution with senior officials, Tusneem left Cambodia on Sunday, Malik said.
His visit came one week after bank’s Vice President Myoung-Ho Shin visited Phnom Penh to meet top government leaders.