Minister of Economy and Finance Aun Porn Moniroth and German ambassador to Cambodia Christian Berger on Thursday signed two cooperative financing agreements worth 67.1 million euros, equivalent to $74 million.
According to a press release dated November 28, the German government will provide 30 million euros concessional loan and a grant of 2 million euros for financing energy efficiency projects for rural electricity supply, under the 2018 Cooperation Agreement.
The first 30 million euros concessional loan, which the German side calls the “Reduced Interest Loan,” will be granted through the German Development Bank.
Additionally, the German government will provide another 30 million euros concessional loan for rural infrastructure development projects for Cambodia and 5.1 million euros for project financing certain, under the 2019 Cooperation Agreement.
The Ministry of Economy and Finance will sign a credit agreement, and a loan agreement with the German Development Bank later to receive credit for the implementation of energy efficiency projects for rural electricity supply.
Mr Porn Moniroth said the two cooperative financing agreements represent the good friendship between the government of two nations in support of Cambodia’s social development and economy.
Mr Berger noted that disadvantaged regions and persons shall benefit from the overall economic development of a country.