APD | Cambodia got another $70 million from ADB to develop agricultural sector

By APD writer Kin Ratha

PHNOM PENH, Feb. 25 (APD) - The Asian Development Bank (ADB) has proposed a $70million project to help Cambodia increase value addition to agriculture products, export value added agriculture products, and provide fresh and quality Cambodian products to the consumers.

According to the report from ADB, the proposed project report dubbed, “Agricultural Value Chain Infrastructure Improvement Project”, which cost about $70million and will cover in the six designated provinces including Kampong Cham, Kampong Thom, Oddar Meanchey, Preah Vihear, Siem Reap, and Tboung Khmum.

ADB said the project will cost $70 million. The $2.17million of which is the grant to Cambodiaand another $67.83million is the concessional loan.

“This project will enhance the value addition in the agriculture products, reduce the middlemen in the agriculture sector, expand and strengthen the processing, packaging sector, warehouse and cooling storage, transport and strengthening the quality, safety, sanitary and phyto-sanitary. It also to reduce the export of the raw material in agriculture from cassava, paddy rice, mango, and cashew nut,” the report says.

According to the ADB, agriculture remains a crucial sector for the Cambodian economy. The sector alone, including processing, transportation, and trade of agriculture products, accounts for 33.7 percent of the gross domestic product (GDP).

It added that the agriculture sector GDP grew by 4.5 percent per annum during 2008-2012, mainly driven by the cultivated land expansion and high prices of agricultural products. While, the sector growth, however, slowed down during 2013-2016 (0.9percent per annum) because of the loss of those drivers, and extreme weather events.

ADB says agricultural products are Cambodia's second largest export products, after the textile and garment, constituting $533 million (5.2percent of total export) in 2016; nonetheless, those agriculture exports are largely in raw form and their value addition occurs in other countries.

(ASIA PACIFIC DAILY)