World Bank to grants $10mn to enhance Cambodian economic

03 Jun '05

4 min read

The World Bank's Board of Directors approved the Cambodia Trade Facilitation and Competitiveness Project to promote economic growth by reducing transaction costs associated with trade and investment.

The project, which is financed by a $10 million grant from the International Development Association, as well as $330,000 from the Kingdom of Cambodia, also aims to introduce transparency in investment processes including infrastructure concessions, and facilitate access of enterprises to export markets.

“Cambodia has an historic opportunity to take advantage of the opportunities offered by the WTO and the ASEAN Free Trade Area,” said H.E. Cham Prasidh, Sr. Minister of Economy and Finance. “This project provides a platform for reducing the obstacles our businesses face in converting enhanced market access into enhanced trade, employment growth, and ultimately, greater poverty reduction. By reducing the cost of importing and exporting, the project will help our garment industry weather the storm of international competition, and lay a foundation for increased exports from all sectors.”

The project builds on last year's Investment Climate Assessment and the resulting Twelve-Point Plan of Investment Climate Reforms, developed by the Government. The report highlighted the extremely high cost and long periods of time required to import and export products, characterized by a manual process of over 40 documents to import a product, and 60 to export, involving six Government Ministries.

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