Export-Import Bank Provides EDCF $120 Million for 'Cambodia Local Road Improvement Project'

Signing of Mercury-Cambodia Deputy Minister of Finance Loan Agreement
Yoon Hee-seong, Bank President: "A Foothold for SMEs and Mid-sized Companies to Expand Overseas"

On the 28th, the Korea Export-Import Bank in Yeongdeungpo-gu, Seoul, where a COVID-19 confirmed case occurred, is quiet. Photo by Moon Honam munonam@

The Export-Import Bank of Korea announced on the 17th that it has signed an Official Development Assistance Fund (EDCF) loan agreement to provide $120 million for the "Local Road Improvement Project (Phase 4)" with the Ministry of Economy and Finance of Cambodia.

President Yoon Hee-sung met with ROS Seilava, Deputy Minister of Economy and Finance, at the Yongsan Presidential Office building yesterday, in the presence of President Yoon Suk-yeol and Cambodian Prime Minister HUN Manet, and signed the loan agreement. Cambodia, a major partner country of the EDCF, ranks third in total approved support amount (cumulative approved amount of $1.95 billion) and maintains close cooperation with Korea in the fields of economy, culture, transportation, and water resources.

Under this loan agreement, the $120 million EDCF will be provided for the Local Road Improvement Project (Phase 4) in Cambodia, which involves the renovation and repair of 37 local road routes totaling 391 km across six southern provinces of Cambodia. This project is part of the transportation infrastructure construction aligned with Cambodia’s top national development strategy, the Pentagonal Strategy. Upon successful completion, the project is expected to significantly improve local accessibility by strengthening connectivity with major arterial roads, thereby greatly enhancing the living standards of local residents.

After signing the agreement, President Yoon said, "This loan agreement is the first project in Cambodia to receive support exceeding $100 million since the Korea-Cambodia Friendship Bridge Construction Project," and added, "It is expected to serve as a foothold for balanced regional development in Cambodia as well as for Korean small and medium-sized enterprises to accumulate overseas business experience and expand their global presence."

Meanwhile, at the summit event held the previous day, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok signed a contract with Cambodian Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation SOK Chenda Sophea to renew the Framework Arrangement for the Official Development Assistance Fund, increasing the scale from $1.5 billion to $3 billion and extending the period from 2022?2026 to 2022?2030.

This content was produced with the assistance of AI translation services.