Cambodia Investment Review

ADB Inaugurates New Office in Cambodia with Deputy PM and ADB President

ADB Inaugurates New Office in Cambodia with Deputy PM and ADB President

Cambodia Investment Review

Asian Development Bank (ADB) President Masatsugu Asakawa and Cambodia’s Deputy Prime Minister and Minister of Economy and Finance H.E. Dr. Aun Pornmoniroth officially opened ADB’s new resident mission in Cambodia, marking a significant step in the ongoing partnership between the development bank and the country. The inauguration comes on the heels of the release of ADB’s latest country partnership strategy for Cambodia, set to span from 2024 to 2028.

In his remarks at the inauguration ceremony, Mr. Asakawa emphasized the significance of the new office as a symbol of the robust relationship and shared development goals between ADB and Cambodia. “Today is not just a celebration of a new and modern office, but a recognition of the deep bonds and shared development goals between ADB and Cambodia,” he stated. He highlighted that the new country partnership strategy is meticulously crafted to meet Cambodia’s development needs, focusing on key areas such as economic diversification, human capital development, and climate resilience.

Sustainability, Climate-Friendly & Energy-Efficient

The newly opened office is designed with a strong emphasis on sustainability, incorporating climate-friendly materials and energy-efficient systems. It also integrates several traditional Cambodian cultural motifs, reflecting the nation’s rich heritage. Mr. Asakawa noted that this move underscores ADB’s commitment to sustainability and providing a conducive working environment for its staff.

Read More: ADB Unveils New Country Partnership Strategy 2024 – 2028 Aligned With The First Phase Of The National Pentagonal Strategy

H.E. Dr. Aun Pornmoniroth acknowledged the long-standing relationship between ADB and Cambodia, noting the significant contributions ADB has made to the country’s development. “ADB has been a long-standing and trusted development partner of Cambodia, contributing significantly to the country’s development,” he said. He further mentioned that the inauguration coincides with the launch of the new country partnership strategy for 2024-2028.

ADB Inaugurates New Office at Vattanac Tower on June 12th 2024.

Under this strategy, ADB has committed approximately $1.26 billion to support Cambodia’s sustainable development and economic growth. “This new strategy further cements our commitment to sustainable development and economic growth in Cambodia,” Dr. Aun Pornmoniroth added.

Accelerate Private-Sector-Led Economic Diversification

The 5-year strategy focuses on collaborating with the government and other partners to accelerate private-sector-led economic diversification, advance human development, and enhance climate resilience. The comprehensive plan also integrates crosscutting priorities to address climate change, strengthen governance and institutional capacity, improve gender equality, promote digitalization, and deepen regional cooperation and integration.

Despite these challenges, the report suggests that reducing its carbon footprint presents new growth opportunities for Cambodia. As global demand for environmentally sustainable products and services rises, transitioning to a net-zero economy could create higher-quality jobs and attract global investors interested in green investment.

“Despite weaker global demand, Cambodia’s economy continued to perform well in 2022 led by ongoing tourism recovery,” said Jyotsana Varma, ADB Country Director for Cambodia. “Cambodia’s economic outlook is positive with robust growth, a shrinking current account deficit, and moderate inflation in 2023.”

Technical Assistance Projects, Amounting To $4.8 Billion

ADB’s engagement in Cambodia has been extensive and impactful. As of 31 December 2023, the bank has committed a total of 339 public sector loans, grants, and technical assistance projects, amounting to $4.8 billion. ADB’s active sovereign projects in Cambodia currently include 34 loans and 8 grants, collectively worth $1.92 billion. Cambodia, a founding member of ADB since 1966, saw its first ADB-supported project implemented in 1970.

Cambodia’s economy is forecast to grow at 5.5% in 2023 and 6.0% in 2024, driven by a stronger tourism recovery and higher growth in the services sector, according to the ADB report.

ADB Inaugurates New Office at Vattanac Tower on June 12th 2024.

The inauguration of the new office not only represents a milestone in the ADB-Cambodia partnership but also aligns with ADB’s broader mission to foster a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. Established in 1966, ADB continues its efforts to eradicate extreme poverty and support sustainable development across the region. The bank is owned by 68 members, with 49 from the region.

The new office is expected to enhance ADB’s operational efficiency and effectiveness in Cambodia, providing a modern and collaborative workspace that reflects both the institution’s values and the cultural heritage of the host country.

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