$38 million food security program launched by ADB

Written by Georgia Wilkins

Thursday, 30 October 2008

In a bid to alleviate the worst effects of rising food prices on the poorest of the poor, the government and the ADB have launched a new program to help them

Photo by: GEORGIA WILKINS

Finance Minister Keat Chhon at the launch of the ADB’s emergency food security package in Battambang province on Wednesday

BATTAMBANG
THE ASIAN Development Bank launched its US$38 million Emergency Food Project Monday, choosing Pich Chenda commune in Battambang Province to begin the first round of rice handouts to Cambodians who have been the worst affected by global increased food prices.

The distribution is the first phase of a three-year project that will also provide subsidized seeds and fertilizers to farmers, as well as set up food-for-work programs.

“From today to Wednesday next week, the project will be distributing rice to 341,894 poor people, approximately 68,000 families, living in 200 communes of the provinces around the Tonle Sap lake and Oddar Meanchey,” said Arjun Goswami, ADB’s country director.

Finance Minister Keat Chhon attended the launch of the project, to which the government is committing an additional $5 million.

“Through this project, targeted at Cambodian poor people, we will not only be able to alleviate their poor living conditions…but also help many poor farmers boost agricultural yields,” Goswami said.

Farmers in Pich Chenda, an isolated farming community in Phnom Prek district near the Thai border, have been pushed to sell their products short as soaring food prices hit them earlier this year.

Despite being situated on prime agricultural land, they have no access to a market or their own processing facilities, and must rely on middlemen to buy their goods.

Answer to the crisis

The governor of Battambang, Prach Chan, said that the project was “the answer to the current crisis”.

“Increased food prices have worsened conditions,” he said.

But others, while welcoming emergency relief, called for broader measures to be

taken.

“The roads urgently need to be repaired. There is nearly no access to markets,” said Deputy Governor of Battambang and provincial project manager Sun Heng.

“Farmers need loans from creditors or banks so that they can get access to production material to process their own products,” he added.

Heng Rin, a 38-year-old widow who supports six children, said that the situation has gone from bad to worse since the food prices climbed.

“I am happy to receive the rice, but the bags will probably only last a few weeks,” she said.

Goswami told the Post after the launch that he was aware that there were multiple sets of problems.

“It’s not a crisis of availability, but a crisis of price,” he said.

China pledges $280 million in loans

Phnom Penh Post, October 28, 2008

BY CHEANG SOKHA

CHINA pledged roughly US$280 million in loans to Cambodia for infrastructure projects during Prime Minister Hun Sen’s recent trip to Beijing for the Asia-Europe (ASEM) summit, an official said.

Minister of Foreign Affairs Hor Namhong said that during the meeting between Hun Sen and Chinese Premier Wen Jiabao, China agreed to provide $200 million in loans for the construction of irrigation systems in Battambang province, power transmission lines to Phnom Penh and the repair of a road linking Kampong Thom and PreahVihear provinces.

He added that China had also agreed to provide another $80 million loan for building a 118km road from Stung Treng province to Ban- lung, the provincial capital of Ratanakkiri.

“All the overseas missions of Samdech Hun Sen bring back benefits to the country” Hor Namhong told reporters at Phnom Penh International Airport after the prime minister’s return. “Currently, China is in the process of studying the projects, and the construction will start as soon as this is finished.”

Nam Turn, governor of Kampong Thom province, said that National Road 62 had not been repaired since 1979 and that travellers spent at least six hours traversing its 164 km length. The Ministry of Public Works and Transport had already studied the project but was waiting for money he said.

“We have to build this road because it links to the border and to Preah Vthear temple,” Nam Turn said Monday.

“After it is built, there will be an easy way to tour to the temple.”

China has eclipsed the rest of the international, community as Cambodia s biggest foreign donor.

China pledges aid to Cambodia

Updated October 27, 2008 08:16:21

China has pledged 280 million US dollars in loans for infrastructure development in Cambodia.

Cambodia’s Foreign Minister Hor Namhong says China’s Premier Wen Jiabao made the pledge in talks with his Cambodian counterpart Hun Sen on the sidelines of the just-ended Asia-Europe Summit in Beijing.

Prime Minister Hun Sen has now returned to Cambodia.

Source: http://www.radioaustralia.net.au/news/stories/200810/s2401649.htm

Brief Report “ODA News and Donors’ Activities in Cambodia” Monday- Saturday October 13-18, 2008

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“ODA News and Donors’ Activities in Cambodia”

Monday- Saturday October 13-18, 2008

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Friday, October 17, 2008

1-the phnom penh post, Friday, 17 October 2008

Cambodian exchange to open in ‘09: official

$1.3m
spent annually on the stock exchange

The Korea International Cooperation Agency, which is working to establish a Cambodian securities market, says risks are necessary.

Son Sungil, deputy representative of the Korea International Cooperation Agency (KOICA) in Cambodia, said he hopes to see movement on the project by next year.

“KOICA has spent on average $1.3 million per year for the establishment of a Cambodian securities market,” he told the Post Thursday.

2- Rasmei Kampuchea Daily Newspaper Friday, October 17, 2008

Korean Expert Introduces “Cambodia Securities Market Trading”

The Ministry of Economy and Finance, the Korea International Cooperation Agency (KOICA) and the Korean Exchange (KRX) have collaborated to prepare the conference for two days to introduce prospective investors to the principles of market trading.

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Saturday, October 18, 2008

Korean Expert Introduces “Cambodia Securities Market Trading”

Rasmei Kampuchea Daily Newspaper

Friday, October 17, 2008

Phnom Penh: the private and public companies were held the conference on Thursday to get the information from Korean Expert on “Cambodia Securities Market Trading” and the registration list of securities market trading which will be established in the late 2009.

The Ministry of Economy and Finance, the Korea International Cooperation Agency (KOICA) and the Korean Exchange (KRX) have collaborated to prepare the conference for two days to introduce prospective investors to the principles of market trading.

H.E. Keat Chhon, Deputy Prime Minister and Minister of the Ministry of Economy and Finance announced at the conference that the ministry would like to introduce the Securities Market Trading to private and public companies. Therefore, the private and public companies could gather their fund to expand their own businesses.

H.E. Keat Chhon went on to say that the Ministry will establish
Securities Market on time. The establishment of securities market will provide good opportunity to the private and public companies to gather their fund for less expenditure if we compared with the expenditure which we have loan from the banks for our investment.

During the conference, they saw presenters as senior officers from the Ministry of Economy and Finance, Cambodia Securities Market Board, especially Korean Experts. They introduced the useful of securities market trading, registration list of securities market trading and principles of securities market trading in Cambodia.

Cambodian exchange to open in ‘09: official

Written by Hor Hab and George Mcleod

Friday, 17 October 2008

Despite fears of greater collapse in world markets, Cambodian officials say they are on track, with South Korean assistance, to begin trading next year

Photo by: VANDY RATTANA

Officials announced at a seminar Thursday that the launch of Cambodia’s stock exchange will go ahead as planned.

$1.3m
spent annually on the stock exchange

The Korea International Cooperation Agency, which is working to establish a Cambodian securities market, says risks are necessary.

CAMBODIA will move forward with plans to establish a stock exchange in 2009 despite concerns over the global market crisis and suggestions that it would be delayed until 2010, Finance Minister Keat Chhon announced at a seminar on the bourse Thursday.

“We will not rush to establish the stock exchange in Cambodia, but we will build a strong base, including hard and soft infrastructure,” Keat Chhon said at the InterContinental hotel.

The country is in the process of finalising securities rules and has broken ground on the exchange building, he said.

He added that the Council of Ministers has begun drafting subdecrees to implement new laws about an initial public offering.

“The establishment of a stock market will help Cambodia develop additional sources of finance currently buried in various places, and it will boost economic growth,” Keat Chhon said.

Hang Chuon Naron, secretary general of the Ministry of Economy and Finance, said the stock market will progress according to the government’s long-term financial vision for the country and is not vulnerable to the global crisis.

“We hope the stock exchange will provide longer-term finance compared to what we have relied on in the past, such as banks, national budgets, foreign aid and foreign investment,” Hang Chuon Naron told the Post Thursday.

“I think in five or 10 years, the stock exchange will play a key role in strengthening Cambodia’s financial sector, but we must proceed carefully to build trust from our people and investors,” he said.

We will not rush to establish the new stock exchange in Cambodia.

“Cambodia currently depends on about US$2.5 billion from banks and $600 million in ODA [Official Development Aid], with an additional $1.5 billion from the national budget and $867 million in foreign direct investment,” he said.

Sung Hee Hong, executive director of global business development at the Korea Exchange (KRX), said Cambodian companies are being trained in stock market fundamentals.

“We expect to provide experience, criteria and requirements for companies to be listed on the [Cambodian] exchange, but it is critical to have good companies,” he said. “Now is the time to identify good companies to be listed.”
Bretton Sciaroni, a Partner in the law firm Sciaroni & Associates, welcomed the announcement. “It’s the most detailed program we have heard so far.”

He said the exchange launch should go ahead, despite the international crisis.
“When we get back to business, [the stock exchange] will be a good thing.”

Market training

The KRX and Cambodia’s Ministry of Economy will collaborate to introduce prospective investors to the principles of market trading, he said.

“The target date of 2009 for Cambodia’s stock market will not change, even though the recent downturn in global markets and drops in stock prices worldwide have raised concerns,” Sung Hee Hong said.

He added that world markets were expected to rebound by the time Cambodia’s market went online.

Son Sungil, deputy representative of the Korea International Cooperation Agency (KOICA) in Cambodia, said he hopes to see movement on the project by next year.

“KOICA has spent on average $1.3 million per year for the establishment of a Cambodian securities market,” he told the Post Thursday.

“You have to take risks. Without risks, nothing would happen,” he said.

Jacob Montross, business finance manager at the Royal Group of Companies, said the stock market was an important step in Cambodia’s long-term development.

“Cambodia is not really ready for it, but it’s better to push forward than to wait. Otherwise, you could be waiting a very long time,” he said.

“It is possible for Cambodia [to succeed] but it is ambitious and they need to work very hard,” he said.

The country is ready because it needs alternative engines for investment opportunities, he said, adding that most people would still invest in land if they had the money.

“In every country that has one, a stock exchange fluctuates. It goes up, and it comes down,” he said.

“It will always go up and come down. There is nothing the government can do to ensure that it will only rise,” he said.

ADDITIONAL REPORTING BY CHUN SOPHAL

Brief Report “ODA News and Donors’ Activities in Cambodia” Monday- Saturday October 6-11, 2008

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Monday- Saturday October 6-11, 2008

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Wednesday, October 8, 2008

1-Koh Santepheap, Vol.41, #6467, 8.10.2008

Japan Grants US$884,955 to the Japan Mine Action Service – JMAS – to Support Ordnance Clearance in Southeast Cambodia

2- Associate Press (AP), Wednesday, October 08, 2008

Cambodia gets $35 million in emergency food aid

The Asian Development Bank announced Wednesday $35 million in emergency food aid to ease the burden of soaring food prices among some of Cambodia’s poorest people.

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Thursday, October 9, 2008

1- the phnom penh post, Thursday, 09 October 2008

ADB gives $35m in food aid to help Kingdom’s poorest

THE ADB announced Monday its official approval of an emergency food-aid package, providing US$35 million to the most vulnerable Cambodians struggling with ballooning commodities prices.

2- the phnom penh post, Thursday, 09 October 2008

Japan may slash funds for clearing land mines

Despite the possible cut, Japan announced an $884,955 aid grant to the NGO Japan Mine Action Service (JMAS) in collaboration with CMAC on Tuesday, which will be put to use in Kandal, Svay Rieng, Kampong Cham and Kampong Speu provinces, where many accidents still occur from uncleared UXOs

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Friday, October 10, 2008

The Mirror, Vol. 12, No. 581, 10 October 2008

Asian Development Bank Provides Food to Poorest Families in Cambodia

“The Asian Development Bank – ADB – announced yesterday, 8 October 2008, that it will provide emergency food, corresponding to US$35 Million, to the poorest families in Cambodia while they are challenged by the rising price of food and of fuel.

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Saturday, October 11, 2008

Asian Development Bank Provides Food to Poorest Families in Cambodia

Posted on 10 October 2008

Source: The Mirror, Vol. 12, No. 581

“The Asian Development Bank – ADB – announced yesterday, 8 October 2008, that it will provide emergency food, corresponding to US$35 Million, to the poorest families in Cambodia while they are challenged by the rising price of food and of fuel.

“The poorest families living around the Tonle Sap Lake and in poor communities in Phnom Penh will receive rice and other food. Food will be provided also to children leaning in primary classes at different education centers and at primary schools.

“The aid of the ADB will help to increase employment through ‘food-for-work’ programs, and poor farmers will receive seeds and fertilizer for increasing yields.

“Mr. Arjun Goswami, the ADB Country Representative in Cambodia, said, ‘The aid of the ADB will help half a million of the poorest Khmer people from starvation.’

“Since more than one year ago, the price of rice increased twice, and the price of meat and of fish increased between 30 and 50 percent, while farmers seriously suffered with the price of fertilizer rising three times.

“Many poor families had sold their property and asked for loans with very high interest rates for buying food, which leads to more serious poverty.

“Mr. Goswami added that “Cambodian families generally spend around 60% of their income on food, therefore, the rising price of food gravely affects the poorest families.’

“One out of three children in Cambodia suffers from malnutrition, and the present food crises increased the burden and the extent of malnutrition among children in this country.

“Mr. Goswami added, ‘The aid of the ADB aims mainly to save children from being affected by malnutrition, which can block their physical and mental growth, which causes different diseases to appear later.

“The emergency food aid package of the ADB covers US$17.5 million in grant aid and US$17.5 million as a concession loan. The Royal Government of Cambodia will contribute US$5.8 million to support this project.

“Mr. Cheam Yeap, a high ranking official of the Cambodian People’s Party, said that as a Khmer citizen, we welcome the aid provided by international organizations, especially by the ADB, that always helps us. The provision of food aid is strengthens the livelihood of the Cambodian people. Previously, we could share food for some extent.

“Mr. Cheam Yeap continued to say that the aid of the ADB is good for the Cambodian government led by Samdech Akak Moha Senapadei Dekchor Hun Sen, and it is also an achievement that the new fourth term government has received as a new gift from an international organization for the Cambodian people.”

Japan may slash funds for clearing land mines

Written by Vong Sokheng and Eleanor Ainge Roy

Thursday, 09 October 2008

Source: the phnom penh post

THE Cambodian Mine Action Center (CMAC) has expressed concern over a proposed 50 percent cut from Japan’s annual aid contribution to clear land mines and unexploded ordnance (UXOs) in Cambodia. The proposed cut would take effect in 2009.

Khem Sophoan, director general of CMAC told the Post Wednesday that the Japanese contribution is US$1.2 million, adding that 350 deminers would lose their jobs if the funds are slashed, leaving 300 hectares of land in northwestern Cambodia uncleared.

Heng Ratana, deputy director general of CMAC, told the Post Wednesday that “no decision has yet been made. The donor has given us time to lobby before the embassy marks the red line to cut off half of their aid to us”.
He added that negotiations were intensive and the stakes high.

“If the aid is halved it will drastically affect the activities of CMAC,” he said.
Khem Sophoan said a funding cut would be a disappointment, as significant progress was being made in the sector.

“We found that the number of casualties as a result of land minds and UXOs has decreased from 50 to 100 per month between the years 2000 and 2005, to only 18 in July this year,” he said.

Despite the possible cut, Japan announced an $884,955 aid grant to the NGO Japan Mine Action Service (JMAS) in collaboration with CMAC on Tuesday, which will be put to use in Kandal, Svay Rieng, Kampong Cham and Kampong Speu provinces, where many accidents still occur from uncleared UXOs.

ADB gives $35m in food aid to help Kingdom’s poorest

Written by Brendan Brady and May Kunmakara

Thursday, 09 October 2008

Source: the phnom penh post

The emergency package comes as the WFP restarts school meal program aimed at keeping poor rural students in class

The ADB’s country director Arjun Goswami at the press conference Tuesday

THE ADB announced Monday its official approval of an emergency food-aid package, providing US$35 million to the most vulnerable Cambodians struggling with ballooning commodities prices.

The $17.5 million grant and $17.5 million loan will be supplemented by $5 million from the government.

“Our target is to get food on the plate within three weeks, but we need to make sure the system is fully transparent first,” said the ADB’s country director, Arjun Goswami. He added that most of the program’s deliverables would come in the first of its three-year timeframe.

The measure will address the needs of both suppliers and consumers, distributing food rations to those most in need and selling seeds and fertilisers to farmers at a subsidised rate, the bank said. The plan also includes work-for-food programs.

The project aims to provide immediate relief to populations around the Tonle Sap lake, which have been hardest hit by rising commodities prices, according to poverty mapping conducted by the ADB and the government.

The domestic price of rice and fertiliser has doubled over the past year, while the price of meat and fish has increased      30 to 60 percent, according to the ADB. It estimates that nationwide the population has lost half a billion dollars in purchasing power due to inflation.

“Forty million is not the full need for even the Tonle Sap region. The initial quick assessment we did suggests the need for just the Tonle Sap region may be closer to $80 million or $85 million,” Goswami said.

Mahfuz Ahmed, an ADB agriculture economist overseeing the project, added:  “People have less diversified economic opportunities in the Tonle Sap area…. These are 500,000 people who are desperately poor.”

Three “slums” in Phnom Penh are also targeted for assistance. The ADB measure comes after the government requested urgent assistance in May.

Despite the country’s bounty of rice, about a quarter of the farming population are net rice purchasers as poor access to capital and processing facilities forces them to sell short to middlemen at undesirable rates.

“We are also looking at those things as part of our medium and long-term strategy,” but at the moment “are facing a short-term situation”, he said.

The bank said its relief package would complement the UN World Food Program’s recently restarted $9 million school meal scheme, which provides meals to 450,000 rural school children before they start their lessons. The WFP was forced to suspend the school meals program in May due to high food prices.