Phnom Penh, Cambodia – The Agricultural and Rural Development Bank (ARDB), a member of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), has signed a Memorandum of Understanding (MoU) with Cambodia’s Ministry of Water Resources and Meteorology (MWRM) to accelerate irrigation infrastructure development. The collaboration aims to bolster agricultural productivity and rural economic growth through targeted financial support.
The MoU, formalized on Monday at the MWRM headquarters, establishes a framework for providing concessional loans to private sector entities engaged in agriculture, agro-industry, and renewable energy. This initiative aligns with national efforts to modernize irrigation networks, enhance water security, and advance Cambodia’s Food Security Policy and Rice Export Strategy.
Strategic Collaboration for Sustainable Growth
Under the agreement, ARDB will offer affordable financing to stakeholders across the agricultural value chain, enabling investments in irrigation systems that improve water access for farming and rural communities. The partnership underscores both institutions’ commitment to fostering sustainable economic development and climate resilience.
During the signing ceremony, H.E. Thor Chetha, Minister of Water Resources and Meteorology, emphasized Cambodia’s existing infrastructure, which includes 2,352 irrigation systems and eight large-scale reservoirs, servicing nearly 2 million hectares. He reiterated the Royal Government’s priority, under Prime Minister Hun Manet’s leadership, to expand and modernize water management infrastructure. Key initiatives include constructing small and large reservoirs, rehabilitating existing systems, and building flood and saltwater protection barriers.
ARDB’s Development Role
As a leading development finance institution, ARDB’s involvement highlights its pivotal role in driving Cambodia’s rural development agenda. ADFIAP Chairman, H.E. Kao Thach, ARDB’s Government Delegate and CEO, noted that the MoU strengthens synergies between public policy and private sector participation, ensuring efficient resource allocation to critical infrastructure projects.
The partnership is expected to directly support farmers, agribusinesses, and renewable energy providers, fostering job creation and economic diversification. By securing reliable water access, the initiative also aims to stabilize agricultural output, reduce vulnerability to climate shocks, and enhance Cambodia’s competitiveness in global markets.
Source for Photo Insert: https://www.khmertimeskh.com/501648179/ministry-ardb-ink-mou-to-boost-irrigation-development/