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AFD Group activity in Cambodia

 

Agence Française de Développement was authorized to operate in Cambodia in 1993 and opened its agency in Phnom Penh in the same year. PROPARCO, AFD’s private sector financing arm, was authorized to operate in Cambodia in 1996 and signed its Establishment Agreement in May 1999.
 
Volume of Group activity
 
At the end of September 2008 AFD’s financing in Cambodia totaled some €125.2 million for over fifty projects.
 
Cambodia is a Least Developed Country (LDC). AFD therefore only operates through grants allocated to the State.
 
It can also operate via concessional development aid loans that do not have a State guarantee. These loans finance profitable projects implemented by solvent companies in the public market sector.
 
 
Intervention sectors
 
The Partnership Framework Document (PFD) signed between the Kingdom of Cambodia and the French Republic in 2005 defines three concentration sectors: agriculture and food security, health and the environment and biodiversity.
 
AFD had initially received a mandate to focus its action on two sectors: rural development and the development of the Siem Reap/Angkor region. The aim wasto promote the emergence of a new economic development hub thanks to tourism resources related to the Angkor Archaeological Park.
 
AFD’s mandate was extended in 1999 and its intervention strategy oriented towards financing urban infrastructure that has direct impacts on living conditions for populations (drinking water supply in Phnom Penh, bridge reconstruction, electrification of provincial capitals…). At the same time AFD continued to finance productive investments in the rural sector in order to reduce poverty, particularly via support for family-scale rubber growing and the development of irrigated areas.
 
These past operations mean that AFD’s active portfolio of over twenty projects in the disbursement phase is currently mainly made up of agricultural projects (irrigation and production diversification) and health and urban infrastructure projects in Phnom Penh and Siem Reap/Angkor.


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Emblematic projects

Expanding health insurance coverage in Cambodia

Health indicators in Cambodia have generally improved in recent years. Nevertheless, public healthcare services remain underutilized due to their poor quality and excessive cost.
Through the increased funding of a €7-million project to expand health insurance and improve healthcare in Takeo province and the city of Phnom Penh, AFD has helped strengthen healthcare services from local clinics to provincial hospitals, benefiting nearly 540,000 inhabitants.
As the very poor are in no position to meet insurance premiums, an experimental scheme providing insurance coverage through a targeted fund financed by the government and other donors will be put into place. This micro-insurance project, with premiums of a few dollars per year paid by the policyholders, will provide access to free healthcare covering consultations, medication, tests, etc. Only long-term treatment and certain specialized interventions will not be covered.
Insurance will also cover the cost of essential ambulance transport. Nearly 100,000 people are expected to benefit from this initiative.

Emblematic projects in Cambodia


Find out more

Phnom Penh Portal

Project database in Cambodia 

Publications Cambodia

Contact details of Phnom Penh agency