AKP Phnom Penh, March 14, 2025 --

EIB Global – the European Investment Bank’s global arm – and the Ministry of Economy and Finance (MEF) of the Kingdom of Cambodia signed here on Mar. 14 an agreement for a €15 million EU grant to support the Agriculture Services Programme for an Inclusive Rural Economy and Agricultural Trade (ASPIRE-AT).

The agreement was signed in Phnom Penh by Deputy Prime Minister and Minister of Economy and Finance H.E. Dr. Aun Pornmoniroth and EIB Vice-President Ms. Nicola Beer during her first visit to Cambodia as the EIB Vice-President responsible for Southeast Asia.

The signing ceremony took place in the presence of EU Ambassador to Cambodia H.E. Igor Driesmans and Country Director for Cambodia at the International Fund for Agricultural Development (IFAD) Mr. Frew Behabtu.

A key priority for the Cambodian government, ASPIRE-AT aims to modernise the agricultural sector, enhance food security and strengthen export potential.

This grant supplements a €60 million loan from EIB Global and €4.5 million of support from the European Union for technical assistance, which will be implemented by the European Investment Bank (EIB).

This €15 million grant brings the total of EU-backed investment in the programme to nearly €80 million (approximately US$87 million).

IFAD, the UN’s rural development agency, is co-financing the programme with US$49 million.

The EU financing will help modernise Cambodia’s agricultural sector, equipping smallholder farmers, agribusinesses and producer organisations with tools and infrastructure to boost production, provide access to new markets, and improve food safety.

The project will directly benefit 100,000 smallholder farmers and 25,000 land-poor households, creating new income opportunities – particularly in rural areas – with a strong focus on empowering women, engaging young people and supporting indigenous communities.

EIB Vice-President Ms. Nicola Beer said that the European Investment Bank is proud to support ASPIRE-AT and Cambodia’s agricultural sector, which plays a vital role in the country’s economy and food security.

“With this financing, we are helping the government to strengthen food security, increase farmers’ incomes, and open up new market opportunities for Cambodian products. It is a great example of how Team Europe delivers real impact, creating jobs, driving trade, and strengthening Cambodia’s economy,” EIB Vice-President said.

Ambassador of the European Union to the Kingdom of Cambodia H.E. Igor Driesmans said that the support will help farmers and their communities improve primary production, processing capabilities and market access through capacity building and access to financing, agricultural laboratory support, and better rural and urban connectivity.

“Together, we are helping the sector to become more inclusive and resilient, benefiting all Cambodians, and especially those in rural communities,” he said.

H.E. Dr. Aun Pornmoniroth expressed his deep appreciation to the EIB, the European Union and to IFAD for their support and cooperation in successfully designing and preparing the ASPIRE-AT programme.

He reiterated that the agreement signed today for the ASPIRE-AT programme is a testament to the increased and closer cooperation between the Government of the Kingdom of Cambodia and the EIB, the European Union and IFAD, as well as to the unwavering support of key development partners in the reform agenda of the government’s Pentagonal Strategy (Phase I), as Cambodia aims to achieve its goal of becoming an upper-middle-income country in 2030 and a high-income country in 2050.

“In this spirit, the Government of the Kingdom of Cambodia reaffirmed its commitment to fostering and strengthening future partnerships with the EIB, the European Union and IFAD across multifaceted sectors,” he said.

IFAD Country Director for Cambodia Mr.

Frew Behabtu said this significant EU grant, alongside the EIB loan and IFAD's co-financing, marks a powerful step towards transforming Cambodia's agricultural sector. IFAD is proud to be part of this collaborative effort to empower rural communities, enhance food security, and unlock the export potential that drives sustainable economic growth.
This investment will strengthen Cambodia’s agricultural infrastructure and market connectivity, supporting collection and handling facilities, warehouses, drying pads, and access roads to improve bulk produce transport.
It will also fund the Kaoh Khsach Tonlea bridge, linking the island to the mainland to enhance market access and pilot a new agricultural cooperative model. Additionally, the financing will improve food safety and quality control by supporting laboratories, research and quarantine stations and the expansion of the National Agricultural Laboratory.

These investments are strategically distributed across a range of locations in Cambodia, ensuring that they have a broad geographic impact and enable greater integration into regional and global markets.

By Chea Vannak