China Relations Reinforced

May 2006 | Economic Analysis

The US$600mn provided by China was equivalent to that given by international donors, illustrating the importance of the relationship to Cambodia. Around half of the money will be used to finance a new hydropower plant. This will increase Cambodia's energy capacity and should help them to extend their electricity network. At present, only 15.8% of Cambodians have access to electricity, which is well below the Asian average of 69.7%. A further US$200mn of the aid will go towards building two major new bridges. Not only will these projects improve the country's infrastructure, they will also create employment and in turn

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