Cambodia

Rural Cambodia lacks schools and roads. For this reason, KfW financed over 2,500 kilometres of rural roads, as well as 80 bridges, 48 primary schools and eleven markets using budget funds on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) since the mid-1990ies.

In many ways, this infrastructure improves the economic and social living conditions of the population. Better roads shorten journey times and lower transport costs. People who were previously isolated are now able to send their children to school and reach health care stations and hospitals more quickly. Thanks to the roads, the subsistence farmers can also produce goods for the market, and in turn generate higher incomes.

Currently, KfW is planning new programmes which will provide a livelihood for landless farmers. KfW is also focusing on indigenous communities, who are then able to continue their traditional way of living because of enhanced infrastructure.

Rural areas in particular are often affected by power failures. At the same time, there is nowhere in Asia where customers pay so much for energy as in Cambodia. Both these factors have a negative impact on economic development. This is why KfW, on behalf of the German government, have already financed transmission lines and transformer stations, as well as connecting villages to the power network.

By and large, KfW investments lead to sustainably improved living conditions for disadvantaged populations. Trade increases, the regional economy grows, new jobs and additional income is generated. KfW promotes this development by also extending loans to micro, small and medium-sized enterprises in rural areas via partner banks. In addition to this, KfW is supporting two of the largest micro-finance institutions ACLEDA Bank and the AMRET in expanding their products and services for this target group.

Despite all the progress in health care provision, too many mothers and babies still die in Cambodia. Every second birth is still a home-birth and every fourth one takes place without the presence of a doctor or a qualified midwife. One of KfW's most important issues in Cambodia is lowering the infant and maternal mortality rates and supporting women in family planning matters. For this reason, KfW financed a three phase family planning programme which provided contraceptives and basic medi-cines. The programme also included qualifying measures for midwives and establishment of a regional training centre for them in Kampot. In the meantime, maternal mortality fell from 472 pro 100,000 live births in 2005, to 170 in 2014. Infant mortality also fell from 66 to 45 per 100,000 live births from 2005 to 2010. This programme was phased out at the end of 2012. However, KfW has continued its commitment in the health sector.

The focus of cooperation with the Cambodian health care sector was shifted and the "social health protection" programme was launched. To this end, BMZ has provided EUR 15.5 million via KfW, allowing disadvantaged and needy women to utilise qualified help during pregnancy and birth, by means of a voucher system. There are also vouchers available for family planning. In six provinces, the share of births accompanied by professional medical staff has risen to 67 to 94 %.

In future, KfW and other donors will participate in the Cambodian health care reform programme through so-called basket funding, on behalf of the German government. Poor strata of society will be able to use these funds for seeing doctors, attending health care centres and benefiting from preventative health care services and treatment. Additionally, the donors are undertaking capacity building at institutions to enable the recipients to manage their processes more efficiently. Additionally, a Health Fund for improving demand-driven health financing for the poor is being established. Likewise, performance based grants for hospitals and district administrations are awarded.

Project example - Healthcare vouchers  (PDF, 462 KB, non-accessible)