ASPIRE-AT

Promoter – Financial Intermediary

KINGDOM OF CAMBODIA

Location

• Cambodia

Description

The EIB financing will support Cambodia's green recovery, by focusing on strengthening the agricultural value chains and facilitating the agricultural trade. The Bank's support will contribute to improving the agricultural productivity through enabling market infrastructure for producer organisations and strengthening the enabling environment for competitive agricultural value chains, trade, food safety and certification, while attracting private sector engagement in the value chains.

Additionality and Impact

The project aims at strengthening Cambodia's agricultural sector by improving the competitiveness of selected agricultural value chains while enhancing food security and safety. It will be co-financed with the International Fund for Agricultural Development (IFAD). 

 

It will address credit constraints facing smallholder farmers due to information asymmetries and it is expected to generate positive environmental and climate externalities on account dissemination of improved agricultural practices. The project will deliver global public goods by improving food safety. It will also improve transport accessibility and contribute to making road transport more efficient, safer, and greener.

 

The EIB financing would facilitate investments in tangible assets, including enabling transport and post-harvest infrastructure, support the country's sanitary and phytosanitary capacities and the establishment of technical centres for the development and dissemination of improved agriculture techniques.

 

The operation supports the policies and strategies for sustainable and inclusive economic growth in the Kingdom of Cambodia, and it is aligned with the Multiannual Indicative Programme 2021-2027 (MIP) for Cambodia and the Team Europe Initiative (TEI) Cambodia on Sustainable Landscapes, Forest and Agriculture.

 

The project helps meeting several Sustainable Development Goals, notably SDG 1 (no poverty); SDG 2 (zero hunger); SDG 12 (responsible consumption and production) and SDG 13 (climate action, increasing resilience

to climate change).

 

The Bank provided support in the project preparation phase and will closely monitor project implementation. In addition to the loan, the EIB would be instrumental in channelling a grant funded by the EU to ensure adequate concessionally and to provide technical assistance to strengthen the Promoter's implementation capacities.

Objectives

The objective of Aspire Agricultural Services for Resilience (ASPIRE-AT) is to make smallholders farmers and rural workers benefit from inclusive and sustainable agriculture sector growth, based on exports and domestic markets. This objective will be achieved by supporting investments in tangible assets and engagement of small and medium-sized agri-enterprises in the value chains, by prioritising those with high potential for growth and exporting opportunities.

Comments

NDICI IW1 Guarantee

Sector(s)

• Agriculture, fisheries, forestry - Agriculture, forestry and fishing
• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 75 million

Total cost (Approximate amount)

EUR 147 million

Environmental aspects

The EIB will support the ASPIRE-AT Project ensuring that it complies with the EIB Environmental and Social Standards, which will be include din the applicable financing and implementation guidelines.

Procurement

The Bank will require the Promoter to ensure that the implementation of the Project will be done in accordance with the Bank's Guide to Procurement.

Status

Signed - 20/12/2024