China to lend Cambodia $50m for broadband plan

Dylan Bushell-Embling
17 Feb 2015
00:00
News
Daily News

A Chinese state bank has agreed to loan the Cambodian government $50 million to help finance a state-led broadband network project.

The Export and Import Bank of China (Exim Bank) will loan the funds to the government under a Preferential Buyer's Credit facility, Xinhua reported.

The agreement is expected to promote connectivity between China and Cambodia, potentially acting as a backbone to China's plan to build a new Silk Road Economic Belt.

Eximbank has so far invested nearly $2 billion in 52 projects in 10 countries expected to make up the trading belt.

In 2013, the Cambodian government published a draft policy aimed at expanding the availability of broadband across the nation.

Telecom research site BuddeComm notes that while Cambodia's mobile market is saturated - with a penetration rate of 134% by the end of 2013 - fixed internet take-up rates are extremely low due to limited fixed-line infrastructure.

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