US$10 Million Agreement on Rice Warehouse and Silo Installation Signed

Agreement has been reached to build rice warehouses and silos in three provinces, which will contribute essentially to enhancing capacity of rice processing for exports to international markets.

The agreement was signed lately by Rice-SDP (Climate Resilient Rice Commercialisation Sector Development Programme) of the Ministry of Economy and Finance, Rural Development Bank (RDB), and rice millers.

Under the agreement, selected rice millers will build rice warehouses and silos in three provinces of Battambang, Kampong Thom, and Prey Veng using US$10 million loan from the Asia Development Bank (ADB) through RDB.

Rice processing facilities are needed as Cambodia sets its goal to export a million tons of milled rice to international markets in the next three years.

So far, warehouses and silos were built in Battambang, Kampong Thom, Prey Veng, and Takeo provinces, through US$30 million emergency loan which is government-led loan scheme through RDB to rice millers.

With increased capacity to 5,000 tons for rice warehouses and 1,500 tons for silos in a bid to expand rice storage in the harvest season, the US$30 million for loans to build rice warehouses and silos carry five percent interest rate and repayments over ten years.

Source: Agency Kampuchea Press