The Japanese government Monday gives $60 million in grants to cash strapped Cambodia for economic stability and development.
Foreign Minister Hor Nam Hong and Japanese Ambassador to Cambodia Takahashi Fumiaki signed an agreement in Prime Minister Hun Sen's presence at the Ministry of Foreign Affairs.
Some of the money will be used to improve and maintain National Highway 1 to become an international highway, linking Ho Chi Minh city, Vietnam with Bangkok, Thailand, and ASEAN highway 1, linking Bousan, South Korea to the border between Bulgaria and Turkey.
This highway will boost Cambodia's economy. The small-scale hydroelectric project for Mondul Kiri rural electrical development, Kampong Cham clean water project, and human resource cholarship development program are part of the aid budget.
Mr. Hor Nam Hong told reporters after the signing ceremony that this japanese aid is very important for Cambodia's economy.
Opposition party legislator Keo Remy welcomes the aid but warns about possible corruption.
Organization for Social Development's director Seng Theary says that the government should use this aid according to the donor's goals.