World Bank suspends 3 projects funds for Cambodia

The World Bank announced Tuesday that it decided to suspend funding on three projects in Cambodia because of corruption, local media reported Wednesday.

The suspension involved the Ministry of Land Management's 28.8 million U.S. dollars Land Management and Administration Project ( LMAP), the Transportation and Rural Development Ministry's 21.2 million Provincial and Rural Infrastructure Project (PRIP) and the Industry Ministry's 18.4 million Provincial and Peri-Urban Water Supply and Sanitation Project (PPWSP), The Cambodia Daily reported.

"The investigations... over the past year have uncovered sufficient evidence to substantiate allegations of fraud and corruption under certain contracts in each of these World Bank funded projects," the statement, e-mailed on Tuesday night, said.

"The World Bank has now decided to suspend disbursements with respect to part of three ongoing projects LMAP, PRIP, PPWSP," it added.

However, the Bank said that "suspension entails a temporary freeze on the World Bank's financing of implementation; it does not mean that the World Bank withdraws from the concerned project. "

The Bank said it will step up its supervision, dialogue and other activities to help the government in its efforts to meet the conditions for lifting the suspension.

Cambodia, one of world's poorest countries, relies heavily on foreign aid.

Source: Xinhua