China's loans vital to building SE Asian connectivity: Cambodia

The large loans China offered at the 9th East Asia Summit are vital to regional countries in their connectivity construction, a senior Cambodian official said on Thursday. [Special coverage]

Kao Kim Hourn, minister attached to Prime Minister Hun Sen, made the remarks at a press conference at the midnight of Thursday while returning from Myanmar with Hun Sen.

The minister said, "China always gives priority to countries in Asia. This is good news for Cambodia, ASEAN and Asia," adding that the loans "are vital for regional countries to use for connectivity construction."

Commenting on China's initiative on a treaty on good- neighborliness, friendship and cooperation between China and the Association of Southeast Asian Nations (ASEAN) members, Kao Kim Hourn said Cambodian prime minister has lent full support to the initiative.

Chheang Vannarith, senior researcher of the Cambodian Institute for Cooperation and Peace, said China's development assistance is critical in funding infrastructure development projects connecting Southeast Asia with China.

"Such intensified intra-regional inter-connectivity helps promote economic development, poverty reduction and further link China and Southeast Asian countries," he told Xinhua. "Moreover, it contributes to strategic trust building."

China on Thursday offered loans worth over $20 billion to support Southeast Asia's connectivity construction. The offer includes a preferential loan worth 10 billion dollars for ASEAN members and a 10-billion-dollar special loan set up by China Development Bank for the regional infrastructure development.