Aid given for Cambodia's railways

The Asian Development Bank and Australia on Tuesday launched a multimillion dollar project to restore Cambodia's dilapidated railway network as part of a larger goal to boost regional rail traffic and trade.

Funding for the effort includes a bank loan of $42 million and $21.5 million in grant aid from the Australian government, according to a bank news release.

Cambodia's railroads are in serious need of repair following three decades civil war and of neglect, with a 30-mile (48-kilometer) link to Thailand destroyed.

Officials at the signing ceremony said the upgraded network, to be operational by 2013, would create jobs and business opportunities; reduce road congestion, road maintenance costs and environmental degradation; and help farmers and manufacturers transport their goods to regional markets.

The ADB, OPEC and Malaysia had earlier helped fund the rehabilitation project which will cost a total of $141 million.