NEWSLETTER

KAS CAMBODIA OFFICE

The following articles are a composition of 24th EDITION August 2012 last two weeks’ (24.07.-10.08.) press re- leases in Cambodia. They give a review on JANINA KANDT current developments in the country. Content

ASEAN ECONOMIC SUMMIT TO TAKE PLACE IN AUGUST  Page 1 Between the 27th of August and the 1st of Sep- ASEAN ECONOMIC SUMMIT tember the annual meeting of the ASEAN eco- TO TAKE PLACE IN AUGUST nomic ministers will take place in Siem Reap, Page 2 according to Minister of Commerce Cham SOUTH CHINA SEA: NEW AP- Prasidh. Focal issues will the trade liberalization PROACH TO RESOLVE CON- and ASEAN’s economic cooperation with Aus- FLICT tralia, Canada, China, India, Japan, South Ko- NEW TRAFFIC LAW RE- rea, New Zealand, Russia and the United QUIRED States. Further topics will be the ASEAN Eco-  Page 3 nomic Community and cooperation between PRINCE NORODOM RANA- Source: khmerlogue1 Cambodia, Laos, Myanmar and Vietnam, a re- RIDDH QUITS POLITICS port stated. Cham Prasidh added that Cambodia as the host country will push forward plans NUN SEN: OPPOSITION PAR- for inclusive growth to eliminate the development gap between ASEAN member states. TIES’ MERGER NO IMPACT

ON CPP Further Reading:  Page 4 Growth to be the focus of ASEAN economic summit: CAMBODIA’S ELECTRICITY http://www.phnompenhpost.com/index.php/2012080757848/Business/growth-to-be-the- OUTLOOK focus-of-asean-economic-summit.html HUN SEN GIVES FIVE-HOUR ASEAN economic community good for Cambodia: SPEECH http://www.phnompenhpost.com/index.php/2012080357787/Business/aec-good-for-  Page 5 cambodia.html ANTI-CORRUPTION UNIT: Analysis: ASEAN path to economic union muddied by South China Sea: STRICTER SANCTIONS FOR http://www.msnbc.msn.com/id/48427696#.UCdhQZ3N_wM BRIBES

SWISS-CAMBODIAN TIES TO

BE STRENGTHENED

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NEWSLETTER KAS SOUTH CHINA SEA: NEW APPROACH TO RESOLVE CONFLICT CAMBODIA OFFICE Against the background that the annual meet- 24th ED ITION | AUGUST 2012 ing of the ASEAN foreign ministers last month could not reach a joint statement on the dis- JANINA KANDT putes over territories in the South China Sea, a Vietnamese lawyer stressed that the ASEAN www.kas.de members should adopt a similar approach www.kas.de/kambodscha adopted by China and Vietnam to deal with ter- ritorial issues. While Cambodia wanted to fol- low a bilateral solution the Philippines and Vi- etnam supported a multilateral approach. The Source: bbc2 agreement China and Vietnam adopted did not involve any other country which was not directly involved in territorial disputes.

Further Reading: ASEAN should consider Vietnam-China model for South China Sea: http://www.thecambodiaherald.com/cambodia/detail/1?page=11&token=NDlmOTRmMWQz OWMwNzFhYjA3ZTYyNzBhYTZhMTg3 Philippines and Cambodia in South China Sea row: http://www.bbc.co.uk/news/world-asia-19073987

NEW TRAFFIC LAW REQUIRED On the 2nd of August, the National Road Safety Committee (NRSC) requested officials from several ministries to approve the draft of a new traffic law that has been with the Council of Ministers for two years. The current traffic law, which was implemented in 2007, would be far too complex according to Public Works and Transport Minister Tram Iv Tek. A new traffic law would be necessary to increase safety on the roads. The traffic death toll nearly reached Source: skyscrapercity3 2,000 in 2011 and according to a report from the Road Crash and Victim Information System, 95% of accidents were caused by driver error with about 50% resulting from speeding.

Further Reading: Push for new traffic law: http://www.phnompenhpost.com/index.php/2012080357799/National-news/push-for-new- traffic-law.html Road Crash And Victim Information System: http://www.roadsafetycambodia.info/km/national-rs-action-plans/-/road-crash-and-victim- information-system.html?tmpl=component&print=1&page=

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NEWSLETTER KAS PRINCE NORODOM RANARIDDH QUITS POLITICS CAMBODIA OFFICE On Friday, 10th of August Prince Norodom Ran- 24th ED ITION | AUGUST 2012 ariddh, leader of the royalist Norodom Rana- riddh Party (NRP) informed the public that he JANINA KANDT would leave politics and that he would not take any responsibility for decision made by the par- www.kas.de ty. This announcement was a reaction to his www.kas.de/kambodscha accuse by senior officials from Funcinpec and his own party, of being an obstacle to the planned merger between Funcinpec and NRP.

Source: CamboMedia4

Further Reading: Cambodian Prince quits politics for second time: http://www.thecambodiaherald.com/cambodia/detail/1?page=11&token=OGIwNjMyYTM2M Tg5MTAyYjRiMjc2NjdjMTE0ODI3 Royalist parties to merge regardless of prince: http://www.phnompenhpost.com/index.php/2012080357797/National-news/royalists-will- merge-royal-not-necessary.html

NUN SEN: OPPOSITION PARTIES’ MERGER NO IMPACT ON CPP Prime Minister Hun Sen reacted on last month’s merger between the largest opposition parties Sam Rainsy Party (SRP) and Human Rights Party (HRP) with no concern. Hun Sen vice president of the ruling Cambodian People’s Par- ty (CPP) and Prime Minister for 27 years, does not regard the newly formed Cambodia Demo- cratic Movement for National Rescue as a com- petitor in next year’s election. According to him the movement would not even have a slight Source: khmerization5 impact on the CPP.

Further Reading: Cambodia’s ruling party ‘no concern’ over merger plan of two main opposition parties: http://news.xinhuanet.com/english/world/2012-08/01/c_131753714.htm Opposition ‘wedding’ gets reception: http://www.phnompenhpost.com/index.php/2012073057700/National-news/opposition- wedding-gets-reception.html

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NEWSLETTER KAS CAMBODIA’S ELECTRICITY OUTLOOK CAMBODIA OFFICE The Economic Research Institute for ASEAN 24th ED ITION | AUGUST 2012 and East Asia found out that Cambodia would have to invest about $100 million to meet the JANINA KANDT electricity demand in the rural areas of the country. Currently around 60% of the country www.kas.de is still without electricity. Toch Sovanna, direc- www.kas.de/kambodscha tor of the Department of Energy Technics at the Ministry of Industry stated at the Second East Asia Summit Energy Efficiency Conference on the 1st of August that this would mean a Source: everyday6 need of $1 billion over the years. The confer- ence aimed at the development of renewable energy projects to reduce Cambodia’s de- pendency on diesel consumption. The government plans to have spread the national elec- tricity grid to 70% of the country by 2030.

Further Reading: Rural power in need of $1bn: http://www.phnompenhpost.com/index.php/2012080257768/Business/rural-power-in- need-of-1bn.html At least $100mln a year needed for rural electrification: http://www.thecambodiaherald.com/cambodia/detail/1?page=13&token=ZDY4YzY5Y2Q4MT hjZjExOTAzNDFlMzEwNDM3NmZh Economic Research Institute for ASEAN and East Asia - Cambodia Energy Outlook: http://www.eria.org/events/3.%20Mr.Victor%20Jona%20- %20Energy%20Efficiency%20Challenge%20and%20Opportunities%20in%20Cambodia.pdf

HUN SEN GIVES FIVE-HOUR SPEECH On Thursday, 9th of August Prime Minister Hun Sen gave a five-hour speech to the National Assembly in which he outlined a strategy on the resolution of the border dispute with Vi- etnam. At the moment Cambodians would live on 2,160.6 hectares of Vietnamese territory and Vietnamese people would live on 916.7 hectares of Cambodian territory, he stated. Ac- cording to him both countries had already agreed on land that will be exchanged. Includ- Source: boston.com7 ed is land in Kampot, Kampong Cham and Takeo provinces as well as in Prey Veng and Svay Rieng provinces.

Further Reading: PM Hun Sen addresses assembly: http://www.phnompenhpost.com/index.php/2012081057933/National-news/pm-hun-sen- addressed-assembly.html

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NEWSLETTER KAS He’s no Castro: Cambodian leader makes his personal longest speech, 5 hours, 20 minutes: CAMBODIA OFFICE http://www.washingtonpost.com/world/asia_pacific/cambodian-prime-minister-takes-no- 24th ED ITION | AUGUST 2012 breaks-or-questions-in-5-hour-speech-to-parliament/2012/08/09/6e38dd10-e20a-11e1- 89f7-76e23a982d06_story.html JANINA KANDT Cambodia’s Hun Sen Has a Secret Plan: http://blogs.wsj.com/searealtime/2012/08/10/cambodias-hun-sen-has-a-secret-plan/ www.kas.de www.kas.de/kambodscha ANTI-CORRUPTION UNIT: STRICTER SANCTIONS FOR BRIBES During a conference organized by the Cambo- dian Federation of Employers and Business As- sociations (CAMFEBA) on the 30th of July, Orm Yentieng president of Cambodia’s Anti- Corruption Unit (ACU) stressed the the Units action against corruption. He pointed out that illegal facilitation payments for, for example government services would be sanctioned harsh in future. As corruption is still a big prob- lem in Cambodia, part of the recent work of the Source: Phnom Penh Post8 ACU was to submit information in 1,700 com- munes to government officials to inform them on the consequences of taking bribes.

Further Reading: Payments illegal, says ACU chief: http://www.phnompenhpost.com/index.php/2012073157709/Business/payments-illegal- says-acu-chief.html

SWISS-CAMBODIAN TIES TO BE STRENGTHENED Cambodian exports to Switzerland have risen by 37% in 2011 compared to 2010, according to Switzerland’s honor- ary consul general Pierre Tami. Swiss humanitarian aid during the floods in 2011 was about $50,000 and official development cooperation was about $5 million the same year. In September this year, the Swiss Agency for Devel- Impressum opment and Cooperation will launch an office in Phnom Penh, Tami stated. KONRAD-ADENAUER-STIFTUNG

CAMBODIA OFFICE

Source: GMK9

House No. 4, Street 462 Further Reading: Khan Charmkar Mon Swiss-Cambodian ties increasing: P.O. Box 944 http://www.phnompenhpost.com/index.php/2012080157732/Business/swiss-cambodian- Phnom Penh ties-increasing.html Kambodscha

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