Dirk Niebel, German Minister for Economic Cooperation and Development, and Keat Chhon, Cambodian Minister of Economy and Finance, have signed an €19 million grant agreement, a German embassy statement said on Wednesday.  
Dirk Niebel arrived in Phnom Penh for his first visit to Asia yesterday. The two legged trip includes a visit to neighboring Vietnam.
During his three days in Cambodia, Niebel will discuss the political and social economic development with senior government officials, the statement said. In his first meeting with Keat Chhon, Niebel underlined that Germany remains a reliable partner for Cambodia and will continue to support efforts to achieve the millennium development goals (MDGS).
German development cooperation will be geared at alleviating the consequences of the global economic crisis which are particularly affecting the poor segments of the population, the statement said .  
Minister Niebel, together with German Ambassador Frank M. Mann and Keat Chhon signed an agreement on financial cooperation 2009, with a grant of €19 million will be made available and used for projects concerning the health sector, regional economic development and rural infrastructure. At the signing ceremony, Niebel stressed the importance of the German assistances in both sectors for reaching the MDGs. He pointed out that good governance, respect of human rights and rule of law and rights of opposition parties are essential for the cooperation between Cambodia and Germany. “These are basic requirements for the sustainable development and an effective development cooperation. Therefore, Germany shall continue to cooperate with our Cambodian partners to improve the governance track record,” he said. He  also highlighted that continued commitment to implement reforms in the land sector is essential for the sustainable development of Cambodia.
The agreement on financial cooperation contains an additional allocation €1.6 million allocation for the to further improve the quality and accessibility of public and private heath services for the poor population in five provinces. Long term goals are the establishment of a social heath insurance scheme, including fee exemptions, health equity funding, community health insurance and social health insurance.