Wednesday, November 4, 2009

Better schooling seen necessary for the future of youth, workforce

The Phnom Penh Post
Wednesday, 04 November 2009 15:00, James O'Toole

UN outlook for youth bleak on employment obstacles and economy

YOUNG Cambodians face increasingly daunting prospects for entering the Kingdom’s labour market, the United Nations said in a report released last week.

The report, titled “Situation Analysis of Youth in Cambodia”, was prepared to coincide with Saturday’s UN Day and is being launched at a ceremony this morning at the National Institute of Education. UN resident coordinator Douglas Broderick said that though the report also contains sections on health, education, rights and vulnerability, many of its most urgent recommendations focus on the issue of youth employment.

“This is the biggest issue affecting young people,” he said. “Cambodia has a young and vibrant workforce, but they lack the skills and training to achieve their full potential.”

People ages 10 to 24 currently comprise 34.7 percent of the Cambodian population – more than 300,000 leave school and look for work each year, and youth participation in the labour force is among the highest in the region, according to the report. However, recent economic growth has largely depended on a few key sectors: garments, construction and tourism, and these sectors are ill-equipped to further absorb large numbers of workers.

John McGeoghan, project manager at the Phnom Penh office of the International Organisation for Migration, said that Cambodia must account for the potential social dislocation that occurs when young people migrate from rural to urban areas in search of employment.

“What we are concerned about, perhaps in terms of trafficking, is that there are significant numbers of young people who don’t have a social network,” he said.

The UN analysis also noted this trend, but it emphasised the importance of expanding Cambodia’s labour capabilities in the agricultural sector, as the earning potential for youths entering the labour force is significantly lower in rural areas than it is in Phnom Penh.

Officials from the Ministry of Labour could not be reached for comment. In August, however, Ministry of Labour Director General Heng Sour told the Post that the government is currently sponsoring a job training programme supporting 40,000 people, 30,000 of whom are studying agricultural vocations.

“We are observing whether the economic crisis will continue and whether this training will be enough,” he said, adding that the Ministry of Economy and Finance will consider whether or not to renew this programme at the end of the year.

These sorts of initiatives, Broderick said, are crucial for the Kingdom to meet the challenge or a burgeoning working-age population. He adds, “Establishing programmes and opportunities for young people to develop work-related skills, such as more school-based vocational training, apprenticeships, on-the-job training, and opportunities in civil service … is essential.”

Tuesday, November 3, 2009

Cambodia To Pave Road To Preah Vihear Temple

PHNOM PENH, Nov 3 (Bernama) -- Royal Cambodian Armed Forces ( RCAF) will begin paving the 80 km dirt road from Oddar Meanchey province's Anlong Veng district to Preah Vihear temple before Nov 25, China's Xinhua news agency reported, citing officials from RCAF as saying in a local media.

"We will begin pave the road by the end of the month. The total distance is about 80 km. It may cost about US$10 million and it will be finished by June 2010," Kwann Seam, director of RCAF's engineering department, was quoted by the Cambodia Daily as saying.

He said that his team would begin surveying the road after the Water Festival in Phnom Penh is finished.

By April 2010, RCAF will begin paving another 22 km dirt road, this time to Ta Moan temple from Kork Mon commune in Oddar Meanchey province's Banteay Ampil district, he said.

Seam said that the paving of roads in the area is part of a larger project to pave all northern roads in the country.

"We hope that by 2013, all the roads in the northern area will be paved," he said.

Major General Srey Doek, commander of RCAF Division 3, said that despite ongoing tension between Cambodia and Thailand over Preah Vihear temple, tourists should not worry about safety.

Monday, November 2, 2009

In Cambodia, a Cry for Small-Scale Subsidies

November 2, 2009
By Simon Marks
The New York Times

A $20 solar-powered lamp could benefit millions of rural Cambodian residents, but most still can’t afford it. Subsidies, its makers say, are sorely needed. (Kamworks)

Generous subsidies for businesses and tax incentives for consumers are needed if developing countries like Cambodia are to promote renewable energy alternatives — particularly in rural areas — a conference in Phnom Penh on green energy was told last week.

At the moment, conference participants complained, such incentives are sorely lacking.

“Cambodian investors have low investment capital,” said Rin Seyha, the managing director of SME Renewable Energy, a Cambodian-based renewable energy investment firm. Unlike neighboring Vietnam, there is very little in the way of tax incentives and subsidies on loans for renewable energy companies, he said.

Jeroen Verschelling, the director of Kamworks, a Cambodian-based solar energy company, said consumers who wish to use more environmentally friendly energy sources are often forced to ask for assistance from microfinance institutions that tend to provide loans with extremely high interest rates.

Mr Verschelling complained that large scale coal plant and hydropower projects are able to easily secure financing. For smaller, renewable projects, “it is much harder to do that,” he said.

According to the environmental group Geres, 80 percent of Cambodia’s energy consumption comes from biomass, mostly from burning timber. The United Nations Development Program estimates that just 20 percent of the population has access to the national power grid.

Small, renewable energy developers say this means most energy-sector financing is directed at projects that benefit only a fifth of Cambodia’s residents.

Kamworks has recently launched a basic solar powered light for people in rural areas. The lamp, which retails for about $20, needs direct sunlight during the day and at night runs for about 12 hours on its lowest setting, or about three hours on its highest.

“To pay $20 at once is a huge amount for local people,” said Patrick Kooijman, the marketing director for Kamworks, who added that the lamps really ought to be given away for free. “I think that the private sector getting involved in things like this is the only way it really can work in the long term.”

Meanwhile, Margaret Ryan, an energy consultant for Khmer Solar, which specializes in solar power installation, said that despite government efforts to slash import tariffs on equipment used for renewable energy sources — tariff rates on imports have been reduced from 35 percent to seven percent on items such as solar panels and battery chargers and have been altogether eliminated for items such as wind and hydraulic turbines — the Cambodian consumer is generally unable to afford the costs of installing solar panels.

“Even if labor is very inexpensive, it is still costly,” she said. “Any expense is too much expense.”

In order to reduce prices, Khmer solar is encouraging Cambodians to install the equipment themselves by disseminating simple installation leaflets and employing operators who can troubleshoot for clients with technical issues.

But these efforts are merely a drop in the pond when trying to make any major inroad into Cambodia’s energy sector.

“The next obstacle to overcome will be a workable plan for a subsidy,” Ms. Ryan said. “It would be wonderful if the government subsidizes the poorest to get solar systems. But I doubt it will happen.”