We maintain our positive outlook on the country's infrastructure sector, forecasting it to growby 7.5% y-o-y in 2017 amid steady inflows from China as part of Beijing's One Belt One Road initiative.The government's efforts to maintain a favourable business environment will also help attract foreign directinvestment from other sources.
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We expect the government's continued investment in the road and rail systems to lend support to growthin the transport infrastructure sector. In addition, a steady flow of Chinese investment in Cambodia, aspart of China's broader regional plans, will be positive for the domestic rail sector.
We maintain our expectations for the country's energy infrastructure to remain underdeveloped, despiteongoing government efforts due to domestic and external difficulties. These are therefore likely to resultin the slow development of Cambodia's electricity supply.
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