An inauguration ceremony of reconstruction of Cambodia' National Road 78 was launched on Thursday in Strung Treng province, about 500 km northeast of capital Phnom Penh.

The road will be built by Shanghai Construction (Group) Company with the concession loan from China plus five percent of the Cambodian government's budget.

Prime Minister Hun Sen presided over the ground-breaking ceremony of the reconstruction of the National Road 78 linking O Porng Moan of Stung Treng province to Rattanakiri's provincial town.

Chinese Ambassador to Cambodia Zhang Jinfeng was also present at the ceremony. Zhang said, "This road will contribute to help transport network in northeastern part of Cambodia."

She said, "It will help to reduce the poverty for people, and reduce the gap between city and rural areas," and "it will also push the social and economic development as quickly as possible."

China and Cambodia will continue to strengthen bilateral cooperation in all fields to serve mutual benefit, and through building infrastructures to push Cambodia's economic growth and social development, she said.

The reconstruction of the 121 km-long road portion will last for 40 months and cost 73.3 million U.S. dollars.

"This road will link the economy from the country's northeastern area to central area," said Hun Sen, adding that "In 2010, we will have 11 road construction projects, of them seven are supported by China." "China has played key role in building infrastructure in Cambodia," he said.

On the occasion, Hun Sen expressed profound thanks to the Chinese government and people for their cooperation and financing, saying it not only helps Cambodia's socio-economic development, but also strengthens the Kingdom's political independence.

The prime minister said the loan from China is aiming at ensuring effective economic development and contributes to help reduce poverty for people and China respected Cambodia's decision in using this loan.

"We could note that China has a good habit of saying less and doing more," the prime minister added.