Phnom Penh – The Asian Development Bank (ADB) has approved a USD763 million investment program, including a USD20 million Asian Development Fund (ADF) grant, to expand access to safe water supply and sanitation, strengthen water security, and enhance climate resilience across Cambodia’s rapidly growing urban areas.
The Livable, Resilient, and Water-Secure Cities Investment Program will use a multitranche financing facility to improve basic urban services in 14 cities and 12 districts across the Mekong, Tonle Sap and coastal regions. Around 15 per cent of direct beneficiaries will be from poor and vulnerable households.
ADB Country Director for Cambodia Yasmin Siddiqi said the investment will help Cambodia build inclusive and climate-resilient urban systems. “By improving water supply, sanitation and other urban services, we aim to directly benefit more than 2 million people and ensure that even the most vulnerable communities are not left behind,” she noted.
Cambodia has seen strong progress over the past decade, with access to basic water and sanitation reaching almost 83 per cent in 2024, up from 73 per cent and 54 per cent respectively in 2015. However, key services such as sewerage, drainage and solid waste management continue to require substantial upgrades to meet rising demand and adapt to climate pressures.
More than half of the population is exposed to climate-related risks, and without effective adaptation measures—including strengthened drainage systems—annual losses could reach USD10.6 billion by 2050, potentially reducing national GDP by up to 10 per cent. The urgency is reinforced by demographic trends, with Cambodia’s urban population projected to expand from 4.6 million in 2024 to 6.8 million by 2040, representing 35 per cent of the national population.
The program supports national goals for urban resilience, poverty reduction and progress toward the Sustainable Development Goals. It will finance priority short- and long-term investments to expand resilient infrastructure, promote water security, and strengthen institutional capacity.
Structured into four tranches with a total estimated cost of USD966 million, the program follows a phased approach tailored to the capacity of implementing agencies. Each tranche will build on the results of the previous one, ensuring effective management, flexibility and continuous institutional strengthening.
The ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. Between 2021 and 2024, the fund enabled 384,000 people to escape poverty and supported the creation of around 500,000 jobs.
Founded in 1966 and owned by 69 members, ADB remains a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific.
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