ADB Approves $763 Million Investment for Water Security and Urban Resilience in Cambodia
The Asian Development Bank (ADB) announced on 1 December that it has approved a USD 763 million investment programme, including a USD 20 million grant from the Asian Development Fund (ADF), to help Cambodia expand access to safe water supply and sanitation, strengthen water security, and enhance the resilience and liveability of its cities.
According to the bank’s statement, the investment forms part of the ADB’s Livable, Resilient, and Water-Secure Cities Investment Programme, which will utilise a multi-tranche financing facility to improve basic urban services in 14 cities and 12 districts across the Mekong, Tonle Sap, and coastal regions. The programme will also boost inclusive coverage of essential services, with around 15 per cent of direct beneficiaries expected to come from poor households.
“This investment programme will help Cambodia build inclusive, climate-resilient urban services that support not only liveability but also productivity and competitiveness,” said ADB Country Director for Cambodia, Yasmin Siddiqi. “By improving water supply, sanitation, and other urban services, we aim to directly benefit more than two million people and ensure that even the most vulnerable communities are not left behind.”
Cambodia has made notable progress in recent years, with access to basic water and sanitation rising to nearly 83 per cent each in 2024, up from 73 per cent and 54 per cent respectively in 2015. However, critical gaps remain, particularly in sewerage, drainage, and solid waste management—services that require major upgrades to keep pace with growing demand and increasing climate pressures.
More than half of Cambodia’s population is exposed to climate-related risks, the bank noted. Without effective adaptation measures, including improved drainage systems, annual climate-related losses could reach USD 10.6 billion by 2050, potentially reducing gross domestic product by up to 10 per cent. Urban areas are considered especially vulnerable, with the urban population projected to grow by 47.8 per cent, from 4.6 million in 2024 to 6.8 million (35 per cent of the national population) by 2040.
The investment programme aligns with the Royal Government of Cambodia’s goals for urban resilience, poverty reduction, and the achievement of the Sustainable Development Goals. It will support priority short- and long-term investments to expand and sustain resilient infrastructure and services, strengthen water security, and enhance institutional capacity and service delivery.
Structured into four tranches with an overall estimated cost of USD 966 million, the programme adopts a phased implementation approach to match the capacity of executing and implementing agencies. Each tranche will build on the previous one, allowing flexibility, efficient management, and integration of lessons learned to reinforce long-term sustainability.
The ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021–2024, the fund helped 384,000 people move out of poverty and generated around 500,000 jobs, the statement added.