The Asian Development Bank has approved a $763 million investment program, including a $20 million grant from the Asian Development Fund, to expand safe water supply and sanitation in Cambodia while strengthening water security and building more resilient, livable cities. The initiative aims to upgrade essential services and support climate resilience in rapidly growing urban areas.
Through a multitranche financing facility, the Livable, Resilient, and Water-Secure Cities Investment Program will support improvements in 14 cities and 12 districts across the Mekong, Tonle Sap, and coastal regions. About 15% of direct beneficiaries will be from poor households, ensuring inclusivity. ADB notes that the program will help more than 2 million people by enhancing water supply, sanitation, and other urban systems that underpin productivity, competitiveness, and community well-being.
Cambodia has significantly expanded access to basic water and sanitation over the past decade, but major service gaps remain, especially in sewerage, drainage, and solid waste management. These gaps are becoming more urgent as climate risks intensify. More than half the population is vulnerable to climate impacts, and without stronger adaptation measures, annual climate-related losses could rise to $10.6 billion by 2050. The pressure on urban services is expected to increase as the urban population grows from 4.6 million in 2024 to 6.8 million by 2040.
The investment program supports national goals on climate resilience, poverty reduction, and the Sustainable Development Goals. It will expand resilient urban infrastructure, improve service delivery, and enhance institutional capacity to manage water resources and urban services more effectively.
Designed in four tranches with a total estimated cost of $966 million, the program follows a phased approach that aligns with the capacities of executing agencies. This structure allows for flexibility, efficient implementation, and integration of lessons learned, ensuring that each tranche strengthens the impact of the next.
The Asian Development Fund continues to assist the region’s poorest and most vulnerable countries, supporting poverty reduction and job creation. The Asian Development Bank remains a key multilateral institution promoting inclusive, resilient, and sustainable development across Asia and the Pacific through innovative financing, partnerships, and high-quality infrastructure investments.
