ADB Backs Cambodia’s Urban Future with $763 Million Investment

• 4 December 2025
• Local News
• 1027 Views

The Asian Development Bank (ADB) has approved a $763 million investment program, which includes a $20 million grant from the Asian Development Fund (ADF), to support Cambodia in strengthening its water security and enhancing the resilience and livability of its cities. This announcement was made in a press release by the bank on December 1, 2025.

The Living, Resilient, and Water-Secure Cities Investment Program is structured as a phased financing facility. It aims to improve water services in 14 cities and 12 districts located across the Mekong River, Tonle Sap, and coastal regions. The program prioritizes extending access to water and urban services, with approximately 15% of the total direct beneficiaries expected to be from poor households.

Ms. Yasmin Siddiqi, ADB Country Director for Cambodia, stated that this investment will help the country build climate-resilient and inclusive urban services. She emphasized that this will not only support livability but also boost productivity and competitiveness. Through improvements in water supply, sanitation, and other urban services, the bank aims to bring direct benefits to over two million people, ensuring that even the most vulnerable communities are not left behind.

The ADB highlights that more than half of Cambodia’s population is currently vulnerable to flooding. Without effective adaptation measures, such as stormwater drainage systems, the annual climate-induced losses could reach $10.6 billion by 2050. This level of loss could potentially reduce the gross domestic product by up to 10%.

Urban areas are particularly susceptible to these challenges, especially as the urban population is projected to increase significantly. It is expected to grow by about 47.8%, from 4.6 million in 2024 to 6.8 million (35% of the total population) by 2040. Consequently, this investment program aligns with the Royal Government of Cambodia’s goals of poverty reduction and sustainable development.

The Asian Development Bank also recently approved funding for the renewable energy sector and a fund to help Cambodia improve financial stability and digital infrastructure. (Read more) and (Read more)

• Investment and Funding
• loan
• ADB
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