The Asian Development Bank ( ADB ) has approved a US$763 million investment programme to help Cambodia expand access to safe water supply and sanitation, strengthen water security, and enhance urban resilience and livability.

According to a statement released on December 1, the programme is structured into four tranches with an overall estimated cost of US$966 million and a phased approach to match the capacity of executing and implementing agencies.

Each tranche will build on the previous one, reinforcing the programme’s overall impact and sustainability, the bank says.

The facility aims to improve basic services in 14 cities and 12 districts across the Mekong, Tonle Sap, and coastal regions.

Yasmin Siddiqi, who took office as ADB country director for Cambodia in November, says the programme will help build “inclusive, climate-resilient urban services that support not only livability but also productivity and competitiveness.

“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,” she says.

Significant upgrades needed

Cambodia's access to basic water rose from 73% to 83% in the 10 years to 2024 while access to sanitation jumped from 54% to reach the same level over the same period. However, the bank says “critical gaps” remain.

“Services such as sewerage, drainage, and solid waste management require significant upgrades to meet growing demand and address challenges from extreme weather events,” the ADB says.

With more than half of Cambodians exposed to climate risks, the absence of effective adaptation, including better drainage, the ADB reckons climate-related losses could reach US$10.6 billion a year by 2050, eroding gross domestic product by as much as 10%.

The country’s urban population is projected to grow from 4.6 million last year to 6.8 million by 2040, or 35% of the national population. Cities are seen as particularly vulnerable.

The ADB says poor households are expected to account for 15% of the direct beneficiaries of the programme, which includes a grant of US$20 million from its Asian Development Fund.