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Cambodia plans US$280 million infrastructure upgrade across four cities
Proposed financing would expand wastewater treatment, drainage and flood protection across four Cambodian cities, supporting urban development beyond Phnom Penh, with preparatory design already commissioned and the main investment awaiting approval
Four Cambodian cities could receive a US$280 million infrastructure programme focused on wastewater, drainage and flood protection. A project summary published by the Asian Infrastructure Investment Bank (AIIB) on 29 October proposes US$230 million from the bank, alongside US$20 million from the Abu Dhabi Fund for Development and US$30 million from Cambodia’s government.
The Urban Infrastructure Development Project covers Kampong Chhnang, Kampong Cham, Doun Kaev and Prey Veng. Cambodia’s Ministry of Public Works and Transport would implement the programme, including sewage treatment facilities, sewer networks, household and business connections, stormwater drainage and flood-control roads. Abu Dhabi’s proposed contribution would support the Kampong Cham component. The bank also proposes project-management support and training for national, provincial and local authorities, placing administrative capacity alongside physical construction within the planned investment.
Flood protection and sanitation are being treated as prerequisites for urban growth beyond Phnom Penh.
Project location map showing Kampong Chhnang, Kampong Cham, Doun Kaev and Prey Veng, the four cities covered by the proposed Urban Infrastructure Development Project | Source credit: Cambodia Ministry of Public Works and Transport, C-UIDP Environmental and Social Management Planning Framework, Figure 1; published by AIIB.
AIIB identifies a widening gap between urban growth and municipal services, compounded by seasonal flooding and climate change. Financing remains under preparation, with approval provisionally expected on 3 December 2026.
Preparation is already funded through a separate US$4 million AIIB grant approved in 2024. A published contract award identifies Kunhwa Engineering & Consulting, in joint venture with Yooshin Engineering Corporation and with ES International Consultants as subconsultant, as the team appointed for feasibility studies and detailed engineering. The October disclosure advances a programme whose preparatory design commission has already been awarded.
The environmental and social documents expose the practical challenges of delivery. Pipe networks and flood-control works could affect street traders, farmers and other livelihoods, while riverbank interventions require assessment of habitats and flood behaviour. Preliminary studies anticipate no physical relocation, but economic displacement and access during construction remain issues to address.
The published safeguards reveal a design brief shaped by land, livelihoods and the workings of existing streets.
For infrastructure, landscape and environmental specialists, the next signals are financing approval and subsequent procurement notices. The programme offers a way to track urban development beyond the capital through the infrastructure that enables growth, with future work shaped by local partnerships and the needs of existing communities.
Ulteriori informazioni
AIIB – project page and supporting documents
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