The ADB Approves a $763 Million Program for Water and Climate Resilience in Cambodia

The Asian Development Bank (ADB) has approved an ambitious $763 million investment program to strengthen water security and climate resilience in Cambodian cities amid rapid urbanization and increasing climate risks.

Titled "Livable, Resilient and Water-Secure Cities Investment Program," it includes a $20 million grant from the Asian Development Fund and targets improved access to drinking water, sanitation, and urban resource management in 14 cities and 12 districts across the Mekong, Tonle Sap, and coastal areas. Nearly 15% of direct beneficiaries will come from low-income households, ensuring social inclusivity.​

Strategic Lever for Sustainable Urban Growth

Over the past decade, Cambodia has made notable progress in water and sanitation services, with national coverage reaching nearly 83% in 2024, up from 73% and 54% in 2015. However, sewerage, drainage, and solid waste management infrastructure remains underdeveloped, leaving many cities vulnerable to flooding and extreme climate effects. The ADB notes that over half of Cambodia's population is vulnerable to climate risks, and without adaptation measures like resilient drainage and urban planning, annual economic losses could reach $10.6 billion by 2050, potentially reducing GDP by up to 10%.​

Phased and Inclusive Program

With a total estimated cost of $966 million, the program will be implemented in four tranches to build institutional capacity, optimize urban project management, and incorporate lessons learned for long-term sustainability. It aligns with Cambodia's national strategy for urban resilience, poverty reduction, and basic infrastructure modernization, representing a key partnership between the ADB and the Cambodian government. Yasmin Siddiqi, ADB Country Director for Cambodia, stated that the initiative will build inclusive, climate-resilient urban services, supporting quality of life, productivity, and urban competitiveness, with over two million people benefiting directly, prioritizing the most vulnerable.​

Long-Term Contribution to Regional Prosperity

Since 2021, the Asian Development Fund (ADF), which supports the poorest countries in Asia and the Pacific, has helped 384,000 people escape poverty and created over 500,000 jobs. This program extends that momentum, positioning Cambodia as a leader in transitioning to livable, competitive, and adaptive cities amid 21st-century climate challenges, with urban population expected to grow by nearly 48% by 2040.​