ADB Launches $763M Program to Build Water-Secure and Climate-Resilient Cities in Cambodia

At least 2 million people are expected to benefit directly from the expansion of essential urban services, with about 15% of beneficiaries from low-income households.

The Asian Development Bank (ADB) has approved a $763 million investment program, including a $20 million grant from the Asian Development Fund (ADF), to help Cambodia expand equitable access to clean water and sanitation, strengthen national water security, and improve the resilience and livability of rapidly growing cities.

The initiative—called the Livable, Resilient, and Water-Secure Cities Investment Program—is structured as a multitranche financing facility supporting large-scale upgrades across 14 cities and 12 districts in Cambodia’s Mekong, Tonle Sap, and coastal regions. The program seeks to ensure that water, sanitation, drainage, and waste systems can keep pace with urbanization, climate impacts, and population needs.

At least 2 million people are expected to benefit directly from the expansion of essential urban services, with about 15% of beneficiaries from low-income households. The project also prioritizes inclusion of women, people with disabilities, and informal settlements.

“This investment program will help Cambodia build inclusive, climate-resilient urban services that support not only livability but also productivity and competitiveness,” said ADB Country Director for Cambodia Yasmin Siddiqi. “By improving water supply, sanitation, and other basic services, we aim to ensure that even the most vulnerable communities are not left behind.”

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Progress and Challenges

Cambodia has significantly improved basic service access over the last decade. National access to drinking water and sanitation increased to 83% in 2024—up from 73% and 54% respectively in 2015. However:

• Sewerage networks remain insufficient.

• Drainage systems are outdated or inadequate.

• Solid waste management struggles to meet growing demand.

• Flood risk continues to intensify due to climate change and urban expansion.

More than half of Cambodia’s population faces exposure to climate hazards including flash floods, severe storms, and prolonged droughts. Without effective adaptation, annual climate-related losses may reach $10.6 billion by 2050, reducing GDP by as much as 10%.

Urban growth is accelerating rapidly. Cambodia’s urban population is expected to increase nearly 48%—from 4.6 million in 2024 to 6.8 million by 2040, meaning nearly one-third of the population will live in cities.

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Program Focus and Design

The investment program supports the national urban development agenda and aligns with Cambodia’s commitments under the Sustainable Development Goals, particularly Goals 6 (Clean Water and Sanitation), 11 (Sustainable Cities), and 13 (Climate Action).

Core components include:

• Construction and rehabilitation of water treatment and distribution systems

• Expansion of modern sewerage networks and wastewater treatment

• Improved stormwater drainage to mitigate floods

• Enhanced solid waste collection and management systems

• Smart water monitoring systems for sustainable water resource management

• Training and capacity development for local authorities and public service providers

Climate-resilient design standards will be applied to all infrastructure.

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Financing Structure and Implementation

The total estimated investment across four financing tranches is $966 million. A phased approach ensures:

• Strong coordination with local agencies

• Flexible scaling based on performance and capacity

• Lessons learned from earlier phases incorporated into later ones

• Long-term institutional strengthening and sustainability

Subsequent financing phases may also mobilize private sector participation and climate finance from international partners.

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A Step Toward a More Water-Secure Future

This long-term investment represents a major step toward building cities that are not only more resilient but more equitable—where clean water, sanitation, and essential services are accessible for all Cambodian residents.

By integrating climate adaptation, green urban planning, and inclusive service delivery, the program will support Cambodia’s socioeconomic development goals while safeguarding public health and ensuring cities remain livable in the decades ahead.