Developing road infrastructure to support balanced and inclusive economic growth in rural areas

In Cambodia, 70% of the population lives in rural areas, and the development of road infrastructure is a priority for supporting the country's development. Roads contribute significantly to economic growth through job creation and the emergence of the businesses they bring. They also help reduce social isolation by improving access to basic social services and lowering the cost of consumer goods.

Launched in 2020, the project provides for the rehabilitation of 530 kilometres of rural roads in seven provinces: Preah Vihear, Siem Reap, Battambang, Kampong Thom, Banteay Meanchey, Oddar Meanchey and Prey Veng. Complementary infrastructure is also being built to support local development in the sectors of clean water and sanitation, drainage access for vulnerable households, and UXO clearance. In addition, the capacities of public institutions will be strengthened and the beneficiary communities supported to ensure the sound management of the infrastructure over time.

The project also places emphasis on the fight against climate change, targeting both the creation of resilient infrastructure and the opening up of the most vulnerable rural areas.

The Project amounts to € 120.83 million, and is composed of:

• AFD financing: €75,000,000, through a sovereign loan.

• Partner financing: KfW €30,000,000, BMZ €7,100,000 and the European Union €8,730,000.

• The beneficiary is the Royal Government of Cambodia.

These improvements will benefit 300 villages, comprising approximately 200,000 people. In synergy with other agricultural development projects supported by AFD, the project will reduce transport costs and times, support the economic development of the targeted areas, create jobs, enable private-sector investment to take off and improve access to market and to social and administrative services, such as school and health centers.

Furthermore, the complementary infrastructure should reinforce and extend these effects, for example by improving clean water networks or supporting social development. Farmers should thus benefit from greater climate resilience and stronger livelihood.