CAMBODIA TRANSPORT CONNECTIVITY RECEIVES MCDF EARLY PROJECT PREPARATION SUPPORT UNDER AIIB-ASEAN PROGRAM

Early project preparation (pre-concept paper) support for Cambodia: Project to Improve Transport Connectivity was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee (GC) during its meeting in Riyadh, Saudi Arabia on 17 December.

The project aims to foster high-quality road investment in Cambodia critical to regional supply chain growth and sustainable development, in line with the 2025 Association of Southeast Asian Nations (ASEAN) Connectivity Master Plan.

The pre-concept paper support will be implemented under the Asian Infrastructure Investment Bank’s (AIIB) Joint 3-Year Program with ASEAN Supporting Infrastructure Connectivity in the ASEAN Region. The GC approved a USD2.69 million grant for the program in October 2022, including a provision for six early project preparation (pre-concept paper) support totaling USD900,000 (up to USD150,000 each).

The MCDF pre-concept support, with the total cost of USD157,500, is the second approved grant under this provision.

The technical assistance will lay the groundwork for investment proposals to sustainably upgrade direct road links among four provinces in northeastern Cambodia – Kratie, Mondul Kiri, Ratanak Kiri, and Steung Treng – and better connect these provinces with the rest of the country and neighboring ASEAN countries.

Improving Cambodia’s transport connectivity will save travel time and facilitate the development of the tourism, agricultural, manufacturing, and logistics sectors and job creation. It will also help boost health services access and overall living standards in local communities.

MCDF’s support for the envisaged AIIB project will encompass the identification of existing road capacity, safety, and connectivity gaps and selection of priority roads for potential investment, taking into account social, environmental, climate, economic, and technical criterion.

MCDF support will also cover work to produce mitigation strategies for ensuring the resilience and sustainability of planned road network enhancements.