MCDF Grant Supports Cambodia Road Connectivity to Facilitate Regional Transport and Trade

A USD1,417,500 grant to support the preparation of a project to enhance road connectivity in Cambodia, facilitating regional transport and trade, was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee during their meeting in Doha, Qatar on 27 September. The project will be implemented by the country’s Ministry of Public Works and Transport (MPWT) and the grant will lay the groundwork for financing by the Asian Infrastructure Investment Bank (AIIB).

The MCDF grant will support preparations for the project which will upgrade a flood-prone section of National Road 78C (NR78C), 9 kilometers from the Cambodia-Lao PDR border, to enable all-weather operations. The section extends between (NR7) to the west, in Stung Treng Province, and parts of NR78 to the east, in Ratanakiri Province, where two border crossings with Lao PDR and two with Viet Nam are planned. The project will also help realize the construction of new bridges, to replace cross-river ferries which currently carry road vehicles in these areas.

A feasibility study for the road project will be financed by the MCDF grant, providing due diligence on technical, financial, and economic issues, environmental and social safeguards, including the protection of indigenous people, gender inclusion, and implementation arrangements. The grant will also fund advance procurement support to MPWT to increase AIIB policy and standards compliance, and help prepare specifications to inform the project’s design.

MCDF’s grant support will help ensure the project qualifies for financing by AIIB and partners and can ultimately deliver improved road safety, reduced travel times, and more efficient passenger traffic and trade flows between less-developed areas of Cambodia and neighboring countries.