Phnom Penh, March 19, 2024 – The World Bank has sanctioned a US$35 million credit facility to fortify roads against climate change impacts in Kratie, Kampong Cham, and Thbong Khmum provinces of Cambodia. This funding, confirmed in a recent announcement, is aimed at bolstering the Cambodia Road Connectivity Improvement Project (RCIP).
The RCIP endeavors to enhance access to markets, health services, and educational institutions through climate-resilient road infrastructure in these three strategic provinces, home to over 2 million inhabitants, 80% of whom reside in rural locales.
Targeted for investment by the World Bank’s Country Climate and Development Report for Cambodia, these provinces are notably vulnerable to climate-related risks. They also suffer from inadequate pavement coverage and inefficient floodwater management systems. The susceptibility of these areas to climate change jeopardizes access to essential services, thereby compounding the challenges faced by the local populace.
In addition to addressing road connectivity, the project aims to mitigate transportation and logistics costs for agricultural produce, a vital sector for the provinces involved.
This new wave of financing is allocated to counter unforeseen project expenditures, which have surged due to inflation and the rising costs of critical materials such as fuel and bitumen over the past three years. Moreover, the need for enhanced climate resilience measures, as identified through comprehensive surveys and engineering assessments, has escalated the overall financial requirements.
To date, rehabilitation efforts have commenced on 130 kilometers of key national and provincial routes, with 142 kilometers of rural roads also seeing significant improvements.
Maryam Salim, the World Bank Country Manager for Cambodia, emphasized the project's significance, highlighting the challenges faced by rural communities, especially during the monsoon season. "Improved road conditions not only facilitate better access to healthcare and educational facilities but also play a critical role in emergency care for expectant mothers, reducing logistical costs and ensuring smoother transportation of goods to markets," Salim stated.
Furthermore, the initiative supports the Ministry of Public Works and Transport and the Ministry of Rural Development in key institutional developments. These include crafting a resilient rural road financing strategy, enhancing road safety measures, implementing gender mainstreaming action plans, and adopting performance-based contracts for road improvement and maintenance, aiming at lasting infrastructure resilience.
