Phnom Penh: The Asian Development Bank, ADB, has approved an $82 million loan to improve 48 kms of roads in Prey Veng and Kandal provinces. The improvement is aimed at boosting economic development along the Greater Mekong Subregion Economic Corridor (GMS).

ADB said the new loan is the second phase of a road network project for strengthening Cambodia's connectivity with Vietnam, improving the development of cross-border facilities between the countries. The new upgrade will use disaster and weather resistant design to help the Ministry of Public Works and Transport manage roads and reduce overloads of vehicles that often damage roads and lead to accidents.

Mohammad Nazrul Islam, an ADB transport expert, said: “Land transport is the main source of transport of goods and people in Cambodia and between the Greater Mekong Subregion. The project will expand access to education, health services as well as other public services among local communities, especially rural areas”.

Cambodia's economy grew at an average annual rate of 7.8% from 1998 to 2019, but contracted by 3.1% in 2020 due to the Covid-19 pandemic. The country's transport sector faces challenges such as inadequate infrastructure and sustainability issues. Most of Cambodia's rural and provincial roads are unpaved and the capacity of national roads is limited. To address these challenges, the Royal Government has developed a national plan to build high-quality, sustainable and climate-resilient infrastructure during the next ten years.

The first phase of the ADB-approved project started in 2017 and covers 147 kms of national roads at Prey Veng, Siem Reap and Svay Rieng provinces that belong to the Southern Greater Mekong Subregion Economic Corridor. At the second phase, the improvement of national roads will aim at cost-effectiveness, sustainability and environmentally-friendly biotechnology, including the protection of dams.