ADB's Work in Cambodia

Cambodia’s economy rebounded to 5.2% in 2022 with the gradual recovery of the services sector, after the contraction of 3% in 2020—the first in decades—due to the coronavirus disease (COVID-19) pandemic. Given Cambodia’s reliance on imported fuel, increases in global fuel and fertilizer prices have resulted in a historically high inflation rate of 5% in 2022.

Cambodia’s economic growth averaged over 7% per annum in the decade before the pandemic, making Cambodia one of the fastest-growing economies in the region. This robust growth was underpinned by macroeconomic stability, openness to trade and foreign direct investment, and structural transformation led by export-oriented manufacturing such as garments, footwear, and travel goods, as well as other manufactured products.

The Asian Development Bank (ADB) is one of the country’s largest sources of official development assistance, with average annual lending of $368.3 million in 2018–2022. The bank’s support is aligned with Cambodia’s National Strategic Development Plan, 2019–2023 and Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal, 2021–2023.

To date, ADB has committed 331 public sector loans, grants, and technical assistance totaling $4.6 billion to Cambodia. Cumulative loan and grant disbursements to Cambodia amount to $3.09 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s ongoing sovereign portfolio in Cambodia includes 38 loans and 9 grants worth $2.01 billion.

ADB assisted the Government of Cambodia in its immediate and medium-term response to the pandemic. In 2022, ADB committed $373 million in lending to support Cambodia’s efforts to strengthen its healthcare system, including providing better access to affordable vaccines and wider healthcare coverage for migrant workers; increase focus on science, technology, engineering and mathematics in education; improve productivity and climate resilience in marine fisheries and livestock; accelerate sustainable energy transition; and boost Cambodia’s international competitiveness.

ADB also provided a total of $52.25 million in grants, including $12.7 million in cofinancing, to support Cambodia’s commitments to the Sustainable Development Goals, accelerate the clean energy transition, and promote gender equality. In addition, ADB approved over $3.1 million in technical assistance to support policy reforms, capacity development, knowledge work, project preparation, and project implementation in 2022.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Cambodia as of 31 December 2022 was $82.22 million representing 0.64% of ADB’s total private sector portfolio.

Operational challenges. ADB awarded more than $220 million worth of contracts to national and international firms in 2022 and disbursed more than $250 million in the delivery of project loans, grants, and technical assistance. The contracts were awarded through an open competitive bidding process. ADB is working closely with the government and other development partners to improve the performance of project implementation to deliver benefits to Cambodians more efficiently and effectively. In doing so, ADB strengthens the government’s capacity in project implementation, environmental and social safeguards, and climate change mitigation and adaptation in all publicly financed projects.

Students working in a science lab at Koh Thom Secondary School in Kandal Province. The lab was part of a resource building supported by ADB under the Upper Secondary Education Sector Development Program (USESDP) to integrate the 21st century skills into Cambodia’s upper education curriculum. Photo: Soleil Mom/ADB

Knowledge Work

ADB produced several publications and organized knowledge events in collaboration with government institutions and development partners to meet knowledge needs in Cambodia. The Green Bond Market Survey for Cambodia: Insights on the Perspectives of Institutional Investors and Underwriters provides an overview of institutional investors’ interest in green bonds issued in the country and assesses the perspectives of local arrangers and underwriters on their clients’ interest in green bond issuances. STEM and Education Technology in Bangladesh, Cambodia, the Kyrgyz Republic, and Uzbekistan: A Synthesis Report analyzes the state of science, technology, engineering, and mathematics education (STEM) and education technology (EdTech) in the general education subsector of Cambodia and other developing member countries. ADB also copublished with the government a report on Population Distribution and Urbanization.

ADB jointly organized with the Ministry of Mines and Energy a forum to share best practices from Cambodia and the Association of Southeast Asian Nations (ASEAN) in support of energy transition. A symposium organized in collaboration with the Ministry of Justice will help the government establish separate specialized commercial courts in Cambodia. ADB partnered with the Cambodia Development Resource Institute, a leading think tank, to facilitate easier access to ADB research and publications for stakeholders.

  ADB Projects in Cambodia Project data sheets for loans, grants, TAs