The Asian Development Bank’s (ADB) has approved a $70 million loan to provide a more efficient, safe, and disaster-resilient transport sector in Cambodia, particularly by improving national roads in the provinces of Prey Veng, Siem Reap and Svay Rieng along the Greater Mekong Subregion (GMS) Southern Economic Corridor.
Since roads are a dominant mode of transport in Cambodia, apart from enhancing existing roads in the three focus areas, the project will also help improve the government’s capacity in road asset management.
The government will repair and rehabilitate over 15,400 km of national and provincial roads managed by the Ministry of Public Works and Transport (MPWT) to enhance connectivity, particularly with its neighbouring countries within the GMS.
The project involves pilot testing a hybrid performance-based contract for undertaking road works, which involves construction and routine maintenance, increasing private sector participation in road maintenance. It is designed to increase the efficiency and effectiveness of road asset management in Cambodia by expanding the scope of contractors from project executors to road managers.