PHNOM PENH — Cambodia is set for one of its most ambitious water and sanitation upgrades yet, after the Asian Development Bank signed off on a sweeping $763 million program aimed at closing long-standing gaps in urban services and delivering safe, reliable water to more than two million people.

Cambodia’s new investment package forms part of the ADB’s Livable, Resilient, and Water-Secure Cities Program and includes a $20 million grant from the Asian Development Fund. The support will help expand clean water supply and sanitation systems across 14 cities and 12 districts in the Mekong basin, the Tonle Sap region, and coastal provinces.

According to the ADB, the funding will prioritize inclusive service coverage, with around 15 percent of the direct beneficiaries coming from low-income households. The broader aim is to raise the standard of urban infrastructure while ensuring poorer communities are not left behind.

ADB Country Director for Cambodia Yasmin Siddiqi said the package is designed to bolster the country’s overall resilience and competitiveness amid rapid urban growth and intensifying climate pressures.

“By strengthening water supply, sanitation, and other essential urban services, we want to make sure that more than two million people see real, tangible improvements — especially those in the most vulnerable areas,” she said.

Cambodia has made steady progress in expanding access to basic water and sanitation, climbing to roughly 83 percent coverage in 2024, up from 73 percent and 54 percent respectively in 2015. Even so, key systems such as sewerage, drainage, and waste management still lag behind and require large-scale investment to cope with rising demand and more frequent extreme weather events.

More than half of the population already faces significant climate-related risks, the ADB noted, warning that annual economic losses could reach $10.6 billion by 2050 and potentially cut GDP by up to 10 percent. Urban areas remain particularly vulnerable as the city population is projected to surge by nearly 48 percent — from 4.6 million in 2024 to 6.8 million by 2040 — ultimately representing more than one-third of the national population.

The new investment program aligns with Cambodia’s broader goals on urban resilience, poverty reduction, and progress toward the Sustainable Development Goals. With an estimated total cost of $966 million, the initiative will be delivered in four tranches, allowing phased implementation, better management, and stronger institutional capacity. Each phase is designed to build on earlier results and integrate lessons learned, ensuring the program delivers lasting impact.

This year, the ADB also cleared $93.6 million in additional loans and grants to improve water, sanitation, and hygiene in rural communities. That support is expected to benefit 88,000 households in 400 villages across nine provinces.

The government, meanwhile, has accelerated its own sanitation targets. Prime Minister Hun Manet has set the goal of achieving full rural sanitation and hygiene access by 2030. Rural sanitation coverage rose from 90 percent in 2024 to 95 percent in 2025 and is on track to reach universal access by the end of the decade.

Cambodia also marked a significant milestone in October, announcing open-defecation-free status across all 25 provinces and cities — covering more than 14,500 villages, 1,652 communes, and 163 districts — a first in the country’s public health history.