World Bank Approves $150M to Boost Cambodia’s Transport Connectivity

WASHINGTON, April 28, 2026 (KPT) — The World Bank has approved $150 million in financing to strengthen Cambodia’s transport and logistics systems, launching the first phase of a $300 million program to improve regional connectivity and spur economic growth, officials said Tuesday.

The funding, provided through the International Development Association, will support the Cambodia Regional Connectivity Improvement Program, aimed at closing persistent gaps in resilient infrastructure and logistics capacity.

Despite recent progress, limited transport links and inefficiencies continue to constrain Cambodia’s trade and regional integration. The new financing will prioritize upgrades to 247 kilometers of the Asian Highway 21 corridor and enhance national logistics management systems.

Officials said the initiative is expected to benefit more than 1.6 million people, reducing transport costs, expanding market access and stimulating private investment in agribusiness, transport services and tourism.

Transport Minister Peng Ponea said the program reflects the government’s commitment to building infrastructure that better serves citizens and businesses.

The AH21 corridor plays a strategic role in connecting Cambodia with Vietnam and linking northeastern provinces to domestic and regional markets. A second phase will extend improvements to another 145 kilometers and expand rural road access.

Carlos Felipe Jaramillo, World Bank Vice President for East Asia and Pacific, said the initiative will help catalyze private investment and support inclusive growth by improving connectivity and trade systems.

Officials added the program is expected to enhance Cambodia’s competitiveness, facilitate cross‑border trade and create quality jobs across multiple sectors.