Cambodia launches governance for climate-resilient water finance programme

Phnom Penh, Jan 15, 2026 (KPT) – Cambodia’s Ministry of Industry, Science, Technology and Innovation (MISTI), UNICEF and the United Nations Capital Development Fund (UNCDF) have agreed on governance arrangements for a new blended-finance facility to boost climate-resilient water infrastructure.

The Water Infrastructure & Smart Energy in Cambodia (WISE) Joint Programme is the country’s first revolving blended-finance mechanism for the water supply sector.

It aims to accelerate progress towards Cambodia’s Sustainable Development Goals by mobilising private investment alongside concessional resources and technical support.

“This is the first-ever revolving blended finance mechanism for the water supply sector,” UNICEF Representative Will Parks said, noting the programme had been years in the making.

Private Water Operators (PWOs) currently serve more than 3.5 million people but face high capital costs, short loan tenors and limited technical capacity.

The WISE facility seeks to ease these constraints by combining commercial financing with concessional capital, offering technical assistance, and expanding the use of credit guarantees through the Credit Guarantee Corporation of Cambodia.

MISTI Minister Hem Vanndy said the steering committee would ensure alignment with ministry priorities and coordination with stakeholders, while keeping implementation “light and agile.”

“From the beginning, we wanted this programme to be a win-win for the government, the private sector, and especially the people,” he said.

The programme plans to support at least 30 PWOs in investing in renewable-powered infrastructure and digital water management systems, under a national steering committee aligned with Cambodia’s broader development plans.