ADB Approves $50 Million Loan to Support Cambodia’s Public Financial Reform

MANILA, Philippines (Aug. 29, 2025) — The Asian Development Bank has approved a $50 million policy-based loan to support Cambodia’s efforts to strengthen governance and improve public financial management systems, aimed at enhancing equitable and resilient service delivery.

The loan, issued under Subprogram 1 of the Strengthening Governance for Improved Service Delivery Program, builds on ADB’s ongoing support for Cambodia’s Public Financial Management Reform Program, now in its fourth phase. The initiative seeks to improve performance accountability and institutional efficiency in revenue collection and expenditure management, creating fiscal space to expand and improve public services.

ADB said the program also promotes private sector development by enhancing public investment governance, strengthening public–private partnership frameworks and improving procurement transparency.

“This program is a catalyst for transformative change, designed to unlock Cambodia’s economic potential through three channels—efficiency in financial systems, resilient public investments, and stronger performance management,” said Jyotsana Varma, ADB Country Director for Cambodia. “Reforms are expected to generate over $2 billion in additional revenues and $3 billion in efficiency savings by 2028.”

Subprogram 2 will follow, building on the reforms initiated under Subprogram 1. ADB’s programmatic approach is designed to help Cambodia implement policy reforms in a sequenced, coordinated manner aligned with its national reform agenda, ensuring long-term sustainability and institutional integration.