Cambodia

In a country where urban growth is very high and population dynamics mean there is a need to create large numbers of jobs, internal stability and social harmony require the restoration of a balance between all the country's territories. This involves public investment to provide access to basic services for all the population, whilst concentrating efforts on disadvantaged social groups (rural population, women).

AFD is supporting investments in infrastructure and economic projects (electricity, water, sanitation, irrigation systems) which concern both urban centres and rural areas. Another challenge is to reinforce physical connectivity (transport infrastructure, markets, training centres, etc.). 

The energy sector is a key sector of the Cambodian economy: the high cost of electricity is still a discriminating factor for foreign investors. Despite considerable progress in terms of rural electrification, the infrastructure deficit results in significant load shedding, particularly during the 2019 dry season, leading to repeated power cuts in the capital, Phnom Penh.

In order to support the ambitious national climate policy reaffirmed during the NDC update at the end of 2020, AFD is supporting various projects ranging from the development and modernization of the Electricité Du Cambodge (EDC) electricity network to the modelling of the energy sector by 2050 in order to inform future public policies in the sector.

France-Cambodia partnerships in the water and sanitation sector are long-standing and have enabled French expertise in these fields to be developed. AFD has had a partnership with the Phnom Penh Water Supply Authority (PPWSA) for almost 20 years and has financed several drinking water treatment plants (Chrouy Chang Var, Chamcar Morn, Niroth) and network extensions. The investments to be made by PPWSA (defined in the 2016-2030 master plan) remain considerable in order to meet a doubling of demand by 2030 to 1,000,000 m3/d. The first phase of the Bakheng water treatment plant project is co-financed by AFD, the EIB and the EU and the second phase by AFD alone (under implementation for 2019-2024). In the provinces, AFD is also supporting the Siem Reap Water Supply Authority's investment plan and is co-financing a drinking water and sanitation project in Cambodia's secondary cities (Battambang, Kampong Cham and Siem Reap) with the ADB.

AFD is also actively involved in facilitating access to basic services in rural areas where 70% of the Cambodian population lives. The development of road infrastructure (rural tracks) is a priority and is generally accompanied by the construction of complementary infrastructure for local development in the drinking water and sanitation, agriculture, health and education sectors.

Cambodia is known to be a country where water is an abundant resource. However, this resource is now threatened by climate change (droughts and floods) and adaptation requires efficient management of all the country's water resources, both underground and surface.

To meet this major challenge, AFD is supporting public investments in water resource management through:

• a program approach to support the national irrigation policy - AFD's historical intervention sector in Cambodia - in its infrastructure components (rehabilitation of irrigated perimeters and preks) and social water management by including users in the management and maintenance of networks;
• a national project to develop the aquaculture sector, as fish products are the main source of animal protein consumed in Cambodia;

• AFD is also involved in the resilience of secondary cities (Battambang, Kratie, Chlong, Kampot) to the effects of climate change, which notably requires investments to protect riverbanks from flooding and to drain rainwater.

Because of its unique recent history, Cambodia is now forced to invest massively and urgently in its human capital, targeting the younger generations. AFD is supporting the government in its social inclusion priorities, which include:

• vocational training to enable the workforce to respond appropriately to the needs of the labor market and meet the demographic challenge;
• the implementation of the national strategy for social protection with the objective of setting up a compulsory health and pension coverage mechanism for the formal and informal sectors;
• support for the financial inclusion sector, in order to accompany it towards greater inclusion and accountability, through the dissemination of responsible practices.

AFD is also supporting the government's strategy for integrated rural development by promoting agro-ecological and productive transitions, supporting balanced territorial development, and supporting public policies and capacity building for institutional stakeholders. AFD is financing actions such as: 

• Strengthening the rice sector via irrigation projects that aim to support the intensification of rice production;
• Promoting higher added value in local agricultural sectors, for example by supporting the development of geographical indications (Kampot pepper, Kampong Speu palm sugar);
• Supporting the agro-ecological transition and promoting practices that respect the environment and ecosystems.

Finally, AFD in Cambodia supports the network of Civil Society Organizations (CSOs) and currently provides financial support to 24 projects of 16 French NGOs, 9 of which are implemented solely in Cambodia and 15 of which are multi-country programs that include an activity component in Cambodia. All of these projects are implemented in partnership with Cambodian CSOs, for a total commitment of €6.3M. The sectors most represented are agriculture and food security, education, vocational training and youth integration, governance, human rights and social sectors.