The development of public infrastructure ­– including transport, energy, water, communications and sanitation – plays a crucial role in stimulating resilient, inclusive and sustainable economic growth. To continue current levels of growth, Cambodia is estimated to require infrastructure investments of US$28–30 billion between 2016 and 2040.

Private sector investment can help bridge this gap and will become more important as Cambodia moves to upper middle-income status. The Royal Government of Cambodia is encouraging this through a strong regulatory framework (the 2021 Law on Investment and the 2021 Law on Public–Private Partnerships).

CAPRED focuses on strengthening the private sector’s role in piped water, variable renewable energy and energy efficiency investment. CAPRED will also explore other infrastructure financing, such as deal flow, public–private partnerships and green infrastructure bonds.

Our approach

• Learn and collect market intelligence on infrastructure development
• Develop markets in energy efficiency and modern technologies
• Ensure greater inclusivity of infrastructure investments
• Be climate-informed and design infrastructure to be more climate resilient
• Complement and collaborate with strategic partners

Clean, affordable piped water

Piped, treated water is the gold standard for sustainable access to clean water. Immediate in-home access is especially beneficial for women, people living below the poverty line, and people with disability. While urban coverage is 70%, only 47% of the total population can access piped water (2020). An estimated investment of at least US$264 million is needed to cover the remaining villages.

Australia’s former infrastructure program, 3i: Investing in Infrastructure, implemented 80 viability gap financing investments for water projects in Cambodia. This supplied water to more than 253,000 households. Viability gap financing mobilised private sector investments of approximately US$16 million (or 55% of total investment costs).

Without viability gap financing, these households would not have access to clean, piped water. Monthly water consumption has since doubled from 5 to 12 cubic metres, particularly among households that previously accessed water through truck delivery.

CAPRED is working on other financing options such as the Water Development Fund. We are also helping the Royal Government of Cambodia on regulatory, monitoring and enforcement capacity; testing new business models; providing technical support to private water operators; and working to encourage more youth participation in the sector.