Cambodia’s infrastructure master plan to propel economic growth
Cambodia’s infrastructure master plan to propel economic growth
Cambodia dreams big. A look at the Royal Government’s infrastructure master plan spanning till 2033 gives a fair measure of what the Kingdom will look like in 2034. The nation will be dotted with new expressways, airports, skyscrapers, sea and river transport, well-planned roads, metros, adequate rail connections, developed ports and many more. But the new look comes at a whopping cost of $36.6 billion. The Royal Government is determined to go ahead, no matter what, with the grand plans to accomplish its great vision. Khmer Times wades through pages of the Comprehensive Intermodal Transport and Logistics System (CITLS) 2023-2033 master plan that will bring about a qualitative shift in the lives of ordinary citizens
Transforming Cambodia into a regional transport and logistics hub by 2033 is fundamentally associated with the Royal Government’s broader vision of enhancing connectivity and vastly reducing the existing logistical inadequacies. The proposed projects earmarked in the Comprehensive Intermodal Transport and Logistics System (CITLS) 2023-2033 master plan are crafted not just to support economic growth but to bring about a qualitative life for citizens.
The First Half Progress Report 2024 on the Implementation of the Comprehensive Intermodal Transport and Logistics System (CITLS) 2023-2033, released by the Ministry of Public Works and Transport (MPWT) last month, identified 174 priority projects, including 94 road projects, eight railway projects, 23 river transport projects, 20 sea transport projects, 10 air transport projects, 15 logistics projects, and four additional projects. “The total investment for the implementation of these projects is estimated at $36.6 billion for 10 years,” the report said.
These projects are divided into short- and medium-term projects 2023-2027 (90 projects) and long-term projects 2028-2033 (91 projects), including seven projects to be implemented from short- to medium- to long-term.
According to the report, the implementation of these projects will strictly adhere to standard procedures for public investment projects. These include a series of critical steps: project identification, preparation of preliminary proposals, conducting feasibility studies, evaluation and review of proposals, project selection and budgeting, project management and implementation, periodic revision, efficient utilization of project infrastructure, and completion evaluation. Adherence to these procedures ensures transparency, efficiency, and optimal resource utilization throughout the project’s lifecycle.
Expressways, national roads
Ninety-four road projects have been identified to expand the Kingdom’s road infrastructure. These include the construction of nine expressways and 85 national and provincial roads, which will cost $13.6 billion. The road infrastructure expansion aims to improve connectivity, reduce travel time, and support economic activities nationwide.
The expressway projects are particularly significant as they will handle high traffic volumes and enhance regional integration. On the other hand, upgrading national and provincial roads will improve rural accessibility and contribute to equitable development. Timely implementation of these projects will play a pivotal role in transforming Cambodia’s transportation network and promoting economic growth.
Railroad expansion
Similarly, the Royal Government is keen to upgrade and connect different provinces with rail connections. Rail transport development is a critical component of Cambodia’s infrastructure strategy, focusing on linking socio-economic and transport sectors with regional best practices. The rail transport plan emphasizes upgrading existing railway lines – both northern and southern – to high-speed rail standards and exploring new routes. According to the MPWT report, a total of eight railway projects are planned, requiring a combined investment of $10.01 billion.
However, for short- and medium-term implementation (2023–2027), four projects with a total cost of $3.8 billion have been prioritized. These projects include significant upgrades to the current railway infrastructure to enhance capacity and speed. The remaining four long-term projects (2028–2033) are estimated to cost $6.2 billion. These ambitious plans aim to transform the country landscape into a regional transport hub, improving trade and connectivity with neighboring countries
Upgrading ports, FTC
The Royal Government approved the Port Law in 2024, bringing into force a regulatory framework to enhance the management and development of ports. The law reflects the government’s commitment to boosting trade efficiency and promoting sustainable economic growth.
One of the flagship projects under this framework is the ‘Funan Techo Canal’, Cambodia’s first major canal mega project, which has garnered widespread public support.
Additionally, the MPWT is implementing 23 river transport projects with an investment of $3.2 billion. These include 16 short- and medium-term projects (2023–2027) worth $2.5 billion and nine long-term projects (2028–2033) valued at $690 million.
Of the 16 short- and medium-term projects, three are ongoing, three are under feasibility studies, and 10 are delayed due to funding challenges. Two of these projects are expected to extend into the long-term phase, reflecting the government’s adaptive approach to project timelines and resource allocation. Successful implementation of these projects will enhance the country’s inland waterway transportation, reduce logistics costs, and support the growth of Cambodia’s maritime trade sector.
Maritime transport
Aligned with the Royal Government’s 7th mandate and Pentagonal Strategy, the MPWT has outlined 20 maritime transport projects requiring a total investment of $5.4 billion. These include 14 short- and medium-term projects (2023–2027) costing $2.4 billion and nine long-term projects (2028–2033) valued at $2.9 billion. Three of the short- and medium-term projects will continue into the long-term phase.
Among these initiatives, one project has been completed, another is scheduled for 2025, while 12 await funding and collaboration with development partners. These projects aim to enhance port capacity, improve shipping efficiency, and support Cambodia’s integration into global trade networks. The government’s focus on maritime transport is a strategic move to position Cambodia as a competitive player in regional and international logistics.
Aviation connectivity
Recognizing the growing demand for air transport, the Royal Government has prioritized 10 projects to develop Cambodia’s civil aviation sector. These projects, estimated at $3.2 billion, are scheduled for short- and medium-term implementation (2023–2027). Of these, three projects have been successfully completed, four are ongoing, and the remaining three have faced delays due to the global Covid-19 pandemic.
The planned projects include the development of new airports, expansion of existing facilities, and modernization of air traffic management systems. These initiatives aim to accommodate rising passenger and cargo volumes, enhance safety standards, and boost Cambodia’s appeal as a regional aviation hub. The government’s strategic focus on air transport underscores its commitment to supporting tourism, trade, and economic diversification.
Enhancing logistics
Based on an in-depth analysis of Cambodia’s logistics requirements, the Comprehensive Master Plan identifies 15 key logistics projects requiring a total investment of $957.5 million. These include nine short- and medium-term projects (2023–2027) valued at $630 million and six long-term projects (2028–2033) estimated at $327.5 million. Two of the short- and medium-term projects will extend into the long-term phase.
Of the nine short- and medium-term projects, two are currently under study, while six await funding and partnerships with development agencies. These projects aim to modernize Cambodia’s logistics infrastructure, reduce transportation costs, and improve supply chain efficiency. Enhanced logistics systems will significantly contribute to the competitiveness of Cambodian industries and facilitate regional economic integration.
Sustainable growth
Infrastructure development is a cornerstone of Cambodia’s economic strategy. Speaking at the inauguration of the Techo Santepheap Coastal Highway – Angkol Beach on November 11, 2024, Prime Minister Hun Manet emphasized the importance of robust infrastructure.
Efforts in building roads, waterways, railways, and airways are crucial, he stated. “These are fundamental to ensuring sustainable economic growth, facilitating transport, and enhancing local economic activities.”
The Prime Minister also highlighted key ongoing projects, including the Funan Techo Canal, the expansion of Sihanoukville Port, and logistics system upgrades. “In the past 15 months, the new government has achieved significant progress,” he added, reflecting the administration’s commitment to fostering national development.
These infrastructure initiatives are designed to address Cambodia’s growing demand for modern transport and logistics systems. By enhancing connectivity and reducing operational inefficiencies, the projects will not only support economic growth but also improve the quality of life for Cambodian citizens. With effective planning, collaboration, and execution, Cambodia is poised to achieve its vision of becoming a regional transport and logistics hub by 2033.
Domestic, regional linkages
Minister of Public Works and Transport Peng Ponea announced the implementation of the ‘CITLS 2023-2033’ master plan to bolster the nation’s 2050 development goals, focusing on enhancing transportation and logistics systems in line with the country’s Industrial Development Policy and Pentagon Strategy Phase 1.
Ponea said that to support Cambodia’s 2050 development goals, MPWT has begun implementing the comprehensive master plan ‘CITLS 2023-2033’ at the start of the seventh mandate. The plan is being carried out effectively and responsibly, yielding satisfactory results.
In alignment with the Cambodia Industrial Development Policy 2015-2025 (IDP) and the Pentagon Strategy Phase 1, the Comprehensive Master Plan outlines a long-term vision of improving and developing transportation and logistics systems, Ponea said.
The focus is on building physical and non-physical infrastructure to create interconnected transport systems with strong domestic and regional linkages, contributing to sustainable and inclusive national economic growth, he added.
“The Comprehensive Master Plan has four main objectives—to expand and improve the scope and capacity of the transport infrastructure system, to enhance the efficiency and effectiveness of transport services and infrastructure, to develop transport infrastructure to support national development policies, and to strengthen service efficiency and reduce logistics costs,” said Ponea.
An inter-ministerial meeting to review the CITLS was held in February under the chairmanship of Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia. The meeting was attended by ministers, technical officials from relevant ministries and institutions, and representatives of the private sector.
According to the CITLS, there are 94 road infrastructure projects, 8 railway projects, 23 river transport projects, 20 maritime transport projects, 10 air transport projects, 15 logistics projects, and 4 other projects.
The Royal Government is seeking financial support for public investment projects through public-private partnership mechanisms and foreign funding sources, Chanthol stated.
Phan Rim, Spokesman for MPWT, told Khmer Times that this comprehensive master plan will play a crucial role in helping the Royal Government of Cambodia achieve its ambitious economic goals.
Specifically, it aims to elevate the country to a high-middle-income status by 2030 and to a high-income status by 2050, he added. “There are four primary sources of funding for this plan: the public investment budget, the budget from development partners, the private sector budget, and funds from public-private partnerships (PPPs),” he explained.
These combined financial resources are expected to ensure the successful implementation of the master plan and contribute to the country’s long-term development, he added.
Catalyst to economic growth
Cambodia’s comprehensive Infrastructure Master Plan is poised to play a pivotal role in achieving the nation’s economic aspirations.
Economist Duch Darin told Khmer Times that infrastructure development significantly improves living standards for Cambodians. Improved roads and transport links enable quicker access to hospitals and clinics, particularly benefiting rural residents and students in remote areas also have better access to schools, helping reduce rural dropout rates.
“Modern roads, railways, and bridges make travel easier, save time, and lower transportation costs. Enhanced infrastructure has reduced transportation time and expenses, enabling businesses to transport goods to national and international markets more efficiently, thus driving economic growth,” Darin explained.
By advancing its infrastructure, Cambodia can strengthen its integration with ASEAN and global supply chains, boosting regional and international competitiveness, he said, adding that, notably, connecting rural areas to urban centers has enabled farmers and small businesses to access markets more easily, fostering economic growth in remote areas.
Regarding the government’s master plan, Darin highlighted that constructing and maintaining infrastructure projects has created valuable employment opportunities, further strengthening the national economy. Improved infrastructure also facilitates tourism, a key factor in increasing visits to Cambodia, he added.
Darin observed that Cambodia’s budget allocation for the transport sector comprises government funding for priority investment programs, contributions from development partners, and an emphasis on public-private partnerships.
“In the future, I believe Cambodia might also consider issuing infrastructure bonds to raise funds for major projects. For example, countries like Chile and the United States have successfully issued bonds to finance large-scale projects, such as highways, leveraging low-interest financing,” he said.
He further added that Cambodia could enhance foreign investment in the transport sector by creating attractive opportunities for investors to access financial capital for infrastructure development.
