WASHINGTON, April 27, 2026-Gaps in resilient transport links and logistics capacity continue to constrain Cambodia's trade and regional connectivity. To help address these challenges, the World Bank's Board of Executive Directors today approved the first phase of the Multiphase Programmatic Approach (MPA) Cambodia Regional Connectivity Improvement (CRCI) Program, with an overall $300 million International Development Association financing envelope. The first phase, approved at $150 million, will improve resilient transport connectivity along sections of the Asian Highway 21 (AH21) corridor and strengthen national logistics management capacity.
The program is expected to benefit more than 1.6 million people, including road users and communities living along the corridor. By improving road conditions and logistics systems, CRCI aims to support job creation, expand access to markets and services, and catalyze private investment in sectors such as logistics, agribusiness, transport services, and tourism.
"This program reflects the Royal Government of Cambodia's commitment to strengthening regional connectivity and ensuring that our transport infrastructure better serves both people and businesses," said H.E. Mr. Peng Ponea, Minister of Public Works and Transport. "Upgrading sections of national road along Asian Highway 21 will not just improve the connectivity among the country but also enhance logistics efficiency, reduce transport costs, and enable communities, farmers, and traders to access markets more effectively, both domestically and across borders."
The AH21 corridor provides important east-west inland connectivity between Cambodia and Viet Nam, and links Cambodia's northeastern provinces to domestic markets and regional trade routes. Phase 1 will focus on 247 km corridor infrastructure improvements alongside foundational activities to strengthen institutional capacity in logistics and trade facilitation. Phase 2 will complete the remaining 145km corridor sections, scale-up trade facilitation support, and enhance domestic access through rural road improvements.
"The World Bank is committed to standing with Cambodia as it strengthens the infrastructure and systems needed for inclusive growth and quality jobs," said Carlos Felipe Jaramillo, World Bank Vice President for East Asia and Pacific."Through investments in regional road corridors and stronger trade facilitation and logistics, this program will benefit more than 1.6 million people and help catalyze private investment and cross-border economic activity, particularly in agribusiness, cold chains, transport services, and tourism."
