PHNOM PENH, Cambodia – Cambodia continues its strong national push to expand clean water access, bolstered by renewed technical and financial support from the French Development Agency (AFD) and Team Europe (European Union).

The long-term commitment was reaffirmed during a key meeting between H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation (MISTI), and an AFD delegation led by Mr. Jean-Pierre Marcelli, AFD Southeast Asia Regional Director.

I. Strengthening Infrastructure and Private Operators

MISTI Seeks Innovative Financing for Water Operators

Both sides reviewed ongoing efforts to strengthen public utilities and private water operators (PWOs), expand service coverage across the nation, and secure vital investment for water-supply infrastructure.

Minister Vanndy noted that MISTI currently conducts a nationwide assessment of PWOs and explores innovative financing channels, including non-collateral loans. He formally requested AFD’s additional support, specifically through its private sector financing arm, Proparco, to help PWOs improve service delivery and ensure superior water quality for communities.

II. A 30-Year Partnership and Global Recognition

Cambodia’s Water Sector: A Recognized Achievement

Mr. Marcelli underlined the profound depth of the 30-year partnership between Cambodia, AFD, and the European Union. He praised Cambodia’s water sector, particularly its development in Phnom Penh, calling it a recognized “global success story.”

He also highlighted the ongoing consideration of a new program in Siem Reap under the Livable City Project, showcasing AFD’s continued commitment to urban development.

III. Future Cooperation and Regulatory Standards

Team Europe to Help Establish Modern Water Regulator

Mrs. Sandrine Boucher, AFD Country Director, reaffirmed Team Europe’s continued engagement through the EU Global Gateway initiative. She noted plans for further assistance, including a new multi-tranche framework agreement.

Crucially, the cooperation will also focus on assisting Cambodia in establishing a modern water regulator structured according to international best practices, aiming to institutionalize efficient oversight and sustainability across the sector.

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However, the DPM’s subsequent remarks delivered a powerful strategic vision that extends far beyond physical infrastructure. H.E. Say Sam Al clearly articulated the government’s approach to Sihanoukville’s urbanization, emphasizing that development must be strictly founded on robust economic pillars before aesthetic or social planning can be prioritized. This guiding principle is the “Economy First, City Later” blueprint.

I. The New Urban Vision: Sihanoukville as a ‘Healthy Cell’ Network

From Standalone Project to Integrated Urban Cell

H.E. Say Sam Al emphasized that the stadium is not just a sports venue; it represents “one cell among many cells” crucial for orchestrating Sihanoukville’s urban future. This signals a shift away from isolated projects toward a networked, holistic planning model.

• The “Healthy Cell” Concept: The DPM stressed the need to arrange these cells to be “healthy and happy.” This vision integrates functional social spaces—the stadium complex includes a museum, parks, an amphitheater, and camping areas—with the city’s economic needs, ensuring a high quality of life alongside commerce.
• Adaptive Planning for Growth: The DPM indicated that the initial master plan was flexible, stating that the current efforts are “pioneering some new blueprints” that can be continually adapted. This ensures that the urban development of Sihanoukville remains responsive to economic growth rather than being constrained by rigid, potentially outdated designs.

II. The Core Principle: Economic Strength Must Pave the Way

Leveraging Sihanoukville’s Foundational Economic Drivers

The clear mandate for city planners and investors is that all major infrastructure spending must be strategically justified by the city’s ability to generate revenue. This ensures projects remain sustainable and prevents them from becoming non-performing assets.

“We must think that our Sihanoukville needs to have a vital life in this new era. We must pursue economic development first and arrange the city afterwards,” H.E. Say Sam Al stated.

The Three Strategic Economic Pillars

The DPM highlighted three irreversible national assets that form the robust economic foundation of Sihanoukville, making it a powerful investment hub:

1. The International Deep Seaport: The crucial expansion to a depth of 17.50 meters allows the world’s largest container vessels to dock, solidifying the port’s role as the region’s main logistical lifeline.
2. The International Airport: The airport’s proven capacity to handle all types of cargo and passenger aircraft strengthens Sihanoukville’s global connectivity for both trade and tourism.
3. The Phnom Penh-Sihanoukville Expressway: As Cambodia’s first expressway, it provides a high-speed logistical corridor, accelerating the movement of goods, people, and capital to and from the nation’s economic capital.

III. Security and Utility Guarantees for Global Investors

Ensuring Business Confidence and Quality of Life

The government’s vision is robustly backed by essential guarantees aimed at ensuring Sihanoukville is a reliable and safe investment destination:

• Security Assurance: H.E. Say Sam Al unequivocally stressed the commitment to guarantee public security and safety for residents, tourists, and, critically, investors. This includes a clear mandate to eradicate online scams that have previously damaged the city’s international reputation.
• Infrastructure Reliability: The DPM provided clear assurances on essential utilities, addressing a key investor concern:
  • Clean Water: Supply is sufficient, with strategic plans already in place to expand connectivity from Kampot province to meet future demand.
  • Electricity: The province currently maintains a sufficient electricity supply to support current and planned economic growth.

In conclusion, Sihanoukville’s strategic development is defined by a clear hierarchy: secure the strategic transport and logistics assets, guarantee safety and utilities, and then build holistic “healthy cell” urban development that integrates social and cultural life.

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Prime Minister Hun Manet Meets U.S. Business Delegation (US-ABC)

Cambodian Prime Minister Hun Manet recently hosted a delegation of U.S. investors at the Peace Palace. The group was led by Ted Osius, Senior Vice President of the U.S.–ASEAN Business Council (US-ABC) and former U.S. Ambassador to Vietnam.

Investor Concerns Addressed Through Open Dialogue

Mr. Osius expressed gratitude for the Royal Government of Cambodia’s sustained support and close cooperation with the US-ABC. He specifically praised the government’s open and transparent approach to addressing concerns from foreign investors. Osius voiced strong optimism regarding Prime Minister Hun Manet’s leadership.

The Government-Private Sector Forum (G-PSF): Boosting Confidence

A major focus of the discussion was the Government-Private Sector Forum (G-PSF). Mr. Osius commended this forum as a vital platform for dialogue, which is essential for boosting investor confidence and facilitating private-sector engagement.

The U.S. delegation, representing major American corporations, provided updates on their successful operations in the country. They collectively affirmed a strong interest in deepening existing investments and actively exploring new ventures in high-potential areas.

Key Investment Sectors Driving Cambodia’s Economic Growth

U.S. firms are targeting several key sectors, including:

• Healthcare
• Tourism and Hospitality
• Digital Technology
• Banking and Finance
• Infrastructure
• Smart Cities
• Automotive Industries
• Insurance

Alignment with Cambodia’s Pentagonal Strategy

The investors also reaffirmed their commitment to aligning their investment strategies with the Royal Government’s flagship Pentagonal Strategy for the current legislative term.

Cambodian Government Commits to Investor Success

Prime Minister Hun Manet warmly welcomed the US-ABC members. He emphasized that the continued investment and presence of these U.S. firms are pivotal to strengthening Cambodia–U.S. bilateral relations and accelerating national economic growth.

The Prime Minister underscored the Royal Government’s dedicated policies and mechanisms that ensure investor success. He stressed the commitment to regularly convening the G-PSF to proactively address private-sector proposals and challenges. He actively encouraged the American companies to deepen engagement with Cambodian ministries and institutions to facilitate further investment expansion.

The Pentagonal Strategy: Cambodia’s Economic Roadmap

The Pentagonal Strategy—Phase I (launched in August 2023) is the new socio-economic policy agenda for the Royal Government of Cambodia. It is a major, long-term plan designed to lay the foundation for Cambodia to become an upper-middle-income country by 2030 and a high-income country by 2050 (known as Cambodia Vision 2050).

It is named “Pentagonal” because it builds upon the previous “Rectangular Strategy” (which had four pillars), adding a strong new focus on Sustainability and Technology.

1. The Five Core Mottos (Goals)

The strategy is built on five guiding mottos that aim to ensure the nation’s progress is broad and lasting:

1. Growth: Maintaining strong economic expansion.
2. Employment: Creating more and better-quality jobs.
3. Equity: Ensuring fairness and reducing inequality across society.
4. Efficiency: Improving governance, public institutions, and economic processes.
5. Sustainability: Protecting the environment and ensuring long-term resilience (a key addition).

2. The Five Key Priorities (Focus Areas)

To achieve these mottos, the strategy highlights five key priorities for investment and development:

• People: Focus on human capital development (education, skills, health, social protection).
• Road: Continuing to build and improve infrastructure and logistics.
• Water: Expanding water supply and management.
• Electricity: Ensuring energy security, with a strong emphasis on renewables.
• Technology: Accelerating digital transformation across the economy and society (a major new focus).

Why the U.S. Investors Care

The U.S. companies mentioned in the article are interested in deepening investments in sectors like Digital Technology, Healthcare, and Infrastructure. These are areas that directly overlap with the government’s People, Technology, and Road/Water/Electricity priorities. By aligning their strategies with the Pentagonal Plan, they ensure their investments are supported by government policy and are part of the country’s official, long-term development vision.

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Basically, this huge project is designed to be a game-changer for farming all year long and will also seriously help stop those bad floods over in Pursat province.

What’s the Scoop?

This place is being built on the Pramoy River, specifically in the Rokat commune of Phnom Kravanh district, which is in Pursat province. The folks in charge of the project say that once it’s finished, this Reservoir No. 2 will hold a whopping 860 million cubic meters of water! That’s a ton of water.

This reservoir is a really big deal for Cambodia’s plan to make sure they have enough water security. It’s going to deliver four main awesome things:

1. Massive Irrigation: They’re going to use that 860 million cubic meters of water to irrigate about 262,500 hectares of farmland. That huge boost means farmers can count on good, stable harvests during both the dry season and the rainy season. This is a crucial step for food security—so everyone has enough food.
2. Flood Control: A major goal here is to get control of the water flow to significantly cut down on the bad seasonal flooding that constantly hits the lower areas of Pursat province. Those floods have historically caused massive damage to the economy and local buildings, so this is a huge relief.
3. Protecting Infrastructure: By managing the Pramoy River’s water levels better, the reservoir will help reduce the stress and damage floods usually cause to important local irrigation canals and public roads/buildings.
4. Eco-Tourism Boost: This isn’t just about water! The project is also expected to fire up the local economy by turning the surrounding area into a really cool natural eco-tourism spot. Think promising new parks and attractions!

Status Update

They actually started building this thing back in January 2025. As of right now (late November 2025), it’s already about 40 percent finished! The plan is to have Reservoir No. 2 completely up and running by December 2027.

Pretty exciting stuff, right? What do you think about turning an infrastructure project into an eco-tourism site?

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