World Bank Approves Cambodia Regional Connectivity Improvement Program
On April 27, the World Bank’s Board of Executive Directors approved the first phase of the Multiphase Programmatic Approach (MPA) Cambodia Regional Connectivity Improvement (CRCI) Program, with a total International Development Association (IDA) financing envelope of $300 million. The first phase, valued at $150 million, aims to enhance resilient transport connectivity along key sections of the Asian Highway 21 (AH21) corridor while strengthening national logistics management capacity. By improving road conditions and logistics systems, the program is expected to support job creation, expand access to markets and services, and catalyze private investment across sectors, including logistics, agribusiness, transport services, and tourism.
The AH21 corridor serves as a critical east–west inland link between Cambodia and Vietnam, connecting northeastern provinces to domestic markets and regional trade routes. Phase 1 will focus on upgrading 247 km of the corridor alongside efforts to strengthen institutional capacity in logistics and trade facilitation, while Phase 2 will complete the remaining 145 km and expand support for trade facilitation and rural access. According to Minister of Public Works and Transport Peng Ponea, upgrading sections of National Road along AH21 will improve connectivity, enhance logistics efficiency, reduce transport costs, and enable communities, farmers, and traders to better access domestic and cross-border markets. These improvements may support increased trade flows and open opportunities for U.S. businesses in the future.
