What is infrastructure development?
Infrastructure development, which has a significant impact on economic development and is regarded as one of the key instruments for revitalising a country’s economy, is primarily concerned with the establishment of essential public facilities and services in a country or region. These include: transport systems, power generation facilities, communication facilities and other facilities thereof, as well as an organised and orderly system of government and politics. The purpose of infrastructure development is to provide basic public services, promote economic growth and social development, and improve the quality of life of residents. It brings convenience to the people in their daily lives and provides the foundation and support needed for businesses and industries to grow. Infrastructure development is a comprehensive field that requires the co-operation of government, the private sector and other stakeholders to ensure that facilities are built, maintained and renewed, and that public resources are used efficiently. It is a key programme that is essential for building the future.
Focus on strengthening infrastructure for economic development
In recent years, the Government of Cambodia has invested heavily in building infrastructure, including the following projects:
| Form | Items |
| Land transport construction | Phnom Penh – Westport motorway |
| Phnom Penh-Laos Highway | |
| Phnom Penh – Bavet Expressway | |
| Phnom Penh Ring Road | |
| Highways 1577 and 55 connecting the Thai border | |
| Construction of maritime transport facilities | Construction of a multi-purpose harbour in Kampot Province |
| Construction of large-scale distribution terminals | |
| Air traffic facilities | Phnom Penh New International Airport |
| Expansion of Western Harbour International Airport | |
| Siem Reap New International Airport | |
| Basic livelihood construction | Hydroelectric power station on the lower Sansai River |
| Dual-energy power plants | |
| Submarine cables | |
| Setting up free Wi-Fi in the city |
The full development of these infrastructure projects provides Cambodia with a strong foundation for economic growth. Together, the Government and businesses will benefit from them and drive the country’s economy to significant growth. These projects not only improve the efficiency of traffic and transport, but also facilitate trade and investment activities and provide a better quality of life for the people. This series of infrastructure developments paves the way for the country’s sustainable development and lays a solid foundation for future economic prosperity.
Blueprint for infrastructure development
The fifth Royal Government of Cambodia, which was established in September 2013, issued the Policy for the Third Phase of the Fourth Corner Strategy, which identifies priority development areas for the next five years. These include human resource development, infrastructure investment and business coordination mechanism development, agricultural development and value enhancement, and strengthening the implementation of good governance by state institutions. Transport infrastructure development has been an important focus for the Government of Cambodia, with particular attention to the construction of roads and bridges. In the case of roads, the Government hopes to use the strategy of “spending less and lending more” to promote the construction of roads. In terms of funding, the assistance and strength of various development partners is the main source. Although Cambodia does not yet have a motorway, there is still a great deal of anticipation for a motorway to Phnom Penh to Sihanoukville.
I. Railways
While the Cambodian Government is rehabilitating the existing railway, it is also paying more attention to the missing section of the new Trans-Asian Railway in Cambodia (257 KM from Padang, Cambodia to Loc Ninh, Vietnam). According to the ASEAN Interconnectivity Masterplan, this missing section should be completed by 2015 when the ASEAN Community is established. Due to the large amount of funding for this project, there is no specific commitment to participate in the construction at this time.
II. Electricity and power grids
It is the main area of investment of Chinese enterprises in Cambodia at present. Cambodia has not yet formed a national power grid, but consists of several independent power supply systems, which are not connected by high-voltage main transmission lines, which may result in the power generated by hydropower stations not being transmitted. According to Cambodia’s electricity plan, it is planned to build three major power grids throughout the country to reduce the cost of power supply and to achieve the goal of “covering the whole country with electricity by 2020, and 70% of households with electricity by 2030”.
Conclusion
There are no restrictions on the participation of Cambodian OFDI in local infrastructure investments. The Ministry of Public Works and Transport, the Ministry of Industry, Minerals and Energy and the Ministry of Posts, Telecommunications and Communications are the main government departments responsible for infrastructure development.
Collaboration with Australia on Sustainability Infrastructure
I. Promoting economic recovery and sustainable development in the South-East Asian region
The Australian Government’s Partnerships for Infrastructure (P4I) initiative has now been formally launched in Cambodia and focuses on an inclusive and sustainable approach to driving the South East Asian region’s return to economic growth from the impact of the epidemic. The initiative is working with Cambodia, Indonesia, Malaysia, the Philippines, Thailand, Viet Nam and other ASEAN countries in the areas of transport, energy, utilities and telecommunications, with over $120 million in funding support.
II. Key programmes of joint cooperation
On 31 May 2022, the Australian Ambassador to Cambodia, Pablo Kang, and Cambodia’s Deputy Minister of Public Works and Transport and Spokesperson, Pheng Sovicheano, launched the P4I initiative in Phnom Penh. The initiative involves work projects to update road standards, design a national wastewater strategy, and improve financing and cost recovery for Cambodia’s wastewater sector. The Initiative is also in talks with the Cambodian Ministry of Finance, the Telecommunications Regulatory Authority, and other institutions to expand co-operation in areas such as energy and telecommunications. By building capacity through public-private partnerships, the main thrust of the Initiative is to attract more quality private investment into Cambodia’s infrastructure sector.
III. Impact and expectations of the Initiative on Cambodia’s infrastructure
Speaking at the launch, Kang, Australia’s Ambassador to Cambodia, said the P4I initiative will accelerate resilient and inclusive growth in Cambodia, supporting the development of quality infrastructure in the Southeast Asian region and in Cambodia. Australia has a trusted reputation in this area with a wealth of experience and expertise. Australia looks forward to the benefits of this initiative as Cambodia works together to meet diversified needs and achieve an inclusive and resilient economic recovery.
Summarize
Cambodia has made significant progress in infrastructure development, and Australia’s Infrastructure Partnership Initiative (IPI) has opened up further cooperation and investment opportunities for the country. By working with Australia, Cambodia will be able to capitalise on Australia’s expertise for the purpose of advancing sustainable infrastructure, which will provide better public services and amenities for the Cambodian people, as well as attracting more domestic and foreign investment and accelerating the pace of economic recovery and social progress in Cambodia.
References
- 柬埔寨基础设施发展规划。国际投资贸易王。http://www.china-ofdi.org/ourService/0/3981
- 柬埔寨与澳洲合作推动永续基础建设。中华民国对外贸易发展协会。https://www.taitra.org.tw/News_Content.aspx?n=104&s=36797#
- 基础建设是推动国家经济发展的基石，为加快国家发展，柬埔寨近年大力开展基础设施建。 Titan Stone Group。https://www.titanstonegroup.com/zh/market-info/%E6%9F%AC%E5%9F%94%E5%AF%A8%E9%80%86%E8%A5%B2%EF%BC%81%E5%85%A8%E5%8A%9B%E7%99%BC%E5%B1%95%E5%9F%BA%E5%BB%BA%E7%B6%93%E6%BF%9F%E6%AC%B2%E9%A8%B0%E9%A3%9B/
