ASIATODAY.ID, WASHINGTON — The World Bank has approved a US$115 million financing package to strengthen Cambodia’s electricity grid and accelerate industrial energy efficiency, reinforcing the country’s ambition to become one of Southeast Asia’s emerging hubs for green manufacturing and sustainable investment.
The financing package includes a US$110 million credit from the International Development Association (IDA) and a US$5 million grant from the Energy Sector Management Assistance Program (ESMAP). The funding will support Cambodia’s transition toward a greener economy while enhancing energy security, industrial competitiveness, and job creation.
The Sustainable Energy Transition Project aims to modernize the country’s power infrastructure, improve grid reliability, and promote energy-efficient technologies across industries. The investment is expected to benefit electricity consumers, public institutions, industrial enterprises, renewable energy developers, energy service providers, and suppliers of energy-efficient equipment, while creating more and better-quality jobs.
“Cambodia has achieved remarkable success in expanding electricity access. By strengthening the grid and helping businesses use energy more efficiently, this project will support a clean transition that shields the economy from global energy volatility, drives growth, boosts competitiveness, and creates quality jobs,” said Tania Meyer, the World Bank’s Country Manager for Cambodia on June 26.
Cambodia’s electricity demand has risen rapidly over the past decade, driven by industrialization, urbanization, and improving living standards. Although electricity access is now nearly universal, the country is entering a new phase of development focused on delivering a power system that is more reliable, affordable, resilient, and increasingly powered by clean energy.
The project marks Phase VII of the Accelerating Sustainable Energy Transition Multiphase Programmatic Approach (MPA) in the East Asia and Pacific region, reflecting the World Bank’s broader strategy to support low-carbon economic growth across developing economies.
Cambodian Minister of Mines and Energy Keo Rottanak reaffirmed the government’s commitment to a just energy transition guided by the CARE principles — Clean, Affordable, Reliable, and Equitable energy.
He said the government’s energy strategy is designed to ensure that the transition to cleaner power supports households, businesses, and long-term national development while strengthening Cambodia’s industrial base.
The World Bank’s latest financing underscores intensifying competition among Southeast Asian economies to attract global manufacturers seeking reliable, low-carbon energy supplies. As multinational companies increasingly prioritize sustainability in their supply chains, countries capable of delivering affordable and clean electricity are expected to secure a larger share of future industrial investment.
For international investors, Cambodia’s latest energy initiative signals the country’s determination to strengthen its position as an emerging destination for green manufacturing, renewable energy development, and sustainable industrial growth in one of the world’s fastest-growing economic regions. (AT Network)
Follow Us at Google News, WA Channel, and LinkedIn