Infrastructure & PPPs in Singapore, Laos and Cambodia - Q4 2025 Update

YOG INFRA
2 days ago
17 min read

SINGAPORE, LAOS, AND CAMBODIA are collectively advancing large-scale infrastructure and energy development through Public Private Partnership (PPP) models, regional integration, and clean energy expansion. SINGAPORE is anchoring regional demand with over 2.3 GW of planned cross-border renewable imports, a 700 MW data centre park, and PPP-driven investments in green fuels, SAF, autonomous and electric transport, and smart logistics. LAOS is emerging as a regional supply and transit hub, exporting 600 MW of wind power to Vietnam and delivering major PPP/BOT transport corridors—including the Vientiane–Boten Expressway, the Laos–Vietnam Railway, and airport modernisation—strengthening multimodal connectivity. CAMBODIA is scaling policy-backed PPPs and concessional financing to support its energy transition and logistics agenda, with USD 3.25 Bn earmarked for river transport and water logistics.

Read the latest developments in Infrastructure and PPPs in the three countries in our latest insight.

SINGAPORE

SINGAPORE ALLOCATED MORE LAND FOR GREEN ENERGY AND DATA CENTRE PARK

The Government of Singapore set aside 300 hectares on the western side of Jurong Island—around 10% of its total area—for renewable energy projects and low-carbon fuel production. The initiative, announced by the Singapore Economic Development Board (EDB) and JTC Corporation, aims to transform Jurong Island into a global hub for new energy technologies.

The development will support solar power generation, sustainable aviation fuel, low- or zero-carbon ammonia solutions for power and maritime uses, and battery storage systems. Additionally, another 20 hectares will be allocated for the country’s largest data centre park, designed to deliver up to 700 MW of capacity, benefiting from Jurong Island’s robust energy and utility infrastructure.

SINGAPORE LAND TRANSPORT AUTHORITY ENHANCED CRITICAL RAILWAY INFRASTRUCTURE WITH NOKIA OPTICAL LAN AND IP SOLUTIONS

Nokia, working in partnership with Hitachi Rail, announced that LTA will deploy its IP/MPLS and fiber Optical LAN solutions as part of an expansive video surveillance upgrade to its critical railway infrastructure. The Nokia solutions will enable LTA to significantly enhance its CCTV network used across Singapore’s heavily utilized railway system serving Mn of passengers per day.

The CCTV cameras play a critical role within the LTA railway system, providing real-time monitoring and video surveillance services that ensure public safety, help spot illegal activities, and manage traffic patterns. With CCTV cameras placed across more than 50 stations, LTA needed a network infrastructure that could meet its growing capacity demands.

To support its expanding network cameras and growing bandwidth requirements, LTA deployed Nokia’s fiber Optical LAN including hardened ONUs and future-proof OLTs capable of supporting 25Gb/s speeds. Designed as a future-ready solution, Optical LAN requires up to 70% less cabling and 40% less power compared to traditional copper-based LAN networks. Nokia’s IP/MPLS deployment also enables LTA to more effectively backhaul the network data traveling to its Operations Control Center where live video streams are viewed and stored.

SINGAPORE AND CHINA TO ESTABLISH GREEN AND DIGITAL SHIPPING CORRIDOR

Singapore’s Ministry of Transport and China’s Ministry of Transport have signed a memorandum of understanding (MoU) to establish the Singapore–China Green and Digital Shipping Corridor, elevating bilateral maritime cooperation to the national level. The initiative builds on earlier city- and province-level partnerships with Tianjin (2023) and Shandong (2024).

Under the MoU, both countries will collaborate with industry stakeholders to promote maritime decarbonisation, improve port and supply-chain efficiency, and develop the technologies, infrastructure, and standards necessary for a more sustainable and connected maritime ecosystem. The agreement also focuses on strengthening digitalization in shipping operations by promoting data-driven solutions to enhance efficiency, resilience, and transparency across the maritime value chain. The corridor aligns with both nations’ commitments to green shipping and supports their broader objectives of advancing sustainable maritime trade, digital innovation, and low-carbon port operations within the region.

BYD-LED CONSORTIUM TO DEPLOY AUTONOMOUS BUS IN SINGAPORE

A consortium comprising BYD, MKX Technologies, and Zhidao Network Technology secured a contract from Singapore’s Land Transport Authority (LTA) to launch autonomous buses for public service operations starting in the second half of 2026. The pilot phase will introduce six driverless buses on routes 191 and 400, with plans to expand to up to 150 autonomous vehicles as part of a phased rollout.

The project aims to complement existing bus operations and address manpower shortages by maintaining routes with lower ridership and enabling new services. The autonomous buses—expected to be similar to BYD’s J6 model launched in Kyoto in 2021—will feature a compact six-meter design suited for Singapore’s dense urban areas. Equipped with cameras, radar, LiDAR, and remote-operation systems, the vehicles will undergo rigorous testing under LTA supervision. The initial phase will include a safety operator onboard before transitioning to remote monitoring.

This marks a major milestone in Singapore’s public transport innovation, positioning it among the early adopters of driverless public bus operations. BYD and Zhidao have prior experience deploying autonomous buses across Japan, Hong Kong, and multiple Chinese cities, demonstrating proven safety records in mixed-traffic environments. The LTA contract signals Singapore’s strategic move toward automated, efficient, and sustainable urban mobility.

SEMBCORP AND SARAWAK ENERGY RECEIVED CA TO IMPORT 1 GW RENEWABLE POWER TO SINGAPORE

Sembcorp Utilities Private Limited and Sarawak Energy Berhad (SEB), forming a consortium, received conditional approval (CA) from Singapore’s Energy Market Authority (EMA) to import approximately 1 GW of renewable energy from Sarawak to Singapore. SP PowerInterconnect will act as the technical partner for the project, which is scheduled to commence operations around 2035.

The project will deliver renewable electricity primarily from certified sustainable hydropower sources in Sarawak, transmitted via over 700 km of subsea cables. The consortium signed a preferred supplier agreement with Prysmian to optimize the design and deployment of the high-voltage subsea interconnector, enabling round-the-clock green baseload energy for Singapore.

The initiative is Singapore’s first large-scale, continuous renewable power import project and aims to strengthen regional energy cooperation, enhance grid resilience, and support the ASEAN Power Grid. The project is being advanced toward full operational readiness by the consortium and technical partners.

AETHER FUELS AND ASTER PARTNER ON FIRST SAF FUEL PLANT IN SINGAPORE

Sustainable aviation fuels (SAF) producer Aether Fuels and Aster, a provider of energy and chemical solutions in Southeast Asia, have signed a deal to develop a commercial-scale SAF production facility at Pulau Bukom in Singapore. Combining Aether’s breakthrough technology with Aster’s deep expertise at its fully integrated Singapore refining and chemical hub, this facility will position Singapore at the forefront of energy transformation and decarbonisation. Project Beacon, Aether’s commercial demonstration facility, will utilise the company’s Aurora technology to produce up to 50 barrels of fuel per day (2,000 tonnes of fuel per year). It will convert industrial waste gas and biomethane into CORSIA certified SAF, achieving more than a 70% reduction in greenhouse gas (GHG) emissions compared with conventional jet fuel, making it the first commercial facility of its kind. Project Beacon is expected to commence construction in 2026 and begin commercial operations in 2028.

By bringing together Aether’s technology with the expertise of our Bukom facility, Aster is demonstrating how partnerships between established industrial leaders and agile innovators can catalyse the introduction of disruptive solutions on a commercial scale. Singapore is a natural location for this breakthrough facility, with its world-class talent, strong innovation ecosystem, and steady support from the Economic Development Board (EDB). It is also where Aether began as a venture-build at Xora Innovation, a global deep-tech venture firm backed by Temasek, making this project especially meaningful. This new SAF facility strengthens Singapore’s competitiveness as a hub for sustainable products and demonstrates how companies here can seamlessly collaborate to scale breakthrough innovations.

HYUNDAI MOTOR AND SINGAPORE EDB TO DEVELOP LOW-CARBON AND HYDROGEN TECHNOLOGY

Hyundai Motor Group (HMG) signed a memorandum of understanding (MoU) with Singapore’s Economic Development Board (EDB) to explore opportunities for developing low-carbon technologies, including hydrogen. The collaboration will focus on identifying potential partnerships with local enterprises and innovation partners to advance hydrogen solutions and sustainable energy applications.

The initiative will leverage HMG’s Hyundai Motor Group Innovation Centre Singapore (HMGICS), the company’s first global open innovation hub and testbed. Under the MoU, HMG and EDB will explore hydrogen technology integration, including the potential use of Singapore’s pipeline network for distribution and the expansion of the regional clean hydrogen ecosystem.

The partnership aligns with Singapore’s strategy to develop a low-carbon economy and strengthen its position as a global innovation hub. HMG aims to use the collaboration to demonstrate hydrogen’s potential as a key technology for sustainable energy, while EDB will facilitate connections with local companies and start-ups to support scalable clean energy solutions.

MEDCO PLANS FIRST GREEN POWER EXPORT TO SINGAPORE IN 2028

PT Medco Power Indonesia aims to export up to 600 MW of solar power to Singapore starting in 2028 through its Pulau Bulan solar photovoltaic (PV) project, which is planned to have a 2 GWp capacity. The project, one of the region’s largest cross-border renewable energy initiatives, will use a dedicated subsea link similar to Indonesia’s existing gas pipelines to Singapore.

This initiative has economic benefits, including job creation, support for future industries, foreign exchange generation, and the strengthening of the nation’s green economy. Indonesia’s renewable energy potential is estimated at 3,600 GW, yet only 0.6% is currently utilised, leaving substantial opportunities for domestic and regional supply, particularly to Singapore, which seeks to convert half of its 6 GW electricity capacity to green energy.

BAHRAIN AND SINGAPORE ADVANCE DEPLOYMENT OF CROSS-BORDER DIGITAL PUBLIC INFRASTRUCTURE

BENEFIT, Bahrain’s national digital infrastructure provider, and Singapore-based MonetaGo have begun implementing the Kingdom’s first Trade Finance Registry (TFR), in partnership with Bahrain FinTech Bay. The system will create a unified digital ledger for financed trade transactions and invoices, helping generate alternative credit data, strengthen fraud prevention, and expand SME access to financing. The initiative marks a key step in Bahrain’s broader push to scale digital public infrastructure.

The TFR aims to improve transparency across the financial system by reducing bank’s exposure to duplicate financing and other fraud risks, while supporting the expansion of commercial lending to SMEs—who currently face limited access to credit despite accounting for the majority of businesses in the Kingdom. The collaboration leverages Bahrain’s fintech ecosystem and Singapore’s established digital trust frameworks, positioning both countries to build interoperable cross-border digital infrastructure connecting Asia and the Middle East.

BENEFIT and MonetaGo are also developing a digital trade bridge and shared risk-mitigation framework intended to support secure, region-wide financial connectivity. The initiative builds on Singapore’s TFR, deployed in 2023 by the Association of Banks in Singapore using MonetaGo’s Secure Financing technology, which has since onboarded more than 50 banks.

PSA SINGAPORE AND COSCO TO PARTNER ON REGIONAL DISTRIBUTION FACILITIES

PSA Singapore (PSA) and Goldlead Supply Chain Development (Southeast Asia) Pte.Ltd. (COSCO) signed a Memorandum of Understanding (MOU) to explore collaboration on dedicated warehouse and logistics capabilities in Singapore. COSCO is a joint venture between COSCO Shipping Holdings Co., Ltd. and COSCO Shipping International (Singapore) Co., Ltd. The focus of the partnership is the upcoming PSA Supply Chain Hub Tuas (PSCH). This state-of-the-art complex is strategically co-located within the same Free Trade Zone as Tuas Port and is slated to commence operations in 2027. PSCH will integrate various value-added capabilities under one roof, including container freight stations, a regional distribution center, cold storage, and dangerous goods handling. The hub is expected to serve the growing flows of high-value cargo across Southeast Asia, China, and the broader Asia-Pacific region.

This collaboration marks a significant expansion of the longstanding partnership between PSA and COSCO, moving beyond traditional container port operations into providing integrated supply chain solutions. The partnership aims to deliver enhanced value by combining PSA’s integrated Port Ecosystem—encompassing port-centric, value-added services and end-to-end supply chain solutions—with COSCO’s extensive shipping and logistics network. The collaboration reinforces PSA’s efforts to strengthen key nodes and build resilient ecosystems while leveraging Singapore’s strategic position as a global logistics and transhipment hub.

SINGAPORE ORDERED 660 ELECTRIC BUSES AS IT PHASE OUT DIESEL FLEET

Singapore's Land Transport Authority (LTA) awarded six contracts for 660 new electric buses, including 360 single-deck and 300 double-deck vehicles, with a total cost of USD 322.2 Mn, these new vehicles will replace diesel-powered buses that are reaching the end of their statutory lifespan. This is part of Singapore’s push to decarbonise land transport.

They feature a three-door design with two staircases. This will enable commuters on the upper deck to disembark via the rear staircase to make boarding and alighting smoother and quicker. Both the single-deck and double-deck electric buses will have a passenger information display system that gives audio and visual updates on the journey. To enhance safety and assist drivers, the buses will have on-board surveillance cameras, collision warning systems, cameras to detect objects outside the bus, and driver anti-fatigue monitoring systems. The new single-deck electric buses can travel at least 310 km before they need to be recharged, while the double-decker bus models can travel at least 240 km.

JTC LAUNCHED TENDER FOR SINGAPORE’S FIRST OVERHANG SOLAR PV

JTC launched a tender to develop Singapore’s first overhang solar photovoltaic (PV) system at 15 Woodlands Loop. The pilot project tests the viability of PV systems on overhang structures constructed across void spaces between multi-storey industrial buildings, to serve as an alternative to conventional land-based or rooftop installations. The first stage of the project involves designing, constructing, operating, and testing the overhang solar structure over 15 months.

A key success indicator for the pilot is to achieve a minimum installation capacity of 250 kilowatt-peak (kWp) across the identified void space of about 4,300 square metres between the buildings. Upon successful installation and commissioning, the project will then be operational for a 10-year period, where generated electricity will be exported to the national grid. JTC will also study the potential to replicate and scale the deployment of similar overhang PV systems across other industrial estates, drawing on insights and findings from the pilot. Such deployment unlocks additional solar capacity across JTC estates and opens opportunities for scaling to other multi-storey buildings in Singapore.

LAOS

CROSS-BORDER WIND POWER PROJECT IN LAOS TO BEGIN SUPPLYING VIETNAM BY END OF 2025

A major wind power project backed by Vietnamese investment in Laos’ Bolikhamxay Province is now 80% complete and is expected to begin full commercial operations by the end of 2025. The Truong Son Wind Farm, located in Khamkeut and Xaychamphone districts, is designed to generate 600 megawatts of electricity, which will be exported to Vietnam to support the country’s growing demand for clean energy. The project is being developed in two phases. Truong Son Wind Project 1 is valued at over USD 371 Mn, while Project 2 is worth around USD 556 Mn. Both sites are situated at altitudes between 1,400 and 2,000 metres above sea level and are planned to operate for 25 years.

Electricity from the wind farm will be transmitted to Vietnam through a 220-kV line connecting to the Do Luong substation in Nghe An Province. This marks the first time a Vietnamese private company invested in a cross-border transmission line to import power from Laos. The Truong Son Wind Farm is part of a broader renewable energy push in Bolikhamxay.

VIENTIANE–BOTEN EXPRESSWAY SET FOR COMPLETION BY 2030

The Government of Laos reaffirmed plans to complete the 440-km Vientiane–Boten Expressway by 2030, a key infrastructure project linking the capital with the China border town of Boten in Luang Namtha Province. The expressway will extend northward from the 109-km Vientiane–Vang Vieng section, which opened in 2020, through Luang Prabang and Oudomxay to Boten. Survey and design works for the Vang Vieng–Luang Prabang section have been completed, while the Oudomxay–Boten section received construction approval in mid-2024. Developed under a 50-year Build-Operate-Transfer (BOT) model, the project aims to complement the Laos–China Railway by providing a parallel multimodal corridor that enhances connectivity and logistics efficiency.

Once fully operational, the expressway will significantly reduce travel times and improve trade and tourism across northern Laos. The completed Vientiane–Vang Vieng segment has already shortened travel from 3.5 hours to one hour, showcasing the network’s potential to drive regional development, boost investment, and foster stronger people-to-people and economic ties between Laos and China.

LUANG PRABANG INTERNATIONAL AIRPORT TO UNDERGO MAJOR PPP-LED MODERNISATION

The Luang Prabang International Airport in Laos is set for a major upgrade under a Public–Private Partnership (PPP) initiative led by the Ministry of Public Works and Transport, in collaboration with the International Finance Corporation (IFC). The project aims to enhance the airport’s capacity and service standards to support tourism growth and strengthen regional air connectivity.

The development plan includes constructing a new international terminal, expanding the existing terminal for domestic operations, and adding new aircraft parking bays. It also involves upgrading airport access roads, modernizing passenger facilities to meet international standards, and potentially extending operating hours to 24/7. A pre-bid conference held in Vientiane on October 21 brought together four shortlisted firms — Yunnan Infrastructure Investment Company Limited (China), Limak (Turkey), China Road and Bridge Corporation (CRBC), and Korea Airports Corporation (KAC) — selected from eight applicants who submitted expressions of interest in June 2025. The estimated cost of the project is USD 150 Mn

CONSTRUCTION WORKS FOR LAOS–VIETNAM RAILWAY TO BEGIN IN 2026 WITH OPERATIONS TARGETED FOR 2030

The Government of Laos and the Government of Vietnam confirmed that construction of the first cross-border railway linking the two countries will begin in 2026, with commercial operations targeted for 2030. The project is being developed as a Public–Private Partnership (PPP) between Petroleum Trading Lao Public Company (PTL) and Vietnam’s Deo Ca Group JSC, with a total estimated investment of USD 6.6 Bn. The railway will span 452 km within Laos and 119 km in Vietnam, connecting Vientiane with Vietnam’s Vung Ang Port in Ha Tinh province. The line will provide Laos with direct maritime access for the first time and is intended to support bulk cargo, container traffic and regional freight logistics.

Preparatory works in Laos, including feasibility studies, detailed surveys, environmental assessments and financing arrangements, have reached about 90% completion. Construction on the Vietnamese section is expected to begin in 2027 following final economic evaluations and design approval. The project is positioned as a strategic logistics corridor under bilateral economic cooperation frameworks between Laos and Vietnam. In addition to rail connectivity, the agreement grants Laos priority access to Wharves 1, 2 and 3 at Vung Ang Port, which currently has a handling capacity exceeding 6 Mn tonnes per year following the commissioning of Wharf 3 in April 2025. Once operational, the railway is expected to lower transport costs, improve export competitiveness and strengthen regional supply chains across mainland Southeast Asia.

VIETNAM-BASED FIRM PARTNERS WITH AVILA TO EXPAND E-TAXI SERVICES IN LAOS

Vietnam’s Green and Smart Mobility JSC (GSM) signed a strategic cooperation agreement through its Lao subsidiary with the Vietnam Business Association in Laos (AVILA) to expand electric taxi and green transport services in Vientiane. The partnership targets the rollout of fully electric mobility solutions for businesses and urban users. Under the agreement, GSM Laos will deploy an all-electric fleet for taxi services, airport transfers, event-based transport and customized mobility solutions. Partner enterprises will gain access to a digital transport management system for route tracking, reporting and cost optimization.

The project also includes EV experience programs, training workshops and awareness campaigns. The initiative aligns with Laos’ national sustainable development agenda and positions AVILA as the first business organization to formally collaborate with GSM on green mobility deployment in the country.

LAOS AND THAILAND OPEN FIFTH FRIENDSHIP BRIDGE ACROSS MEKONG RIVER

The Governments of Laos and Thailand inaugurated the fifth Lao–Thai Friendship Bridge, marking a major milestone in bilateral cooperation and strengthening cross-border connectivity between the two countries. The opening ceremony was held at the bridge site linking Pakxan district in Bolikhamxay province, Laos, with Bueng Kan province in northeastern Thailand.

The bridge is expected to play a key role in enhancing transport efficiency, trade, and tourism by improving connectivity along the regional East–West Economic Corridor. The new crossing will support smoother logistics flows and generate socio-economic benefits at both local and regional levels, while further integrating Laos into regional supply chains.

Spanning approximately 1,350 metres, the bridge directly connects Laos’ Route 13 with Thailand’s Highway 244 and is equipped with structural health monitoring systems to ensure long-term safety and durability. Feasibility studies and detailed design were completed between 2012 and 2014, followed by the signing of a construction agreement in June 2019. Construction began in mid-2020 on the Thai side and early 2021 on the Lao side, with final concrete connection and agreements on ownership, management, and maintenance completed in June 2025.

Beyond its economic and transport significance, the bridge was described as a symbol of the long-standing friendship and strategic partnership between Laos and Thailand. Its completion coincides with preparations for the 75th anniversary of diplomatic relations between the two countries, further underscoring its importance in strengthening bilateral ties and regional connectivity.

CAMBODIA

ADB FUELED CAMBODIA’S ENERGY TRANSITION WITH USD 82.5 MN REFORM PROGRAMME

The Asian Development Bank (ADB) approved the second phase of Cambodia’s Energy Transition Sector Development Program for USD 82.5 Mn. Cofinanced by the ASEAN Infrastructure Fund, the Asia–Pacific Climate Finance Fund, the Green Climate Fund, and the United Kingdom through the ASEAN Catalytic Green Finance Facility, the programme aims to provide comprehensive support for the country’s clean energy transition by combining policy reforms with investment projects in new technologies.

Under the first subprogram approved in 2022, policy measures were introduced to guide the energy sector toward a more efficient and renewable development pathway. Building on this foundation, subprogram 2 advances regulatory reforms to strengthen the energy efficiency framework and enhance policy clarity to attract private sector investment.Top of FormBottom of Form

Subprogram 2 will also establish an Energy Efficiency Revolving Fund aimed at facilitating access to finance for local small and medium-sized enterprises (SMEs) to invest in energy-efficient technologies. The revolving fund will be set up through a financial intermediation structure to enable local banks to extend loans to SMEs for energy efficiency investments. The third phase will be rolled out in 2027. Under this, it aims to further deepen reforms by expanding the energy efficiency regulatory framework and introducing technical standards for renewable energy, buildings, and industry to further attract private sector investment.

CAMBODIA NEEDS OVER USD 3.25 BN TO BOOST RIVER TRANSPORT, WATER LOGISTICS

Cambodia requires a total investment of USD 3.25 Bn to strengthen its river transport network and water logistics system, with 23 river transport projects set to be launched under the Comprehensive Intermodal Transport and Logistics System (CITLS) 2023-2033 master plan. Projects will significantly improve connectivity, enhance trade efficiency and reduce transport costs across the Kingdom.

The government also initiated the historic Funan Techo Canal project, Cambodia’s first canal development, which will pass through Kandal, Takeo, Kampot and Kep provinces. Authorities have already established regulations and designated land boundaries for the second section in Kampot province.

Under the CITLS framework, the government outlined 16 short- and medium-term projects (2023-2027) worth USD 2.56 Bn and nine long-term projects (2028-2033) valued at USD 690 Mn. Two of the short- and medium-term projects will extend through to 2033. Improving the river transport and water logistics system will be vital to supporting Cambodia’s growing economy, easing the movement of goods, and positioning the Kingdom as a more competitive regional trade hub. The 23 river transport projects, requiring a total investment of USD 3.25 Bn, will be rolled out to strengthen Cambodia’s logistics system, cut transport costs and attract greater investment into the country.

CAMBODIA APPROVES USD 280 MN IN NEW INVESTMENT PROJECTS FOR PREAH SIHANOUK

The Government of Cambodia approved 17 investment projects worth USD 280 Mn in Preah Sihanouk province under the Special Investment Promotion Program. The projects are expected to create around 2,000 jobs and include developments such as a mixed-use commercial centre, an aluminium processing plant, a feed production facility, a multi-functional building and a hotel.

The team reviewed new applications and granted incentives to support project implementation. These include tax and customs exemptions, streamlined licensing and registration, and support for factory launches to enable investors to operate more efficiently. From 2024 to September 2025, the working group approved incentives for 392 investment projects worth a total of USD 7.8 Bn, with the potential to generate more than 50,000 jobs. These include previously stalled projects, new investments, expansions and ongoing developments.

CAMBODIA PLANS USD 3 BN CONCESSIONAL BORROWING TO BOOST INFRASTRUCTURE

The Government of Cambodia is preparing to secure over USD 3 Bn in concessional loans in 2026 to finance public investment projects aimed at enhancing infrastructure, energy, irrigation, education, and digital connectivity. The Draft Law on Finance for Management 2026, released by the Ministry of Economy and Finance (MEF), authorises borrowing of USD 2.25 Bn Special Drawing Rights (SDR), equivalent to approximately USD 3.1 Bn, on highly concessional terms with below-market interest rates and favourable repayment schedules.

The funds will target large-scale infrastructure and public-service developments to strengthen economic productivity and competitiveness. The MEF will act as the legal authority to negotiate and sign agreements under the Prime Minister’s approval and must report progress to the National Assembly and Senate biannually. Economists highlight that these investments aim to generate jobs, reduce logistics costs, improve agricultural resilience, and attract private sector participation. Outcome-based indicators—such as rural road coverage, electricity distribution expansion, and digital service access—will guide project assessment.

Cambodia’s public debt remains sustainable, standing at USD 12.67 Bn at the end of Q2 2025, with external debt accounting for 99%. Total public debt is 18.4% of GDP, well below the 40% cautionary threshold. The majority of the new loans will be highly concessional, carrying an average grant element of 36%, keeping the risk of debt distress low. The borrowing aligns with the government’s medium-term strategy to enhance infrastructure, human capital, and national competitiveness while maintaining fiscal sustainability.

INFRASTRUCTURE PROJECTS WORTH USD 400 MN UNDER REVIEW FOR CAMBODIA’S NORTHEAST PROVINCES

The Government of Cambodia reviewed 11 investment projects worth USD 400 Mn under the Special Programme to Promote Investment in the Northeastern Provinces (SPIN), aimed at accelerating development in Kratie, Stung Treng, Ratanakiri, and Mondulkiri. The projects are expected to create around 800 jobs and strengthen local economies through diversified investments across agriculture, agro-industry, hospitality, education, healthcare, and transport infrastructure.

A key proposal includes a USD 350 Mn multipurpose port project in Kratie Province, planned as the region’s first major logistics hub, with future links to the Funan Techo Canal. Other initiatives involve agro-processing facilities, resorts, and educational institutions.

Authorities have been directed to streamline procedures through the One Window Service mechanism and ensure investor accountability regarding job creation and sustainable development. Cambodia’s northern corridor attracted 21 project proposals totalling USD 700 Mn, reflecting increasing confidence in the government’s regional development strategy.

List of key transactions - Singapore, Laos and Cambodia Q4 2025

Source: YOG INFRA, Public Information

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