Infrastructure

Cambodia launches blended finance initiative to scale climate-resilient water services

Written byCristina Novo
2 min read
Cambodia launches blended finance initiative to scale climate-resilient water services

Cambodia has introduced a new joint programme designed to expand access to climate-resilient water services through an innovative financing approach that blends public and private capital. The initiative, known as the Water Infrastructure & Smart Energy Joint Programme (WISE JP), is led by the Ministry of Industry, Science, Technology & Innovation (MISTI), in partnership with the United Nations in Cambodia – UNICEF and the United Nations Capital Development Fund (UNCDF), and focuses on strengthening water supply systems while addressing climate risks.

At the core of the programme is a revolving blended-finance facility that combines concessional and commercial capital. This structure is intended to reduce borrowing costs for private water operators, enabling them to invest in infrastructure upgrades, renewable energy solutions and improved service delivery. In parallel, the programme provides technical assistance to water operators, financial institutions and Cambodia’s Credit Guarantee Corporation, helping to build capacity and mitigate investment risks.

WISE JP will mobilise private investments in renewable energy-powered water supply infrastructure and digital water management

The initiative responds to significant challenges in the country’s water sector, particularly in rural and climate-vulnerable areas. A substantial share of Cambodia’s children live in communities exposed to droughts, flooding and limited access to water, sanitation and hygiene services, highlighting the urgency of scaling resilient solutions.

Government representatives have emphasised the importance of private operators in extending water services to underserved areas, while noting persistent barriers to affordable financing. The programme is expected to contribute to sector modernisation and support broader national objectives related to clean water access and climate action. It is also projected to improve water services for more than 200,000 people.

From the United Nations perspective, the initiative represents a step toward expanding equitable access to sustainable water services, particularly for vulnerable populations. By leveraging innovative financing mechanisms, the programme aims to accelerate progress towards global development targets.

Aligned with Sustainable Development Goals 6 and 13, WISE JP will mobilise private investments in renewable energy-powered water supply infrastructure, including solar pumping and digital water management. Oversight will be ensured through a steering committee to maintain alignment with Cambodia’s national development strategies and climate commitments.

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