Add new rolling stock and rehabilitate the existing railway network to improve the reliability and efficiency of trade leading to increased revenues and economic growth. Exporters in agricultural sectors such as rice, manufacturing of paper, granite and generalised container freight are expected to benefit. Largest impact expected for businesses that are highly dependent on time for delivery of goods (e.g., perishable food items).

SDG assessment

8.5 + 9.4 – Develop regional and trans-border infrastructure, to support economic development and well-being.

Challenge: The bond market in Cambodia is nascent, with less than 10 local bond transaction issued to date.

Channel: Demonstration and Replication of the first floating rate 10 year bond subscribed by domestic insurance companies, the first listed ‘infrastructure’ bond recognised by the Cambodia securities regulator, and the first rated AAA bond by the Cambodian Rating Agency.

Outcome: Facilitate future infrastructure funding through similar domestic capital market structures in the country.

Transition: Initially expected to be high as fuel cargo is a source of current revenues. This is expected to fall overtime with the transaction adding new wagons that are designed to transport differentiated cargo in sectors such as agriculture.

Physical: A climate risk assessment was undertaken and further work will be conducted to mitigate against potential flooding risk.

Mobilised $23.9m from the private sector. TA Provided $118k in January 2023 to cover first of its kind transaction bond issuance costs in the context of the Cambodian market.

47% of the overall management team are female and this will be monitored at the Holdco level during the life of the project. A Gender Action plan will be implemented within one year of financial close detailing how this percentage will be maintained.

As part of the due diligence process, 21 HSES enhancement opportunities were identified which are now reflected in the Project Environmental and Social Action Plan (ESAP). Identified potential opportunities to support community rail safety awareness initiatives.