On 29 November 2024, the Royal Government of Cambodia have issued a decision on the Selection of Priority Sectors for Public-Private Partnerships Projects 2025-2035 (“Decision”) selecting the following sectors:

  • transportation and logistics sector (roads, bridges, ports, and logistics);
  • energy sector; and
  • public services sector (clean water supply and waste management).

This Decision builds upon Article 8 of the Law on Public-Private Partnerships 2021, which broadly identifies eligible sectors for PPP projects, including transportation, energy, environmental protection, ICT, education, healthcare, and agriculture, among others. By specifically selecting transportation, energy, and public services as priority sectors, the Decision establishes a roadmap for Cambodia’s PPP initiatives over the next decade.

Highlights of the PPP Regulatory Frameworks:

Since 2021, Cambodia has implemented several laws and regulations to ensure the successful implementation of PPP projects, structured to align with international standards and best practices, including:

  • The Law on Public-Private Partnerships (2021): This law provides guidelines on project identification, feasibility studies, financing, and risk allocation between the public and private partners.
  • Sub-Decree No. 174 (2022): Provides standard operating procedures for project development, from feasibility studies to contract management to align with international best practices and fostering investor confidence in investing in Cambodia’s PPP landscape.
  • Sub-Decree No. 234 (2024): Introduces Viability Gap Financing (VGF) to support projects with high potential but limited commercial viability, offering financial support through grants and concessional loans to reduce investment risks.
  • Numerous Standard Operating Procedures (SOPs): Cambodia has introduced a wide range of SOPs and guidelines to support the implementation of these regulations, addressing various stages of PPP project development (which can be access here).

Opportunities for Investors

Cambodia’s robust regulatory framework demonstrates its commitment to fostering a conducive environment for PPP projects. It provides stability and clarity for investors to participate in long-term, impactful infrastructure initiatives. Cambodia’s focus on transportation, energy, and public services as priority sectors underscores the government’s commitment to fostering public-private collaboration for economic growth and sustainable development

 

Important Notice: The information presented in this article is intended solely for general informational purposes and should not be interpreted as legal advice.

This legal update is brought to you by Davies SM Attorneys-at-law. For more information and guidance, contact our partners and explore the Library of Laws section on Aquarii’s online platform to stay informed on business and investment laws in Cambodia.