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Development assistance in Cambodia

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Economic recovery in Cambodia

Cambodia Agricultural Value Chain Program – Phase II (CAVAC II)

$84.2 million, 2016-2021

The Cambodia Agricultural Value Chain program – Phase II (CAVAC II) builds on the results and experiences of CAVAC I and Australia’s long legacy of agriculture assistance to Cambodia. In response to the structural transformations taking place in the Cambodian economy, CAVAC has transitioned its focus from a smallholder value-chain program to one that focuses more directly on the competitiveness and diversification of the agriculture sector supporting Cambodia to boost its economic resilience. 

Following a strategic review, CAVAC’s overarching goal is to promote a commercially viable, resilient agriculture sector that supports inclusive growth. This is being achieved through contributing to profitable and sustainable irrigated agriculture, and promoting the competitiveness and diversification of the sector. CAVAC II has built irrigation schemes in the Cambodian provinces of Takeo, Kandal, Prey Veng, and supports competitiveness activities nationwide.

To increase incomes, rice farmers need to increase the quantity or quality produced and to diversify crops. To do this they need to understand and adopt modern farming techniques and have reliable access to inputs such as water, seeds, fertiliser and pesticides, as well as better opportunities for selling their produce. CAVAC II helps farmers by working with businesses, the public sector and civil society players who supply agricultural products and services to farmers. In parallel, CAVAC II works with public sector stakeholders including the Royal Government of Cambodia's Ministry of Agriculture, Forestry and Fisheries, Ministry of Water Resources and Meteorology, and Provincial Departments to improve the enabling environment and attract more investment, including into higher value added crops and agro-processing.

During the construction of irrigation schemes under the program, CAVAC II establishes Farmer Water User Communities to support the sustainable operation and maintenance of the schemes. CAVAC II supports these elected groups of farmers by providing capacity building and support for the development of systems for monitoring and collecting fees for water usage. CAVAC II does this work in conjunction with the Provincial Departments of Water Resources and Meteorology. CAVAC II is now also supporting other development partners to improve the quality and sustainability of non-CAVAC constructed schemes. 

CAVAC II builds partnerships where all players benefit from adopting innovations that eliminate the constraints to growth. The program also conducts other activities related to agribusinesses and sharing information with farmers. CAVAC II continues to work with private companies in the seed, fertiliser, pesticide, media, milling and export markets. Innovations with the private sector help to improve their business and, at the same time, help farmers to access better solutions for farming.

Related documents*

Name of document Year published Type
CAVAC II Investment Design Document 2015 Investment design
CAVAC II Mid-Term Review 2020 Independent evaluation

Related links

3i: Investing in Infrastructure

$49.4 million, 2015-2021

Investing in Infrastructure ('3i') is an innovative approach in the infrastructure sector. We are working with the private sector to help companies connect households and businesses to utilities and other services, and to support new opportunities for trade-related businesses and industries. 3i is supporting infrastructure investment in the electricity and water sectors.

3i is also providing high quality technical advice and capacity building to facilitate Cambodia’s transition to a sustainable energy mix, improve the quality and implementation of construction safety standards and support the transformation of Sihanoukville into a “smart city”.

Related documents*

Name of document Year published Type
3i: Investing In Infrastructure–Investment Design 2014 Investment design
Scalability Review of Investing in Infrastructure 2017 Independent evaluation

Related links

3i: Investing in Infrastructure website

Australia-UNDP Resilience Fund for Cambodia

$9.5 million, 2020-2024

The objective of the Resilience Fund is to strengthen Cambodia’s resilience in the context of a fast-changing domestic and regional context. The Fund features three core components: (1) Clearing for Results Phase-IV; (2) a flexible funding mechanism focused on COVID-19 response; and (3) a humanitarian window (if required).

Component One of the Fund is financing demining activities which will clear approximately 56km2 of contaminated land from landmines and release it for productive use, supporting employment during the pandemic and expanding the agricultural sector. Component Two is supporting the Cambodian Government to respond to COVID-19 through economic impact modelling, support for cash transfer systems, trade facilitation, consumer protection and e-commerce acceleration.

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