Cambodia - 14 October 2025
PENG SOUR Construction Co., Ltd. has been given a USD 3.19 million contract by the Cambodian government, through the Ministry of Water Resources and Meteorology (MOWRAM), to develop important irrigation systems as part of the Cambodia Agricultural Sector Diversification Project (P163264). After a competitive bidding process, the contract, which was funded by the World Bank (IDA Credit No. 63660), was formally signed on October 14, 2025, and published on October 22, 2025.
The project's scope and overview
Three significant agricultural sites will have irrigation infrastructure developed as part of the awarded contract, MOWRAM-CW06:-
Samnanh Tramkak Banlae Pteah
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Mtes. Troyeung Damnak
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Zone of Modern Agriculture Srauv Neang Om
The projects, which are expected to be finished in five months, are intended to support sustainable agricultural productivity in Cambodia's rural provinces, enhance water management, and increase irrigation capacity.
Launched under Project ID P163264, the Cambodia Agricultural Sector Diversification Project is a flagship World Bank-financed project aimed at improving agricultural resilience and competitiveness. In order to help smallholder farmers, it focuses on enhancing value chains, increasing irrigation coverage, and promoting contemporary farming methods.
PENG SOUR Construction Co., Ltd. was the winning contractor.
The engineering and construction firm PENG SOUR Construction Co., Ltd., the successful bidder, is situated in Phnom Penh and has a track record of success in irrigation infrastructure and civil works. The company, which is based at #450, Hanoi Blvd, Khan Sen Sok, Phnom Penh, has worked on several infrastructure projects throughout Cambodia that have been funded by the government and development.The project's importance in promoting sustainable agriculture and water resource management is highlighted by the USD 3,199,632.15 contract value that was evaluated and signed.
Competition and the Tender Process
In accordance with World Bank procurement guidelines, the procurement process used the Request for Bids (RFB) method, guaranteeing openness and competition. PENG SOUR Construction was the only responsive company among the three bidders. According to the evaluation criteria, NGUON PICHRACHANA Design and Construction Co., Ltd., and UNG SIM SIA Construction Co., Ltd., the competing bidders, were eliminated for their lack of response.Strategic Importance for the Agriculture Sector in Cambodia
The irrigation improvements covered by this contract are essential to Cambodia's efforts to develop market-orientated and climate-resilient agriculture. Farmers in the Tramkak and Damnak Troyeung regions will be able to grow year-round, become less dependent on unpredictable rainfall, and increase food security thanks to improved water infrastructure.The project also supports Cambodia's larger Agricultural Sector Diversification Strategy, which aims to support rural economic growth, sustainable irrigation, and high-value crops.
In summary:
An important turning point in Cambodia's efforts to modernise its agricultural systems has been reached with the awarding of this USD 3.19 million irrigation infrastructure contract to PENG SOUR Construction. The project, which is anticipated to be completed in five months, will strengthen Cambodia's commitment to sustainable rural development in line with the World Bank's Agricultural Sector Diversification framework by providing farming communities with real benefits, increasing productivity, and enhancing national food security.
