Cambodia has received an additional $42m loan from the Asian Development Bank and a $21.5m grant from the Australian Government to rebuild its railway network.
The project to reconstruct the 600km rail network began in 2007 and is expected to finish in 2013, according to Reuters.
Once finished, the railway will connect with the railway in Thailand, and through it with Malaysia and Singapore.
The project is also funded by $13m from the OPEC Fund for International Development.
Malaysia has contributed 106km (66 miles) of track worth $2.8m towards the project.
Australian Ambassador Margaret Adamson said the new railway would boost the Cambodian economy, minimise road traffic accidents and reduce its greenhouse gas emissions.