The Asian Development Bank will further finance Cambodia’s $141m rail project to repair and rebuild the entire 600km of rail network to improve regional and cross-border trade.

The new $42m loan will enable freight trains to operate between Kampot near the border with Vietnam and Cambodian capital Phnom Penh in 2011.

Money will also be used to develop a modern freight and rolling stock maintenance facility on the outskirts of Phnom Penh.

The entire project, scheduled to finish by 2013, includes rebuilding the war-destroyed railway link to Thailand and is expected to make Cambodia a sub-regional transport hub in the Greater Mekong Subregion.