Economic and Financial Analysis for the project Nurture

Situation

Cambodia continues to face numerous climate risks, including prolonged droughts, irregular rainfall, extreme heat, and widespread environmental degradation, all of which affect smallholder farmers many of whom rely heavily on rainfed agriculture. These pressures are compounded by weak water governance, limited access to reliable irrigation, market inefficiencies, high indebtedness among farming households, and persistent gender and social inequalities. In this context, the second phase of the Nurture Project is designed to address systemic bottlenecks that limit farmers’ capacity to adapt to climate shocks and to catalyse climate‑resilient and inclusive market development. Nurture Phase II is expected to generate significant strategic value by improving farmers’ adaptive capacity, strengthening climate‑resilient water governance, enabling adoption of regenerative agriculture, expanding income opportunities for women, youth and disadvantaged groups, and contributing directly to the outcomes of SDC’s Mekong Regional Strategy. The program aims to build climate‑resilient local systems that continue to function beyond project support, creating durable and scalable resilience gains for Cambodia’s rural communities. BFH HAFL conducted an ex- ante Economic and Financial Analysis for the program.