The ADB will provide a loan of $16.3m and Korea will provide $25.6m through its Economic Development and Cooperation Fund (EDCF) for the project.

The road passes through the Banteay Meanchey and Oddar Meanchey provinces in Cambodia and link northeast Thailand. The road also forms a feeder connection to the Greater Mekong Subregion (GMS) east-west corridor.

The renovation will help cut travel times and improve traffic safety in the country as well as increase connectivity between Thailand and Cambodia for better transport and trade.

The road is also expected to boost cross-border tourism for Cambodia as it provides a link to its famous Angkor Wat temple.

The government of Cambodia will fund $6m towards the project, which is expected to finish in December 2013.