Component 1 focuses on the rehabilitation and modernization of hydro-agricultural infrastructure across Cambodia. This includes the restoration of irrigation systems, canals, reservoirs, and water management facilities that are critical for agricultural productivity and rural livelihoods.

The component targets the entire chain of water resources management, from water capture and storage to distribution and field-level application. By rehabilitating these essential infrastructures, the program aims to improve water availability, reduce water losses, and enhance the efficiency of agricultural water use.