Signing of Japanese ODA Loan Agreements with Cambodia: Contributing to the economic development of the country by improving the Southern Economic Corridor, strengthening the rural road network, and improving the water supply

[Goal 1]No Poverty
SDGs
[Goal 6] Clean Water and Sanitation
SDGs
[Goal 9] Industry, Innovation and Infrastructure
SDGs

2023.06.28

On June 22, the Japan International Cooperation Agency (JICA) signed loan agreements with the Royal Government of Cambodia in Phnom Penh to provide Japanese ODA loans of up to a total of 32,978 million yen for the following three projects.

Signing Ceremony (courtesy of the Ministry of Economy and Finance).

Signing Ceremony (courtesy of the Ministry of Economy and Finance).

(1) National Road No.5 Improvement Project (Prek Kdam – Thlea Ma’am Section) (IV) (loan amount: 7,205 million yen)
(2) Rural Road Connectivity Improvement Project (I) (loan amount: 23,692 million yen)
(3) Siem Reap Water Supply Expansion Project (III) (loan amount: 2,081 million yen)

Details for the projects are provided below.

(1) National Road No.5 Improvement Project

(a) Objective and Summary

The objective of the project is to increase the transportation capacity and improve the logistics efficiency between Prek Kdam and Thlea Ma’am Section along National Road No.5, which connects the capital, Phnom Penh, and the Thai border, by widening and improving the condition of existing roads and constructing new bypasses. In doing so, the project will contribute to the economic development of Cambodia. Additionally, in the same region, JICA is also carrying out another technical assistance project called the Project for Improvement of Road Traffic Safety on Trunk Roads, which is helping to ensure road safety along National Road No. 5. Together, the two projects will also contribute to the achievement of SDGs (Sustainable Development Goals) Goals 3 (Good health and well-being) and 9 (Industry, innovation and infrastructure).
The first three phases of the National Road No.5 Improvement Project—(Prek Kdam – Thlea Ma’am Section) (I) (L/A signed in July 2014, loan amount: 1,699 million yen); (II) (L/A signed in March 2016, loan amount: 17,298 million yen); (III) (L/A signed in March 2020, loan amount: 11,715 million yen)—have already been provided, and this loan will be provided as the fourth phase (IV). Although the project has already been completed, some of the payments were set to be made after the completion, and this loan will be used for those payments.

(b) Executing Agency

Ministry of Public Works and Transport
Address: Norodom Boulevard, Phnom Penh, Cambodia
Phone: +855-(0)23-722-715

(c) Planned Implementation Schedule

1. Completion of project: already completed
2. Issuing of letters of invitation for consulting services (including detailed design work): already hired
3. Tendering of announcement of initial procurement package for local competitive bidding on project construction: already contracted

(2) Rural Road Connectivity Improvement Project

(a)Objective and Summary

The objective of the project is to strengthen the rural road network, improve people’s access to socioeconomic activities, and adapt to climate change. It will do so by improving rural roads and related infrastructure, including bridges and drainage structures, in the provinces surrounding National Road No.5, thereby contributing to the socioeconomic development of the target area and to the achievement of SDGs Goals 1 (No poverty) and 3 (Good health and well-being).

(b) Executing Agency

Ministry of Rural Development
Address: 771-773 Preah Monivong Blvd (93), Phnom Penh, Cambodia
Phone: +855-(0)12-599-599

(c) Planned Implementation Schedule

1. Completion of project: August 2027 – when the facilities are put into service
2. Issuing of letters of invitation for consulting services (including detailed design work): June 2023
3. Tendering of announcement of initial procurement package for local competitive bidding on project construction:
Procurement package title: Construction Works (Civil Works Package)
Release date: October 2024

(3) Siem Reap Water Supply Expansion Project (III)

(a) Objective and Summary

The objective of the project is to ensure a safe and stable supply of water, improve the living environment, and promote tourism in Siem Reap city—the largest tourist city in the country, where the ruins of Angkor Wat are located and which is experiencing a rapid progression in both urbanization and tourism. It will do so by improving water-supply facilities, including intake facilities, water-purification plants, and distribution pipes, etc. This project will therefore contribute to the achievement of SDGs Goals 3 (Good health and well-being) and 6 (Clean water and sanitation).
A Japanese ODA loan for the first two phases of this project—L/A signed in March 2012 for 7,161 million yen and in October 2021 for 6,336 million yen, respectively—has already been provided, and the current yen loan will cover the third term. Although the project has already been completed, some of the payments were set to be made after the completion, and this loan will be used for those payments.

(b) Executing Agency

Siem Reap Water Supply Authority
Address: Slorkram Village, Slorkram Commune, Siem Reap City-Province
Phone: +855-(0)12-858-006

(c) Planned Implementation Schedule

1. Completion of project: already completed
2. Issuing of letters of invitation for consulting services (including detailed design work): already hired
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction: already contracted

Terms and Amounts of Loans

Project title Amount
(million yen)
Annual interest
rate (%)
Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
National Road No.5 Improvement Project (Prek Kdam – Thlea Ma’am Section) (IV) 7,205 TORF + 40bp 0.01 30 10 General untied
Rural Road Connectivity Improvement Project 23,692 TORF + 40bp 0.1 30 10 General untied
Siem Reap Water Supply Expansion Project (III) 2,081 TORF + 40bp 0.1 30 10 General untied

Sns share!

  • X (Twitter)
  • linkedIn
To the list page