Signing of Japanese ODA Loan Agreement with Cambodia: Contributing to Economic Growth through the Improvement of Water Supply and Power Transmission Networks

[Goal 6] Clean Water and Sanitation
SDGs
[Goal 7] Affordable and Clean Energy
SDGs
[Goal 13] Climate Action
SDGs

2025.10.14

On October 13, the Japan International Cooperation Agency (JICA) signed loan agreements with the Royal Government of Cambodia in the capital city Phnom Penh, to provide Japanese ODA loan for the following two projects. The signatures were exchanged between Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth of the Royal Government of Cambodia and JICA President Tanaka Akihiko.

Signing ceremony

Terms and Amount of Loan

Nirodh Water Supply Expansion Project (I)

- Country (Target Areas)
Kingdom of Cambodia (Metropolitan Phnom Penh)

- Project Objective
To expand water supply facilities in Phnom Penh, facing tight water supply and demand, by improving stable water supply services, thereby contributing to the improvement of the people's living environment and the promotion of urban commercial and economic activities.

- Project Component
A) Expansion of the water treatment plant, and procurement and installation of raw water pipelines
B) Procurement and installation of a transmission pipeline
C) Procurement of transmission and distribution pipelines
D) Installation of the pipelines procured in item c)
E) Consulting services (basic/detailed design, bid assistance, construction supervision, human resource development, support for smart water management system utilization, etc.)

- Maximum Loan Amount
21,526 million Japanese Yen

- Annual Interest Rate
Project: TORF+40bp, Consulting Services: 0.65%

- Repayment Period
30 Years

- Grace Period
10 Years

- Procurement
General untied

- Executing Agency
Phnom Penh Water Supply Authority

- Contribution to SDGs
Goal 6 (Clean water and sanitation)
Goal 13 (Climate action)

- Planned Implementation Schedule
1. Completion of the Project: August, 2032, upon facility provision.
2. Issuing of letters of invitation for consulting services (including detailed design work): December, 2025
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:Package for Construction Works
Release date: February, 2027

Phnom Penh City Transmission and Distribution System Expansion Project (Phase 3) (I)

- Country (Target Areas)
Kingdom of Cambodia (Phnom Penh)

- Project Objective
The objective of the Project is to enhance the stability of electrical supply in Phnom Penh and promote the introduction of renewable energy by providing new substations, transmission lines, distribution lines, and augmenting the existing substations, thereby contributing to sustainable economic growth in Cambodia.

- Project Component
i) Substation construction
ii) Transmission and distribution system expansion
iii) EV charging stations and related facilities
iv) Consulting services (basic design, tender assistance, construction supervision, support for implementation of environmental and social consideration, technology transfer, etc.)

- Maximum Loan Amount
22,911 million Japanese Yen

- Annual Interest Rate
Project: TORF+40bp, Consulting Services: 0.65%

- Repayment Period
30 Years

- Grace Period
10 Years

- Procurement
General untied

- Executing Agency
Electricité du Cambodge

- Contribution to SDGs
Goal 7(Affordable and clean energy)
Goal 13(Climate action)

- Planned Implementation Schedule
1. Completion of the Project: November 2032, when the facilities are put into service
2. Issuing of letters of invitation for consulting services (including detailed design work): November 2025
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:Package for Substation construction work, Transmission and distribution system construction work
Release date: August 2027

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