Signing of Japanese ODA Loan Agreement with Cambodia: Contributing to Sustainable Urban Development through Improvement of Drainage Facilities

[Goal 11] Sustainable Cities and Communities
SDGs
[Goal 13] Climate Action
SDGs

2026.05.01

On April 30, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Royal Government of Cambodia in the capital city Phnom Penh, to provide Japanese ODA loan for the Project for Flood Protection and Drainage Improvement in Phnom Penh Capital City (I). The signatures were exchanged between Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth of the Royal Government of Cambodia and JICA Executive Senior Vice President Miyazaki Katsura.

Executive Senior Vice President Miyazaki (left) and Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth (right)

In Phnom Penh, where many Japanese companies have been expanding their presence, flooding has become increasingly widespread and prolonged in recent years due to heavy rainfall associated with climate change and insufficient drainage infrastructure. The project aims to mitigate the increasing flood damage by developing and rehabilitating drainage facilities in the southwestern area of Phnom Penh, thereby contributing to the capital’s sustainable urban development and supporting the continued growth of corporate economic activities.

The project outline is explained below.

Project for Flood Protection and Drainage Improvement in Phnom Penh Capital City (I)

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

- Project Objective
The objective of the Project is to enhance stormwater drainage capacity and mitigate flood damage by developing and rehabilitating drainage facilities in the southwestern area of Phnom Penh, thereby contributing to improving the quality of life and promoting industrial development in Phnom Penh.

- Project Component
i) Construction of drainage channel (construction of a new box culvert and rehabilitation of concrete sheet piles)
ii) Construction of drainage channel (rehabilitation of open channel)
iii) Construction of drainage facilities (retention basin and drainage pumping station)
iv) Procurement of equipment for drainage channel operation and maintenance
v) Consulting services (detailed design services, bidding assistance, construction supervision, support for improving operation and maintenance capacity, etc.)

- Maximum Loan Amount
6,908 million Japanese Yen

- Annual Interest Rate
Project: TORF+25bp, Consulting Services: 0.8%

- Repayment Period
25 Years

- Grace Period
7 Years

- Procurement
General untied

- Executing Agency
Phnom Penh Capital Administration

- Contribution to SDGs
Goal 11(Sustainable Cities and Communities)
Goal 13(Climate Action)

- Planned Implementation Schedule
1. Completion of the Project: December, 2032, upon the start of facility operation
2. Issuing of letters of invitation for consulting services (including detailed design work): July, 2026
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:
Package for drainage facilities construction work
Release date: January, 2029

Sns share!

  • X (Twitter)
  • linkedIn
To the list page